Elon Musk’s Starlink, the satellite internet company based in the United States, is reportedly considering an investment of around 2 billion rand—or approximately US$112.7 million (equivalent to Rp1.83 trillion)—in South Africa. This move is part of its strategy to comply with the country’s Black Economic Empowerment (BEE) regulations to obtain an operating license, according to a report by Business Day citing unnamed sources.

Starlink, which provides low-Earth orbit (LEO) satellite internet services, plans to channel this investment into infrastructure development to support the Southern African Development Community (SADC), a regional bloc comprising 16 nations, the Johannesburg-based newspaper said.

Starlink has informed the South African government that it intends to collaborate with local companies to construct the necessary infrastructure. Additionally, it will lease land, fiber networks, energy, and procure local services for security and maintenance.

This effort is aimed at securing regulatory approval before South Africa hosts the G20 summit in Johannesburg this coming November, Business Day reported.

Elon Musk, who was born in Pretoria, has previously expressed interest in bringing Starlink's internet service to South Africa, which holds the largest economy on the African continent. However, he has refused to give up equity in the company to comply with BEE rules, which he has described as “openly racist.”

Solly Malatsi, South Africa’s Minister of Communications and Digital Technologies, has proposed amendments to the current empowerment legislation for international satellite providers. His proposal suggests allowing these companies to qualify for operating licenses by investing in Black-owned businesses and relevant infrastructure within South Africa, rather than the existing requirement of partnering directly with Black shareholders.

Nonetheless, Malatsi clarified earlier this month that the final decision on granting an operating license to Starlink rests with the country’s telecommunications regulatory authority, and no conclusion has yet been reached.