Calls to drop BEE requirement for Starlink criticised

American tech billionaire Elon Musk may be wielding enormous influence in negatively tilting US relations towards South Africa, but a local political analyst has underscored the importance of government not wavering on its broad-based black economic empowerment (B-BBEE) policy.

This was in reaction to Musk having rubbished as “racist” B-BBEE – a legal requirement compelling companies conducting business locally to include historically disadvantaged Africans in business deals.

Amid the Musk controversy, his company SpaceX yesterday emerged among several entities presenting bids before the Independent Communications Authority of SA (Icasa) public hearings in Centurion for the proposed new licensing framework for satellite services.

SpaceX presented bid before Icasa public hearings

With Musk’s Starlink – a low-earth-orbit satellite internet service operated by SpaceX, already launched in Botswana, Mozambique, Nigeria and Zambia – lobby group AfriForum, has been exerting pressure on Icasa to “drop its strict race criteria that currently encumber the granting of a South African licence to satellite internet service Starlink”.

MultiChoice, Meta Economic Development, Globalstar, Plan-S, Skylo Technologies and Viasat are among companies bidding for the new licensing framework for satellite services.

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While North-West University economics Prof Raymond Parsons conceded that SA was set to “reset its key trade and investment relations with the US in changed political circumstances”, independent political analyst Sandile Swana said Musk’s narrative on B-BBEE “should not lead to panic”.

“If Musk wanted to do business in SA, there can be no special arrangement for him.

“We should be consistent in how we deal with every competent company wishing to do business with us.

‘Musk is an opportunist’

“Elon is an opportunist who – due to seizing state power in the US with [President] Donald Trump – wants to use that to force SA to do business with his company in his own terms,” said Swana.

“In looking at his background of having been born in South Africa before leaving to settle in the US, we cannot recall any single statement he made about how bad segregation was.

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“Foreign-owned companies operating here have not given us problems since 1994. What we see is political thuggery or gangsterism, to quote Prof Cornel West,” he added.

Swana said every country – “whether it is China, Japan or the US, has got ethnic policies”.

South Africa, he said, had “a very long history of inequality based on ethnic background”.

SA’s history of inequality

“The constitution of 1996 put clear provisions to stop inequality based on race and to neutralise the multi-generational effects of economic apartheid and European settler colonialism.

“B-BBEE is among many instruments used to redress our past. That is political thuggery, to quote Prof West,” said Swana.

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Parsons added: “The role of Musk must be seen as part of the bigger picture of SA resetting its key trade and investment relations with the US in changed political circumstances.

“President Cyril Ramaphosa has emphasised using dialogue and engagement to resolve differences where they exist.”.

“We need to navigate these hurdles smartly as a global roller-coaster year unfolds for many countries, including SA.

Sona must give direction

“The State of the Nation Address must give further direction.

“In general, SA’s responses to any global shocks must lie in building resilience and boosting our economic performance.”

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