Lessons from Microsoft: what Starlink can learn about entering the South African market

“IN 2011 as MD of Microsoft SA I signed one of the first Equity Equivalent deals in the ICT sector worth about R500m. The Equity Equivalent deal paved the way for more than R25 billion Microsoft has invested in SA under the leadership of Lillian Barnard.

- WESLEY DIPHOKO

The R25 billion direct investment by Microsoft was about building of cloud data centres in SA in the process creating youth employment and buying material from local businesses. It was never about dishing that money to individuals” wrote Mteto Nyathi on the 25 May 2025 on X.

There's a lot to learn from what Nyathi has shared on this matter in view of current debate about Starlink.

The first lesson is that it is incorrect to suggest that it was impossible for Starlink to enter South Africa without handing over shares to a black business person. The post by Nyathi reminds us that a number of US tech companies entered the South African market without being required to do something impossible and unreasonable.

South African technology history tells us that Microsoft has been involved in a number of skills development initiatives that were aimed at empowering black people with technology skills.