Talks between South Africa and SpaceX regarding the licensing of the Starlink internet service have come to a halt amid rising tensions with the Trump administration in the United States.

This pause in discussions follows increased public criticism from both Elon Musk and former President Donald Trump concerning South Africa's laws aimed at addressing racial inequality stemming from apartheid.

According to Bloomberg News, negotiations are expected to resume later, contingent on the resolution of the ongoing dispute between the US and South Africa.

SpaceX has been actively seeking a license to operate in South Africa but is facing delays due to the country's requirement for a mandatory 30% local ownership stake.

In its submission to the Independent Communications Authority of South Africa (Icasa), SpaceX argued that this local ownership requirement poses barriers for foreign satellite operators, despite their willingness to engage in empowerment initiatives.

In response to these challenges, South Africa's communications minister, Solly Malatsi, has requested Icasa to revise regulations to allow for equity equivalents, aiming to attract more foreign direct investment in the telecommunications sector.

SpaceX emphasized that aligning licensing regulations with the ICT sector code could enhance foreign investment and ultimately benefit South Africa's telecommunications industry.

Elon Musk's social media comments questioning South Africa's ownership laws have further escalated tensions, prompting a strong backlash from South African officials.

A spokesman for President Cyril Ramaphosa stated that South Africa would not pursue Starlink investments if Musk's views are perceived as unprogressive or racist.

Adding to the complexity, SpaceX withdrew from Icasa's public hearings on the new licensing framework, where it was scheduled to present earlier this month.

Sources familiar with the situation have disclosed these developments under anonymity due to the sensitive nature of the ongoing negotiations.

Overall, the future of Starlink's entry into the South African market remains uncertain as both parties navigate these geopolitical tensions.