Elon Musk's Starlink has proposed providing free high-speed internet to more than 5,000 rural schools across South Africa, potentially benefiting 2.4 million learners each year.

However, the R500 million proposal remains on hold as the satellite internet company faces a dispute over South Africa's telecommunications ownership requirements.

According to Cape Town ETC, the proposal was submitted in 2025 as part of Starlink's efforts to secure approval to operate in the country.

Free internet for rural schools

The proposed programme would provide satellite internet equipment and connectivity to schools in rural communities where traditional broadband networks have limited reach.

US Ambassador to South Africa Leo Brent Bozell III recently claimed that Musk was prepared to fund the school connectivity programme indefinitely.

The initiative would support the government's SA Connect programme, which aims to expand broadband access across the country.

In a June 2025 letter to Trade, Industry and Competition Minister Parks Tau, Starlink's senior director of market access, Ryan Goodnight, raised concerns about learners being unable to access digital educational resources because of limited internet coverage.

The main obstacle is South Africa's telecommunications licensing requirements.

Under the current framework, individual licence holders must meet a 30% ownership requirement involving historically disadvantaged groups.

Starlink wants to fulfil its empowerment obligations through an Equity Equivalent Investment Programme (EEIP) instead of transferring an ownership stake in its local operations.

This approach would allow the company to invest in education, infrastructure and development projects as an alternative to direct equity ownership.

Starlink maintains that it is not seeking an exemption from South Africa's Broad-Based Black Economic Empowerment (B-BBEE) legislation.

However, the Independent Communications Authority of South Africa (ICASA) has maintained that operators must comply with existing licensing rules.

What happens next?

The proposal has also faced political opposition.

In January 2026, parliamentary communications portfolio committee chairperson Khusela Sangoni Diko argued that Starlink should not undermine existing empowerment legislation.

She pointed to commitments by established mobile operators to connect more than 22,000 schools.

For now, regulatory changes would be needed before equity-equivalent investments could replace the existing ownership requirement.

The unresolved dispute leaves Starlink's proposed R500 million investment on hold, with millions of learners potentially missing out on improved access to online educational resources.