Elon Musk’s Starlink struggles in key African market

Elon Musk’s Starlink promised to revolutionise internet access and transform life for people in remote parts of the world. Many across Africa hoped it would help them overcome connectivity challenges caused by the limits of terrestrial infrastructure.

However, after its rollout in Kenya, one of Africa’s most dynamic digital economies, the initial enthusiasm faded. The country’s communications authority reported that Starlink lost a percentage of its subscribers in Q1 2025, as many switched back to local internet service providers (ISPs) they considered better value for money. 

Starlink’s Kenyan failure can serve as a cautionary tale to South African consumers. While many who live in rural areas (along with owners of safari lodges) see Musk’s technology as a beacon of hope. But the challenges presented by the reality of the country’s complex regulatory maze show a different reality. 

Starlink’s reality check

Starlink’s declining subscriber numbers in Kenya are easy to explain. The service costs far more than local ISPs, often delivers slower speeds than promised, and frequently leaves users disconnected. It remains uncertain whether South Africans will ever experience both the advantages and drawbacks of Starlink.

Musk has repeatedly failed to bring Starlink to South Africa, with the main hurdle being the Independent Communications Authority of South Africa (ICASA)’s rule that at least 30% of the company must be owned by black South Africans.

To bypass this obstacle, some South Africans are importing Starlink kits and using costly global roaming subscriptions to access the service. This grey market highlights consumers’ eagerness for Starlink and suggests it would gain even more popularity with an official, affordable rollout.

A tougher market awaits

While Kenya has been a challenging market for Starlink, South Africa could prove even tougher. The country has a rapidly growing fibre network supported by multiple providers in a highly competitive market.

For Starlink to succeed in South Africa, Musk will need to go beyond simply offering connectivity to remote areas. The ISP must match its competitors on both reliability and price in regions where fibre currently dominates.