South African President Cyril Ramaphosa has spoken with Elon Musk, the world's richest man, to encourage further investment in the country, according to a statement from the presidency on Wednesday. The conversation follows accusations by Musk on his social media platform X that Ramaphosa's government has "openly racist ownership laws."
Ramaphosa's spokesman, Vincent Magwenya, said the president is particularly interested in Musk's satellite internet service Starlink, which provides web access to remote locations. However, licensing for the network, currently operating in 17 African countries, has been delayed by South Africa's black empowerment regulations, aimed at addressing the legacy of racial inequality from apartheid.
The conversation comes after US President Donald Trump, who is advised by Musk, threatened to cut funding to South Africa, claiming the country was "confiscating" land via an expropriation act. The act, signed recently, allows the government to offer "nil compensation" for property deemed necessary for public interest, but only after attempting to reach an agreement with the owner.
Magwenya stated that Ramaphosa addressed the "disinformation" in Trump's announcement and Musk's accusations of racism, emphasizing that South Africa does not have racist ownership laws. Musk, who left South Africa in the late 1980s, may have been referring to the Black Economic Empowerment policy, which requires major companies, including foreign investors, to provide 30 percent equity to historically disadvantaged groups.
South Africa's telecoms regulator is holding a public hearing this month on regulations for potential operators, which are expected to influence Starlink's entry into the country.