Elon Musk’s claim about Starlink not operating in South Africa due to racial reasons has been denied by local officials. The country requires businesses to allocate 30% of equity to historically disadvantaged groups, a requirement Musk is reportedly contesting. Compliance with this law is emphasized for successful investment in South Africa.
Elon Musk recently expressed his grievances via social media, stating that his Starlink satellite internet service is forbidden from operating in South Africa due to racial discrimination. This assertion met with immediate backlash from users on X, including Clayson Monyela, the head of public diplomacy in South Africa, who refuted Musk’s claim, stating it is “not true” and unrelated to race.
In South Africa, any incoming businesses are mandated by law to allocate 30 percent of their equity to historically disadvantaged groups as part of their economic policies. Musk’s attempts to influence political landscapes in various nations have drawn criticism from local officials.
Monyela responded firmly to Musk’s comments, clarifying that Starlink is welcomed in South Africa, provided it complies with local regulations. He emphasized that compliance is a global principle in trade and investment, noting that over 600 U.S. companies are successfully operating within South Africa while adhering to these laws. Additionally, he pointed to Microsoft’s recent announcement about further investments in the country.
Musk has been pursuing the necessary licensing to launch the Starlink low-Earth-orbit satellite broadband service in South Africa but appears to be hesitant regarding the requirement involving equity allocation for telecommunications companies.
In summary, Elon Musk’s claims about racial discrimination preventing Starlink’s operation in South Africa have been firmly contested by local authorities. The country’s policy mandates that foreign investors support historically disadvantaged groups, which Musk must comply with. Notably, many U.S. companies are successfully navigating these regulations, demonstrating that adherence to local laws is pivotal for business success in South Africa.
Original Source: www.advanced-television.com
