Johannesburg – The Economic Freedom Fighter (EFF) has vowed to take legal action against the South African government over reports that it plans to provide Elon Musk's Starlink with a special exemption from the Black Economic Empowerment (BEE) law.
Musk's low-orbit satellite internet service Starlink, already operating in 18 countries and has a network of about 500 satellites serving more than 2.6 million users worldwide, meeting regulatory hurdles by attempting to establish a store in South Africa.
However, the EFF has condemned the SA's move to bypass strict bee restrictions as unconstitutional, warning that this will undermine the country's sovereignty.
EF condemns “illegal” Starlink trading
EFF spokesman Sinawo Thambo argued that if Musk is really concerned about South Africans, he advocates sanctions and investments rather than pushing Starlink's entry into the market.
“This decision undermines our legal and economic change agenda,” Tambo said.
“If Elon Musk really cared about people, he would respect South Africa's policy rather than seeking priority treatment.”
Government has reported a workaround for Starlink
According to a Bloomberg report, South African officials will meet with Musk or his representative to discuss Starlink's last-minute exemption from the bee requirements.
During President Cyril Ramaphosa's visit to the US this week, talks by his delegation aimed at ease tensions between South Africa and President Donald Trump will be held.
Related: President Ramaphosa arrives in Washington, DC before meeting President Trump – Bullsh
Musk, who spent at least $250 million to support Trump in the presidential election, has the ears of the US president.
Sources suggest that the SA government is keen to quickly track Starlink's operations in South Africa. There, the gap between internet costs and connectivity remains a major challenge.
However, critics argue that bypassing bee laws is a dangerous precedent for foreign investors.
Legal and political backlash
The EFF argues that Starlink exemption violates South Africa's constitutional commitment to economic relief.
The parties warned of court cases if the transaction proceeded without complying with local ownership laws.
As debate intensifies, the government is increasing pressure to balance foreign investment with equitable economic policies.
The results of the proposed Starlink transaction could set a significant precedent for future technology investments in South Africa.
For the past few months, Julius Malema has been the leader of F Musk and Musk, engaged in a bitter exchange of words.
Musk called for Malema to be declared “international criminal” on social media.
The EFF leader replied that he would not be bullied by masks or Trump, adding that he was sacred, saying he was “pleasant to become an international criminal.”
*This article was first published in sister publication techfinancials.co.za