A Global Briefing by ToriPost
In the late 19th century, the Great Game was about territory and minerals. Today, it is about the “high ground“ of the 21st century: low-earth orbit. Around the world, we are seeing a digital leapfrog. Countries that missed the industrial revolution are skipping past the era of copper wires and fiber optics, moving straight to satellite-delivered broadband. Yet, in South Africa – the continent’s most sophisticated economy – the future is being held hostage by the past.
The irony is almost too perfect to ignore. Starlink, the satellite internet service owned by Elon Musk – a man born and raised in Pretoria – is currently available in Nigeria, Kenya, Rwanda, and Malawi. But in South Africa, it is effectively banned. Why? Because of a piece of legislation that mandates a 30% equity transfer to “historically disadvantaged groups.“
THE LOGIC OF THE BOARDROOM VS. THE LOGIC OF THE VILLAGE
To understand this, we have to look at the tension between redistributive justice and economic pragmatism.
Since the end of apartheid, the South African government has used Broad-Based Black Economic Empowerment (B-BBEE) as its primary tool to correct the systemic exclusion of the black majority. The intent is noble: you cannot have a stable democracy when the wealth of a nation remains concentrated in the hands of a small minority.
However, in the telecommunications sector, this has manifested as a rigid demand for 30% local ownership. For a global company like SpaceX, which maintains a centralized ownership structure to ensure rapid innovation and security, this is a non-starter. They don’t do local partnerships in the traditional sense.
THE OPPORTUNITY COST OF “EQUITY“
The result is a classic case of what economists call an “extractive institution.“ By prioritizing the creation of a few new black millionaires in a boardroom, the government is denying high-speed internet to millions of black South Africans in the rural periphery.
Think about the stakes:
- Human Capital: In a world where AI and digital literacy are the new currencies, a student in a rural village without internet isn’t just “behind“—they are being structurally excluded from the global economy.
- The Health Gap: Telemedicine could solve South Africa’s chronic shortage of rural doctors overnight. But you can’t run a digital clinic on a 2G signal.
- The Growth Chasm: Connectivity is a multiplier. According to the World Bank, a 10% increase in broadband penetration can lead to a 1.2% increase in GDP growth.
THE GLOBAL PERSPECTIVE
South Africa is not alone in its desire for local empowerment. But other nations have found a way to be smart about it. Many countries accept Equity Equivalent Investment Programmes (EEIPs). Instead of handing over shares to a well-connected local partner, a company like Starlink could invest millions into local coding schools, technical training, or subsidized hardware for schools.
This creates actual broad-based empowerment – the kind that builds skills and infrastructure – rather than just shifting paper wealth.
THE BOTTOM LINE
The great sacrifice to end apartheid was a fight for access – access to the ballot box, access to land, and access to opportunity. But today, the South African government is using the language of that struggle to justify a policy that actively limits access to the most important tool of the modern age.
If Pretoria continues to choose rigid ownership quotas over universal connectivity, it will find that it has successfully redistributed the pieces of a shrinking pie. True empowerment in 2026 isn’t about who owns 30% of a company; it’s about making sure 100% of your citizens can compete in the global marketplace.