South Africa is preparing to open its skies to satellite internet providers after the government signalled changes to local ownership requirements, a move that could allow Elon Musk’s Starlink to operate without relinquishing equity, Bloomberg reported.

The shift comes amid persistent connectivity gaps: a 2023 survey found only 1.7% of rural households have internet access, highlighting the urgent need for affordable, reliable alternatives. Low-Earth orbit satellite technologies promise to reach these underserved communities, potentially transforming digital access across the country.

Telecommunications Minister Solly Malatsi directed the industry regulator to adjust rules that currently mandate 30% local Black ownership for foreign telecoms. Under the proposed framework, companies could meet Black economic empowerment obligations through equity-equivalent investment programs, such as infrastructure development, digital-inclusion projects, or research benefiting historically disadvantaged groups.

Malatsi said the move follows an extensive review of 15,000 public submissions, with roughly 90% supporting the new approach. The minister first proposed the changes in May, arguing that existing rules have unintentionally limited access to advanced technologies.

The exemption model is not without precedent. South Africa’s auto industry, for instance, allows international manufacturers to meet empowerment targets through investment funds supporting previously excluded groups, a strategy used by firms including BMW, Ford, and Toyota since 2019.