MUSK, RAMAPHOSA AT ODDS OVER SA EQUITY RULES

Ramaphosa indicated that alternative investment structures—rather than direct ownership stakes—could allow Musk's satellite internet venture to comply with South Africa's Black Economic Empowerment (BEE) regulations. The president cited examples of US firms that have navigated similar equity rules through similar mechanisms. The disagreement highlights tensions between international business interests and South Africa's ongoing efforts to redistribute economic power along racial lines. Starlink's expansion in South Africa has stalled amid questions about how the company will meet local ownership requirements. Equity-equivalence programs typically involve financial commitments or investments in community development, supplier diversity, or other wealth-building initiatives that count toward compliance without requiring direct shareholding. Ramaphosa's suggestion offers a framework that could satisfy both parties—enabling Starlink's market entry while maintaining South Africa's equity mandate. The outcome may set precedent for how multinational tech firms structure operations in emerging markets with similar equity requirements.