South Africa is set to revise its Black Economic Empowerment (BEE) regulations to allow multinational ICT firms like Elon Musk’s Starlink to meet empowerment requirements through equity-equivalent investments instead of a 30% Black ownership mandate.

This adjustment aims to attract foreign investment in the ICT sector and enhance Internet access, especially in underserved rural areas where connectivity is minimal.

The equity-equivalent model has precedent in South Africa’s automotive industry and would enable companies to fulfill BEE through initiatives like infrastructure development and skills training.

The move could facilitate Starlink’s entry, significantly improving rural Internet services and supporting socio-economic development while balancing empowerment goals with attracting international investment.