Elon Musk eyes a deal with his native South Africa to let SpaceX offer Starlink service in exchange for a Tesla battery plant, report says

SpaceX CEO Elon Musk visits Capitol Hill to speak with lawmakers about the external audit committee President-elect Donald Trump appointed him to lead. · Fortune · Al Drago—Bloomberg/Getty Images
Paolo Confino

Updated Mon, December 30, 2024 

Elon Musk met with South African President Cyril Ramaphosa to discuss an agreement that would see the South African government loosen rules regarding Black ownership that impede SpaceX from offering Starlink internet services.

Musk is turning his newfound influence in U.S. politics to his homeland of South Africa.

SpaceX CEO Elon Musk met with South African President Cyril Ramaphosa to discuss easing certain regulations that would allow for Starlink satellites to operate legally in the country, according to Bloomberg.

Specifically, Musk would like to see South Africa loosen or remove a rule that would require Starlink to be at least 30% Black-owned by sharing equity with local partners.

A possible work-around that South African officials are considering would see foreign companies like SpaceX make guarantees for levels of local investment and jobs.

In exchange for updating these regulations, Ramaphosa hopes for broader investment in South Africa from Musk’s multiple companies. In particular, the South African president wants Tesla to invest in battery production in the country, according to Bloomberg.

SpaceX and a spokesperson for Ramaphosa did not respond to requests for comment.

Efforts to find an agreement between the South African government and SpaceX have increased recently, given Musk’s prominent role in U.S. politics after President-elect Donald Trump’s victory in the November election.

Throughout the election, Musk spent over $200 million to assist Trump’s campaign. In the weeks since Trump’s win, Musk has taken on a prominent role in certain governmental affairs. For example, Musk has been put in charge of an external committee meant to audit government spending. He also attended calls with foreign leaders like Ukrainian President Volodymyr Zelensky.

Starlink, which offers broadband services, is often subject to heavy regulations from countries around the world that aim to protect local internet service providers. Still, some countries have embraced the service as a means to increase internet access. In Africa, Starlink is available in Nigeria, Ghana, and Botswana. In November, Starlink paused new sign-ups for its services in Africa, citing a demand surge, according to an X post from Musk.

Despite having to battle against entrenched telecom companies and internet service providers that are often protected by legislation in their local markets, Starlink has made significant strides in expanding its reach. It is now found in more than 100 countries, and some of them—such as Ukraine and Yemen—are at the center of global geopolitics. SpaceX has also become a critical defense contractor for the U.S. government, a role which is under further scrutiny given Musk’s close relationship with Trump.

South Africa is not the first country to pitch Musk on a deal that combined expanded Starlink access and Tesla battery production. Indonesia, which uses Starlink to provide rural parts of Bali with internet access, asked Musk to build an electric vehicle battery plant for Tesla, a long-held priority for former Indonesian President Joko Widodo. However, he ultimately rebuffed the government’s offer because Indonesia was too far from Tesla’s manufacturing plants, according to the Wall Street Journal.

But Indonesian officials were not discouraged from trying to reach a deal with Musk. They are now set to offer a proposal to build data centers for the tech mogul’s artificial intelligence company, xAI.

This story was originally featured on Fortune.com