The decision whether to award Elon Musk’s Starlink an operating license in South Africa will ultimately rest with the country’s industry regulator, a government minister said.

The Pretoria-born Musk has indicated that he wants Starlink internet services, which rely on a constellation of low-Earth orbit satellites, to be made available in Africa’s largest economy. But he has refused to relinquish any equity in the business to comply with Black-empowerment rules — which he says are “openly racist.”

Policy direction will be determined following inputs from all interested parties, “but the awarding of a license will remain in the hands” of the Independent Communications Authority of South Africa (Icasa), Communications and Digital Technologies Minister Solly Malatsi told the Cape Town Press Club on Tuesday. “There will be a lot of issues remaining that can only be worked out between the applicant and Icasa.”

Malatsi has championed changes to the empowerment laws for multinational satellite providers. He’s proposed that instead of being required to partner with Black shareholders they should be able to qualify for operating licenses by meeting other requirements, such as investing in Black-owned businesses and related infrastructure within South Africa.

The minister is a member of the business-friendly Democratic Alliance, the second-largest party in the country’s governing coalition that was set up after last year’s elections failed to produce an outright winner. His proposals have met with resistance from other political parties, which argue that further action is needed to tackle racial disparities that persist more than three decades after the end of White-minority rule.

Equity-equivalent deals similar to those proposed by Malatsi have previously been offered to automotive companies such as BMW AG, Ford Motor Co. and Toyota Motor Corp — they established funds that promote the advancement of Black people in the industry without partially ceding ownership.

Starlink’s technology would be a potential game-changer for South African users who’ve historically faced expensive or unreliable internet options. Only 2.7% of rural households have access to the web, according to a 2024 survey compiled by the local statistics agency.

Other rapidly growing low-Earth satellite services such as the Middle East’s Space42 and China’s SpaceSail project could also benefit from a change in the rules should they begin operating in South Africa.