Ramaphosa eyes business deal with Musk to ease tensions with Washington
Ramaphosa’s visit comes at a time when relations between the two countries have worsened during Donald Trump’s second term as US president.
South African President Cyril Ramaphosa is set to travel to Washington this week with a mission to improve strained ties with the United States, with talks expected to focus on potential business partnerships involving billionaire Elon Musk.
Ramaphosa’s visit comes at a time when relations between the two countries have worsened during Donald Trump’s second term as US president.
Tensions have risen over South Africa’s land reform policies, its legal action against Israel at the International Court of Justice, and Washington’s recent move to cut aid.
Last week, the US also granted refugee status to a group of white South Africans, claiming they face racial discrimination, a claim the South African government has rejected.
The two leaders are scheduled to meet on Wednesday, and officials in Pretoria have been preparing a trade package aimed at resetting the relationship.
One of the proposals being discussed could see Tesla receive favourable tariff terms on its exports to South Africa, in exchange for building electric vehicle charging stations across the country.
Tesla is led by Musk, a South African-born businessman who maintains close ties with Trump.
"(It) could be one of the points discussed," said Ramaphosa’s spokesperson Vincent Magwenya, responding to a query by text.
Another issue expected to come up is the licensing of Musk’s satellite internet service, Starlink. “Certainly, the issue will be discussed,” Magwenya said.
The US has recently encouraged countries facing tariffs to allow Starlink to operate, according to a Washington Post report citing diplomatic cables.
Musk has previously claimed that Starlink was blocked in South Africa due to his race, a statement officials in the country have dismissed.
South Africa’s telecom regulator said in March that Starlink had not even applied for a licence.
Musk’s remarks appeared to be aimed at the country’s Black Economic Empowerment laws, which require foreign-owned telecom firms to sell 30% of their local equity to historically disadvantaged groups.
