What Starlink wanted for its R500 million offer to SA schools
PRETORIA — Starlink offered to provide free satellite internet to 5,000 rural South African schools if its R500 million investment could count towards the ownership requirements for a local telecoms licence. US Ambassador Brent Bozell III says Elon Musk walked away when South Africa insisted that historically disadvantaged investors hold a 30% stake in the business that would operate here.
What the schools would receive
In a June 2025 letter to Trade, Industry and Competition Minister Parks Tau, Starlink offered to cover both the cost of installing satellite kits and the ongoing internet service. Its proposal included solar power, devices, software and long-term monitoring. The company estimated that 2.4 million learners could benefit each year and said participating schools would receive free internet indefinitely.
Bozell put the figure at 500 schools when he discussed the offer in an October interview. Starlink’s letter referred to more than 5,000, while the company’s published proposal puts the number at 5,000. Both versions of the company’s offer tied the investment to the terms on which Starlink could enter the South African market.
Why the licensing proposal stalled
Starlink sought to use an equity equivalent investment programme, which would allow it to retain ownership of its South African operation and meet its empowerment obligations by funding the schools project. Communications Minister Solly Malatsi backed that approach in a December 2025 policy direction. The difficulty arose over whether the telecoms regulator had the legal authority to implement it.
The Independent Communications Authority of South Africa (ICASA) said in May that the Electronic Communications Act requires at least 30% ownership by historically disadvantaged groups for individual licence holders. In the regulator’s view, accepting an investment programme in place of that stake would require Parliament to amend the law. Malatsi said he would pursue the amendment.
In a June reply to Parliament, the communications ministry said ICASA had received no licence application from Starlink. The company continues to publish its schools offer, but the condition attached to it remains unresolved. For the schools, there is still no confirmed date for connections to begin.
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