South Africa’s Ramaphosa Pushes Musk Investment to Mend Strained US Relations

President Cyril Ramaphosa is in Washington this week to promote investment opportunities for Elon Musk’s companies, in what his spokesperson says is part of a broader effort to improve South Africa’s relationship with former U.S. President Donald Trump.

The visit comes amid ongoing tensions between the two countries, largely stemming from Trump’s criticisms of South Africa’s land reform policies and the country’s genocide case against Israel at the International Court of Justice.

Ramaphosa is scheduled to meet with Trump on Wednesday in Washington, where, according to government officials, he is expected to present a trade proposal aimed at resetting the bilateral relationship.

One possible deal being discussed would see Tesla, led by Musk, a known Trump ally, receive favourable tariffs on imports into South Africa in exchange for building electric vehicle charging stations across the country.

The initiative represents a calculated diplomatic move, though it comes against the backdrop of a public rift between Musk and Ramaphosa’s administration.

Musk, the South African-born tech billionaire, has previously accused South Africa of having “openly racist ownership laws” in response to a tweet by the president. He also claimed that Starlink, his satellite internet provider, is barred from operating in South Africa because he is “not Black,” a claim that South African officials have firmly denied.

In reality, Starlink’s absence from South Africa is due to the country’s Black Economic Empowerment (BEE) regulations. These rules require that communication service providers be at least 30% owned by historically disadvantaged groups in order to obtain an operating license.

While Starlink operates in 17 African countries, including South Africa’s neighbors Namibia, Mozambique, and Botswana, the continent’s largest economy remains excluded from its coverage.

The issue came to a head on August 14, 2023, when the South African government formally banned the import of Starlink kits, effectively blocking public access to the service.

As Ramaphosa engages in high-level talks in Washington, the push to involve Musk’s companies in South Africa’s economic development appears to be part of a broader attempt to navigate past diplomatic fractures and chart a more cooperative future with a key global partner.

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