Starlink Proposes US$27.6 Million Investment to Connect Rural South African Schools
The offer was detailed in an email sent to South Africans who had previously expressed interest in the service.
Starlink, SpaceX’s satellite internet service, has officially reaffirmed its intention to enter the South African market through a formal letter addressed to Minister Mpho Parks Tau, head of the Department of Trade, Industry and Competition.
In the letter dated 14 June 2025, Starlink proposes an Equity Equivalent Investment Programme (EEIP) valued at R500 million (approximately US$27.6 million), which would be directed towards connecting 5,000 rural schools across the country. The investment would fund the deployment of Starlink kits and internet service, including installation and maintenance support through partnerships with local South African companies. The initiative is expected to impact more than 2.4 million schoolchildren annually.
In the letter, Goodnight stated;
“Today, millions of children are being denied access to education resources because South African broadband networks do not extend to the most rural parts of the country. This is a problem we want to help solve”
-Ryan D. Goodnight, Senior Director for Starlink Market AccessÂ
Regulatory Roadblock
Starlink’s entry into South Africa has been stalled by the country’s current licensing framework, which mandates that all telecom license holders must be at least 30% locally owned. According to the letter, this ownership requirement presents a barrier, as Starlink—like other global service providers—must retain full ownership of its subsidiaries in every country it operates.
“To be clear, the only reason Starlink is not in South Africa today is because ICASA’s license regulations stipulate that all license holders must be 30% locally owned,” the letter stated. It further emphasised that Starlink “has never sought an exemption from B-BBEE laws, nor have we asked for any special treatment.”
Instead, the company is advocating for the use of Equity Equivalent Investment Programmes (EEIPs), which are already allowed under South Africa’s Broad-Based Black Economic Empowerment (B-BBEE) ICT Sector Code. Starlink argues that these EEIPs provide a compliant, proven alternative to meet ownership targets—one that is already being used by global technology giants like Microsoft, Amazon, and IBM in South Africa.
Support for Policy Alignment
The letter voices strong support for the policy direction recently issued by Minister of Communications Solly Malatsi. That directive calls on ICASA (the Independent Communications Authority of South Africa) to align its licensing rules with the B-BBEE ICT Sector Code and allow the recognition of EEIPs for licensing purposes.
“If ICASA were to allow companies to utilize EEIPs, as envisioned by the B-BBEE Act, Starlink would immediately apply for its necessary licenses in South Africa and work as quickly as possible to provide high-speed internet service across the country, especially for those who need it the most”
-Ryan D. Goodnight, Senior Director for Starlink Market AccessÂ
Bridging the Digital Divide
Starlink’s proposed EEIP also aligns with the South African government’s broader SA Connect policy objectives, which seek to improve digital access across underserved areas. The letter highlights that satellite internet is a key component of the technology mix required to reach hard-to-access regions and unlock educational and economic opportunity.
If approved, Starlink’s proposal could be a transformative step in closing South Africa’s connectivity gap, especially for rural learners who remain disconnected from the digital economy.
