President Cyril Ramaphosa says SA’s sovereignty will be safeguarded as the government considers reported proposals to exempt Elon Musk’s Starlink from BEE requirements.
The exemptions, which have not been agreed to by the SA government, would see Starlink operate within the country without adhering to the 30% historically disadvantaged ownership requirement that SpaceX [Starlink’s parent company] would be obliged to comply with were it to invest in SA.
The proposals, first reported by Bloomberg citing three government sources, are expected to form part of discussions between Ramaphosa and Trump on Wednesday in Washington.
“We’re a sovereign country [and] a very proud nation. We preserve our sovereignty and will always do what’s best for SA,” Ramaphosa told reporters signalling that any potential concessions would be weighed carefully against national policy and economic transformation goals.
“We’re hoping to have a really good discussion with [President Donald] Trump and his fellow government colleagues,” Ramaphosa told reporters outside the SA embassy in Washington on Tuesday.
SpaceX had previously objected to the BEE requirements during public hearings of the Independent Communication Authority of SA (Icasa) on its proposed satellite services licensing framework.
An alternative to the BEE requirements would be equity equivalents that require companies to make social investments, for example in schools, clinics or community centres.
Fear not, South Africans are never humiliated … South Africans always go into everything holding their heads high [and] we are going to have a good meeting.
This would enable multinational companies to earn compliance points without the requirement to cede equity in their local operations.
SA-born billionaire Musk has argued that Starlink is unable to operate in SA because he is not black.
The pushback is part of a larger campaign against what Musk and others refer to as “woke policies” that include diversity, equity and inclusion initiatives, which they argue unfairly prioritise social justice over economic efficiency and individual merit.
The recently enacted Expropriation Act and broad-based BEE legislation have been cited by Trump, his SA-born adviser, Musk, and influential Republican legislators as reasons behind halting funding and the administration’s hostile stance towards SA. Musk has also been a vocal supporter of claims of white genocide in SA.
Wednesday’s meeting between Ramaphosa and Trump will be used by the SA delegation to begin resetting relations between Pretoria and Washington despite the antagonistic stance of the Trump administration.
“Fear not, South Africans are never humiliated … South Africans always go into everything holding their heads high [and] we are going to have a good meeting,” Ramaphosa said.
It remains unclear whether any deals will be signed during the meeting, which will include agriculture minister John Steenhuisen; minister in the presidency Khumbudzo Ntshavheni; trade, industry & competition minister Parks Tau; and international relations & co-operation minister Ronald Lamola.
Business Day previously reported that the meeting is expected to set the stage for a series of bilateral trade agreements in various sectors, including agriculture, energy and transport.
“We want to come out of the US with a really good trade deal and investment promotion … we want to strengthen those relations and consolidate good relations between our two countries,” Ramaphosa said.
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