Elon Musk’s Starlink: South Africa Drama, Trump Ties, and Future Revenue Streams
Elon Musk finds himself at the center of a complex web involving his company Starlink, South African regulations, and his relationship with former U.S. President Donald Trump. Recent reports paint a picture of shifting political landscapes and financial pressures impacting the tech billionaire's ventures.
The saga began with Musk claiming that Starlink, SpaceX's satellite internet service, faces hurdles in South Africa due to his race. As Musk stated, "I'm not black." However, South Africa's telecommunications regulator, ICASA, disputes this, asserting that Starlink simply hasn't applied for the necessary licenses. ICASA told the BBC in March that Starlink wasn't banned from the country at all. The nation's foreign ministry said Starlink would be welcome to operate in the country as long as it followed South African law. According to ICASA, Musk's company simply never submitted an application to operate in the nation.
Adding another layer is South Africa's affirmative action policies aimed at empowering its Black population after apartheid. These policies require companies to give local Black firms a stake in their operations. Semafor reported in February 2025 that the South African government was considering an exception for Musk's ventures, including Starlink. Bloomberg further reported that a deal was struck, partly to appease Trump, a close ally of Musk's. It's worth noting that both Musk and Trump have, in the past, pushed the conspiracy theory of a "white genocide" in South Africa, a claim previously debunked by Snopes.
Simultaneously, Musk is seeking new revenue streams amidst a backlash against his association with Trump. His support for Trump, highlighted by donations and his work as head of the "Department of Government Efficiency," has reportedly impacted Tesla sales. Tesla, whose stock makes up most of Musk’s $370 billion net worth, saw its sales slump by a record 13 percent in the first three months of this year, and its profits plunged by more than 70 percent. The drop apparently stemmed from prime market losses in Europe and the United States, in part due to protests targeting the company's vehicles and dealerships.
Despite the backlash, Musk's ties with Trump have occasionally benefited his businesses internationally. Countries have reportedly been encouraged to approve Starlink to curry favor with the former U.S. President. However, even this alliance appears to be cooling, with Musk's influence in Washington waning as his term as a "special government employee" nears its end.
Musk's future strategy appears to involve scaling back his political involvement and focusing on his businesses. Notably, Saudi Arabia has approved Starlink usage, and Neuralink plans a clinical trial in Abu Dhabi. Still, Musk was in the Oval Office on Wednesday during Trump’s testy meeting with Cyril Ramaphosa, the president of Musk’s native South Africa, and also visited Capitol Hill and the Pentagon that same day.
Amidst swirling controversies and shifting alliances, Elon Musk's path forward remains uncertain. Can he navigate the complex intersection of business, politics, and international relations to secure the future of his ventures? Share your thoughts in the comments below.
Related issues news
Is Elon Musk from South Africa?
Elon Reeve Musk was born on June 28, 1971, in Pretoria, South Africa's administrative capital. He is of British and Pennsylvania Dutch ancestry. His mother, Maye (nu00e9e Haldeman), is a model and dietitian born in Saskatchewan, Canada, and raised in South Africa.
Is the South African president?
Matamela Cyril Ramaphosa (born 17 November 1952) is a South African businessman and politician serving as the 5th and current President of South Africa since 2018. A former anti-apartheid activist and trade union leader, Ramaphosa is also the president of the African National Congress (ANC).
