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Elon Musk's Starlink service is growing across Africa, with more than two dozen countries connected to the satellite internet service.
We look at LEO satellites and constellations as an integral part of the future. We're not fighting them, we're not resisting, We're actually embracing them, and we're thinking about the partnership models that makes more sense in specific markets.
But ownership rules in South Africa have held Starlink back from the country and the firm has been lobbying hard to find a way in Africa's most industrialized economy.
First of all, you should be questioning why is there why they're racist laws in South Africa. That's the first problem.
That's what you should be attacking.
Now.
I'm in the subsid situation where I was born in South Africa but can get a license to operate in Starlink because I'm not black.
Does that seem right to you? On today's podcast, we'll look at Starlink's progress across the continent and why their attempts to enter South Africa are proving to be quite controversial. I'm Jennifer's Abasaga and This is the Next Africa Podcast, bringing you one story each week from the continent, driving the future of global growth with the context only Bloomberg can provide. And joining me this week is Bloomberg's senior reporter Loney princelou and also our reporter Rivaldo Yankees. Thank
you both for being with us this week. You both have done extensive reporting on this subject, so I'm really grateful that you both came on the podcast. Loney, let's just start with a look at Starlink and what it is exactly and what are the services that the company has been offering across the continent over the past few months.
So as Starlin, as we know, is a low as orbit satellites sort of constellation, and at the moment, I have something like fourteen thousand satellites orbiting around the which makes it one of the easiest ways to connect, especially when it comes to rural areas and the cheapest ways. So many African countries have actually taken up the starting service. I think they are in twenty five African countries at
the moment, including Nigeria and Kenya. Some of the holdups that we've seen in terms of African countries taking up. The service is of course licensing and many countries, not just in Africa but in other places requiring local ownership and starting as a rule do not actually see local ownership. So that's been one of the sort of sticking points in many of these markets.
And of course there's been quite a bit of talk about the importance of getting the continent connected right. The mobile penetration is high, but we still need to get connectivity up. When we look at starlink and compare the services that it offers in terms of connection, is it offering a better proposition or countries compared to some of the other players in the industry.
So you made an important point. There is coverage often, but the actual connections to homes in rural areas are quite low. Even in a country like South Africa, where the connectivity is high across the board more than eighty percent, when it comes to connecting rural houses, that's lower than one point seven percent in rural South Africa, So you can see there's quite a big discrepancy. And the easiest and the cheapest way to connect those houses is through
satellite technology. And what Mask has done very well is the way he's packaged his technology, it's very mobile, it's very easy to use, it's small kits, so that then becomes a very user friendly option for these areas. It's also often it's much cheaper than trying to connect through a fiber connection when it comes to telecoms providers like a Voticon or mpty in so it does, in many instances provide a better way to connect things like emergency services and rural areas.
How much cheaper approximately are we talking, Lenie?
So it really depends from country to country and what your options are, and it's often it's not that it's that much cheaper, but it is that it's more convenient and that it's the actual only connection that can get to that certain spot. So I think in places like Zimbabwe it did turn out to be a lot cheaper, about fifty percent cheaper. I think the important part is that it's often the most usable option when it comes to certain areas. Well.
Let'stick into one of those countries that doesn't currently have starlink operating, and that is of course South Africa. As was mentioned Reval though, let's bring you in here. But because you've been doing some reporting on this, what is the opposition, right now to Starlink opening up here in the country.
So the big issue here is regulation South Africa is what's called Blaque empalment loose, which basically required telecom companies to have at least thirty percent black local ownership. The idea is to fix the economic inequalities created during a party. Now for Elin Musks basics installing, that's a problem because they don't want to give up ownership to enter the market. That's really the main barrier right now.
And of course it's hard to separate Elon Musk from the debate. He was born in South Africa but left for North America when he was seventeen. Recently he's spread a conspiracy theory about a quote genocide against white people in the country, and US President Donald Trump has promoted the message Rivaldoloni stick with me. When we come back, we'll talk more about Starling's plans for South Africa and why they're lobbying in the country. Is proving to be
quite controversial. We'll be right back. Welcome back. Today we are looking at Starlink's growth in Africa and why South Africa is proving to be a sticking point for the company. Loney princelu and Rivaldo Yankeys are both with me still. Rivaldo, before the break, we were just talking about some of the sticking points for Starlink and Elon Musk around ownership.
What has the government had to say about this? Because Black empowerment laws, as you were just mentioning, they were introduced after the end of apartheid and compelled companies and industries, including banking, mining and telecommunications to sell stakes to black people who were systemically excluded from the economy during white minority rule. I imagine the government has had quite a lot of commentary around this in particular.
So this is where things get messy. There's basically a political split inside government. I mean sooth Africa. We have a government of national Unity. So Minister Soli Malachi of the DA as a change the changing these rules so companies like Stalling can invest in things like infrastructure or communities instead of giving up ownership, which is basically the equity, equivalent and alternative to be laws. But the government isn't united on this. Members of the AGENC, like Deputy Minister
only Kungo Beele, they're pushing back. I'm saying that you can't just change the law like that. So it's basically a split inside or government of National Unity.
What about Starlink itself, I imagine you spoke to them for your own reporting.
So Stalling hasn't officially commented in interviews, but earlier this year they published the blog post responding to the debate. So the blog post is basically debunking myths and facts about potentially operating in South Africa. So they pushed back on some of the criticism and so that they committed to South Africa. They're also promised to invest about five hundred million rare into things like connecting the rural schools,
what I speed internet. So the message is from Stalling, we can still contribute to the country, just not through local.
Ownership, Lennie. Clearly, as Rivaldo was just pointing out there, this has attracted quite a lot of attention within the government, even within I think that the tech industry, which you cover quite extensively, and even citizens. Right, when you talk about connectivity in South Africa, how important would Starlink operating here be for the company. Let's just start with that.
South Africa is of course the biggest economy in Africa, in the biggest chem of things. I can't think that it would really hit stalling margins, if I can put it that way. So it seems emotive. It seems like
it's very important for him to operate here. And while it is the biggest economy in Africa and it must be important to operate here, he has many other countries around the world to operate and so yeah, one has to ask what is motivating him so strongly to comment almost weekly on the situation in the country and on the sort of black empowerment laws and things like that.
Exactly. That's sort of what it's seeming like and lonely. Maybe just before we wrap up, you mentioned Starlink is expanding globally, even on the continent. What are you watching for next when it comes to some of these expansion plans for Starlink.
I'll speak specifically on Africa. They've recently opened in Central Republic of Africa, so that wasn't much I think, and then they've tried to open in Namibia, which they sort of we're blocked by the same thing, local ownership. Namibia is asking fifty one percent local ownership and so there was sent away. They're going to appeal that decision. As I understand, but for them, really they're in twenty five Africa countries, they want to be in all fifty four.
This is the sort of messaging we've been getting all along for Starling is really also a numbers game, so you really want to launch in every country where where you can. There's different concerns around US, not only local ownership laws, there's also things around security, like information security that people are thinking about with a US company operating here,
what information can they actually access, what information can they use? So, as you can understand, the debate is huge, and as technology evolves quite fast and different players want to enter, this just becomes more and more of a conundrum when it comes to regulations and what to allow and not to allow in your country, especially if it is that's important to have people connected because as you get connected, you're also able to access the international economy much easier.
There's different debates around US.
Do you think it potentially poses a risk for some of the telecom providers already on the continent.
So the big guys on the continent is empty En, Etail, Vitacom. All of these have individually actually partnered with Starling in some sort of way where they Startink does owned licenses, they sell the hardware of styling, for instance, in their shops. It's a combination where the providers will want to work
with styling Starlink. Of course in many instances want to go at it by itself, so it does pose a risk, but I think it's sort of there's a lot of space for the continent to get connected in different ways. So it's a five G or a four G, or it's fiber and then satellite. You have to work in satellite into the equation. So I think there's room for all of these players if you want to connect a very big continent as Voss and messes for everyone, I would.
Say Bloni and Rivaldo thank you again so much for joining us this week, and be sure to read Rivaldo's report on Bloomberg platforms right now. Will put a link to that in the show notes. Here's some of the other stories we've been following across the region this week. Madagascar's anti corruption authorities are probing major irregularities in the management of public resources estimated at three thousand, eight hundred and eleven billion ariari about nine hundred and nineteen million dollars.
That's according to the presidency and Zimbabwe's dollar denominated stock exchange has eclipsed the country's one hundred and thirty two year old main course, propelled by the biggest listing in the nation's history. You can follow these stories across Bloomberg, including the Next African Newsletter. We'll put a link to that in the show notes. This program was produced by Adrian Bradley and tiwa Adebayo. Don't forget to follow and review the show wherever you usually get your podcasts. I'm
Jennifer's Abisanja. Thanks as always for listening.