Ramaphosa Reportedly Planning to Appease Elon Musk by Allowing Starlink to Operate in SA Without BEE Partner

MUSK DEAL: There are reports that Musk will be appeased. Photo: GCIS

With South African President Cyril Ramaphosa in the USA to meet with President Donald Trump and other senior government officials, reports have emerged that there is a plan to appease Pretoria-born billionaire Elon Musk.

According to Bloomberg, the plan involves allowing Elon Musk to operate Starlink in South Africa without having to partner with a local BEE company.

The news agency claims that this move is aimed at easing tension between Musk, a key power broker in the Trump administration, who has repeatedly claimed that Starlink is not allowed in South Africa because of race laws.

Bloomberg also reported that the offer will come at a last-minute meeting planned for Tuesday night between Musk or his representatives and a delegation of South African officials travelling with Ramaphosa, and it based this on information sourced from three people familiar with the discussions.

It said this will be an alternative to the Black Economic Empowerment laws that in some cases require 30% Black ownership is not specific to Starlink and Musk, the people said. It would then be applied to all information and communication technology companies, including those from China and the Middle East, the news agency reported.

“A so-called Equity Equivalent option would instead involve investments in infrastructure or training, or providing Starlink kits to rural areas in order to help improve Internet access. The auto industry in 2019 signed up for a similar workaround that involved the largest car manufacturers — including BMW AG, Ford Motor Co. and Toyota Motor Corp. — setting up a fund to invest in bringing disenfrachised groups into the sector.”

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