I often hear the argument that South Africa’s Black Economic Empowerment (BEE) policies are a barrier to foreign investment. The latest case? SpaceX’s request to the Independent Communications Authority of South Africa (Icasa) to revise the 30% black ownership requirement so it can launch Starlink in the country. But is BEE really unreasonable? Or is this just another case of a company wanting to bypass local economic transformation efforts?
Let’s take a step back and look at why BEE exists. South Africa remains one of the most unequal societies in the world, a reality born from decades of systematic exclusion. According to Statistics South Africa, white South Africans still earn three times more than their black counterparts on average. BEE policies are designed to correct this imbalance by ensuring that historically disadvantaged groups have a fair shot at economic participation.
SpaceX argues that its global policy prevents it from offering local ownership and suggests that alternative contributions, like investment in community projects, should be considered. While equity equivalence programmes are recognised in South Africa’s ICT sector codes, they are meant to complement, not replace, ownership requirements. The reality is that without such measures, foreign companies would continue to reap the benefits of South Africa’s economy without meaningfully contributing to transformation.
Other countries have similar local ownership requirements. Indonesia, for instance, mandates a 49% cap on foreign ownership in certain sectors, while Nigeria enforces 51% local participation in its oil and gas industry. South Africa’s 30% threshold is moderate by comparison and reflects a balanced approach to empowerment.
The truth is, companies like SpaceX can comply with BEE if they are genuinely committed to operating in South Africa. Many multinationals have successfully partnered with black-owned firms, fostering innovation and economic growth. Instead of resisting local empowerment rules, SpaceX should explore meaningful ways to participate in South Africa’s digital economy while honouring our transformation goals.
BEE isn’t a barrier; it’s a necessary tool to level the playing field. If global giants want access to our market, they must be willing to contribute to its long-term development—not just its profits.