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0 News Ghana, Latest Updates and Breaking News of Ghana, News Ghana, https://newsghana.com.gh/elon-musk-sparks-controversy-over-south-africas-ownership-laws-amid-spacex-licensing-bid/
Elon Musk has ignited a political firestorm after accusing South Africa’s government of enforcing “openly racist ownership laws,” a remark that comes as his company, SpaceX, seeks regulatory approval to operate its Starlink satellite internet service in the country.
The billionaire’s criticism, posted on X (formerly Twitter), follows former U.S. President Donald Trump’s abrupt pledge to halt aid to South Africa over its land reform policies—a move that triggered a sharp decline in the rand’s value earlier this week.
The South African currency fell nearly 2% against the dollar in Asian markets Monday, reflecting investor jitters over Trump’s weekend declaration on Truth Social: “The United States won’t stand for it, we will act… I will be cutting off all future funding to South Africa until a full investigation of this situation has been completed!” While Trump did not specify the “situation,” his statement aligns with longstanding Republican criticism of South Africa’s land redistribution efforts, which aim to address apartheid-era inequities.
President Cyril Ramaphosa swiftly countered Musk’s claims, asserting on X that the recently passed Expropriation Act adheres to constitutional principles and does not permit land confiscation. “South Africa, like the United States… has always had expropriation laws that balance public usage of land and the protection of property owners’ rights,” he wrote, inviting dialogue with the Trump administration to clarify the policy.
Musk’s intervention, however, centers on a separate but contentious issue: South Africa’s requirement that telecom operators reserve 30% ownership for “historically disadvantaged groups”—a rule SpaceX argues effectively blocks foreign satellite providers like Starlink from entering the market. In a submission to regulator Icasa, SpaceX criticized the mandate, noting that while many global firms support Black Economic Empowerment (B-BBEE) initiatives through investments, their internal policies often prohibit local equity sharing. The company urged South Africa to adopt “equity equivalent” programs, which allow foreign operators to fund community projects instead of ceding ownership—a model used in the broader ICT sector.
The timing of Musk’s remarks raises eyebrows. The Tesla CEO, born in Pretoria, has increasingly waded into global politics, recently endorsing far-right parties in Germany and the UK. Critics argue his latest broadside against South Africa’s laws—framed as a defense of free-market principles—overlooks the nation’s complex history of systemic racial exclusion. Supporters, however, view it as a pragmatic challenge to regulations they claim stifle innovation and foreign investment.
The clash underscores a broader tension. South Africa’s push for economic inclusivity, designed to redress decades of apartheid-era discrimination, now collides with the ambitions of multinational firms wary of equity mandates. For SpaceX, which promises high-speed internet to underserved regions, the licensing hurdle threatens its expansion into a key African market. For Ramaphosa’s government, bending the rules risks backlash from voters demanding tangible progress on transformation.
As the rand stabilizes, the debate rages on: Can South Africa reconcile its redress policies with the demands of global tech giants? Or will regulatory rigidity—as Musk warns—deepen the nation’s economic isolation? With elections looming and foreign investors watching closely, the stakes could hardly be higher.
News Ghana, Latest Updates and Breaking News of Ghana, News Ghana, https://newsghana.com.gh/elon-musk-sparks-controversy-over-south-africas-ownership-laws-amid-spacex-licensing-bid/
