SpaceX’s satellite internet service, Starlink, is reportedly eyeing South Africa as a priority market in its global expansion plans, according to insights shared by McDonald’s South Africa CEO, Greg Solomon.
During a Q&A at the University of Pretoria’s Hendrick van der Bijl Memorial Lecture, Solomon highlighted Starlink’s potential role in transforming connectivity in rural South Africa.
As McDonald’s continues its push into underserved regions, Solomon emphasized the digital adaptability of South Africans, noting that, despite economic challenges, many citizens possess mobile-savvy skills.
Enhanced access to broadband, he suggested, could significantly uplift these communities by driving financial empowerment and improved quality of life.
“Starlink is really trying to come into this country,” Solomon stated.
He disclosed that the company’s leadership sees South Africa as a top-10 market globally, underscoring Starlink’s recognition of the untapped potential in unconnected regions across the country.
Although Starlink has not officially launched in South Africa, its roaming services have gained traction among farms, guesthouses, game lodges, schools, and mining operations in remote areas.
MyBroadband sources report that KFC and Toyota franchisees are among its early adopters through unofficial channels.
The company’s forthcoming direct-to-cell service, which eliminates the need for a dedicated dish, could prove especially transformative for rural communities, where traditional mobile towers are often infeasible.
To advance rural coverage, Starlink is reportedly in talks with several mobile networks, including MTN.
The satellite provider is one of many low-Earth orbit (LEO) satellite companies targeting the growing cellular market in Africa.
AST SpaceMobile, another key player backed by Vodafone, has also tested direct-to-cell services in the region, supported by Vodacom.
Regulatory Hurdles
Despite Starlink’s appeal, South Africa’s regulatory environment poses significant obstacles. Starlink currently lacks the Electronic Communications Services (ECS) and Electronic Communications Network Services (ECNS) licenses required to operate legally in the country.
The Independent Communications Authority of South Africa (Icasa) has mandated that any applicant must be at least 30% owned by historically disadvantaged groups (HDG) or, under newer guidelines, 30% black-owned.
This has stalled Starlink’s official entry, though its roaming service has been active since early 2023.
The licensing challenges prompted action at high levels of government, with President Cyril Ramaphosa and SpaceX CEO Elon Musk reportedly discussing potential investments during a recent meeting.
Additionally, Communications Minister Solly Malatsi has initiated plans to amend Icasa’s ownership requirements through equity equivalent programs, which could offer foreign companies alternative means to contribute economically without meeting ownership quotas.
“This is in line with the Codes of Good Practice,” Malatsi explained, referring to standards that enable multinational companies to invest locally while considering their global structures.
“Equity equivalents provide an avenue for factoring in alternative ways for companies to make an impact on South Africa’s socioeconomic development.”
Industry players have long advocated for the recognition of equity equivalents in telecommunications, with Malatsi adding that such provisions could pave the way for increased investment in ICT and universal internet access.
With both regulatory and market conditions evolving, Starlink’s entry into South Africa could be within reach, offering a new frontier for rural connectivity and digital inclusion.
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