Elon Musk's satellite internet company, Starlink, has confirmed that it is prepared to provide free high-speed internet to 5 000 rural South African schools in perpetuity, but says it remains unable to proceed because of the country's Black Economic Empowerment (BEE) licensing requirements.

The offer, which Starlink values at R500 million, would provide connectivity to schools serving more than 2.4 million learners each year. It would include satellite equipment, internet subscriptions, solar power, devices, software, and long-term monitoring.

In an official statement, the company confirmed that its proposed programme would provide connectivity to rural schools "in perpetuity".

The initiative forms part of Starlink's proposed Equity Equivalent Investment Programme (EEIP), which would allow the company to meet South Africa's empowerment requirements through direct investment in disadvantaged communities rather than transferring equity in its local operations.

South Africa's telecommunications licensing regulations require 30.0% local ownership by black South Africans. Starlink argues that these requirements are inconsistent with provisions elsewhere in South Africa's empowerment framework that recognise equity-equivalent investments.

In June 2025 Starlink wrote to Trade, Industry, and Competition Minister Parks Tau, where it said that it had "never sought an exemption from B-BBEE laws" and was committed to operating legally in South Africa.

The company points out that international businesses, including Microsoft, IBM, and Amazon, have previously used equity-equivalent arrangements to meet empowerment requirements in other sectors.

Starlink has also rejected suggestions that it is seeking preferential treatment. It argues that the proposed regulatory changes would apply equally to other international satellite operators and encourage additional investment and competition.

The company maintains that its investment would have a greater direct impact on disadvantaged South Africans than an arrangement involving the transfer of shares to a smaller number of investors.