South Africa is moving to change the empowerment law for Elon Musk’s Starlink

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South Africa has proposed new legislation to meet the conditions of Elon Musk to provide online internet service in his millionaire after the billionaire refused to comply with the laws of black empowerment, which was called “publicly racist”.

Days after a Bruising Between South African President Cyril Ramavusa and his American counterpart Donald Trump in the Oval Office, Pretoria moved to reduce positive labor laws that require foreign investors in communications to sell 30 percent of shares in its local entity to the historically deprived groups in order to qualify for operating licenses.

On Friday, the Minister of Communications, Sole Malatisi instead, suggested that companies invest in “stock equation programs” – such as registration of local suppliers, the creation of a certain number of jobs, or financing of small companies. The suggestion will be open for public suspension for 30 days.

The government said that the proposed change will not exempt companies from “the obligations of transformation”, but it provides them with a solution to “contributing beneficially to fairness, skills development and economic integration.”

Malatisi added that the new requirements “seek to provide the certainty that it is needed to attract investment to the sector.”

MuskOne of Trump’s closest advisers, has long complained that the current rules were placed in “a ridiculous situation where I was born in South Africa, but I cannot have a license to work in South Africa because I am not black.” Officials say he has not officially applied for a license for SPACEX, a company registered in the United States.

Other international communications operators in the country, such as the local unit in Vodafone, sold shares in local subsidiaries for black investors to comply with the current rules.

Black empowerment policies have always been supported by the ruling African National Congress to address ethnic outbreaks created under the apartheid system. The percentage of blacks that you own 60 percent By 2022, he has doubled since 2019.

But critics say that the requirements are often an exercise on a square, and they have been abused corrupt Companies and politicians for the benefit of the elite with a deterrent of foreign investment that affects the need.

Malati told the Financial Times in February that equal exceptions to stocks could help “expand broadband connection with a quarter of our population that cannot access the Internet, with the fact that the current legislation does not cover this.”

Click to reduce the rapid legislation after the White House high -end meeting on Wednesday, as Trump rushed against “Southern Laws” of South Africa, which he claimed was leading an immigration from the white African to the United States. Musk later attended a work lunch with both presidents.

Last month, neighboring Lesotho gave Starlink a 10 -year operation license in an attempt to alleviate a 50 percent blanket tariff imposed by the United States on the country.

South Africa analysts have greatly praised the suggestion of the stock equation for communications, which repeats the policies already in some other industries, including the auto sector.

“If you look at a service like Starlink, this will be of great benefit to rural societies,” said Ralph Matthega, an independent political analyst at Johannesburg. “It is simply unjustified to comply with the rules of black empowerment when this harms the rest of the country.”

Starlink has proven to be popular in other African countries that lack rural areas that lack traditional broadcast communications. Politicians pressed Starlink on the basis that it will help in education, health and other social services. In 2023, only 1.7 percent of the countryside residents had access to the Internet at home, according to government data.

However, the proposal actually attracts fierce criticism that the country bends the rules related to the basic element policy just to absorb musk.

Jlius Malima, the leader of the leftist leftist party, said that the economic freedom fighters said that he “will oppose the star in Parliament” as Musk collected the idea that revealed the existence of a “white genocide” in South Africa.