Many in the US wish President Cyril Ramaphosa would do more than just get Elon Musk to invest in South Africa. They wish he could yank the prodigal son back to South Africa — due to his "divisive" nature, to put it mildly.
Too many US residents and citizens are fed up with what they see as Musk’s extreme right-wing and racist views and wish Ramaphosa could "take him back".
Our president wisely looks beyond the personal in Musk but at the benefits of wooing him.
As a percentage of GDP, South Africa’s expenditure on research & development (R&D) — activities mostly associated with the development of radical innovations and/or patents — amounted to 0.6% in 2021/22.
In 2012, the National Development Plan, the nation’s economic blueprint to 2030, set a target of 1.5% of GDP in R&D expenditure. A decade later, we were at 0.6%.
Some of our emerging market peers such as Brazil and the Czech Republic are doing much better with 1.15% and 2%, respectively.
An improvement in R&D of about one percentage point could boost South Africa’s economic output by about 0.13%, according to the Organisation for Economic Co-operation and Development.
Musk’s companies would boost foreign investment as his investing in South Africa would be an unrivalled message to the rest of the world that the country is open for business.
Also, internet penetration would significantly improve from his Starlink’s entry here.
R&D investment in South Africa is so low that chasing after Musk is a no-brainer.
With South Africa slow to bring in Starlink technology, a number of telecom providers are working to secure deals that will, it is hoped, put them ahead of the competition, particularly in outlying and remote areas where connectivity continues to be a challenge.
There’s a potential snag though. It’s a little risky dealing with Musk.
On first sight of a little frustration with our politicians or bureaucrats, we can expect him to blow a gasket.
Ramaphosa met with Musk on the sidelines of the UN General Assembly and said discussions on specific investments were still at an "embryonic stage".
"It is a whole process. Some people call it a bromance; it is a process of rekindling his affection and connection with South Africa. Of course it cannot be a love affair, it can be an investment relationship. He’s invested in many parts of the world; he is a top-layer business person who is very entrepreneurial, and we would like to get him more interested in South Africa," Ramaphosa said.
Getting Musk to invest is a project that Ramaphosa is committed to. The problem with the president is that he lacks commitment, which at best is only expressed in words.
"Commitment" was a big part of his lyrical arsenal during his trip to the US, mainly for the UN General Assembly.
"As a country," said Ramaphosa, "South Africa is committed to creating a supportive policy framework for the critical minerals sector."
His coalition cabinet is committed to boosting the economy and fighting poverty. It never ends.
Our bureaucracy is famous for red tape and dithering.
Ramaphosa might need to do what he does best: appoint a task team to ensure Musk is nabbed. I am not being facetious.
A small project team could make sure the president brings in the world’s richest man, with the potential to help South Africa shape up some of the demand-side aspects of the critical minerals discourse.
We have no real plan except for commitment from the president.
If Ramaphosa bagged a deal with Musk, it would boost local and foreign direct investment, an area that could benefit immensely.
The Bureau for Economic Research (BER) said business confidence in the "other services" sector improved in the third quarter of 2024, from 55 to 58. There has been a shift from the start of 2024, with six out of 10 respondents unsatisfied, to now nearly six out of 10 respondents being satisfied with prevailing business conditions, the BER said.
We now have to wait and see what Ramaphosa means when he uses his favourite verb: committed. What exactly does it mean to be committed to bringing in an investor like Musk? This is a good test for Ramaphosa and more tangible than his Monopoly game of trying to bring in R1-trillion worth of investment ... or is it now R2-trillion?
• Mkokeli is lead partner at public affairs consultancy Mkokeli Advisory
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