Johannesburg, South Africa – February 5, 2025
South African President Cyril Ramaphosa has addressed concerns about the land expropriation law raised by Elon Musk after the billionaire entrepreneur criticized the country’s new legislation. Musk, who was born in South Africa, echoed former U.S. President Donald Trump in opposing the law.
Why do you have openly racist ownership laws? https://t.co/tHWVsmB04F
— Elon Musk (@elonmusk) February 3, 2025
Ramaphosa Pushes Back
In a statement shared on X (formerly Twitter), Ramaphosa’s office confirmed that he had spoken with Musk to address “misinformation and distortions” regarding South Africa. The president reaffirmed the nation’s commitment to the rule of law, justice, fairness, and equality, emphasising that the new land reform policies align with constitutional values.
Musk had earlier accused the South African government of enforcing “openly racist ownership laws”, a claim that sparked widespread debate. He also promoted an unsubstantiated conspiracy theory suggesting that a “genocide” is being committed against White farmers in South Africa—an allegation repeatedly debunked by experts.
Musk’s Business Interests in South Africa
Despite his criticisms, Musk has previously engaged in discussions with Ramaphosa about expanding Starlink, his satellite internet company, in South Africa. However, regulatory challenges—including Black economic empowerment (BEE) ownership requirements—have complicated negotiations. Musk has reportedly lobbied for these rules to be relaxed to facilitate Starlink’s entry into the market.
Trump’s Threat and Market Reaction
Trump, meanwhile, warned that the United States could cut financial support to South Africa due to the new land policy. The legislation, similar to laws in several other countries—including the U.S., allows the state to expropriate land in the public interest, with some cases permitting expropriation without compensation.
Following Trump’s comments, the South African rand weakened by 2% against the U.S. dollar on Sunday. However, by Tuesday, the currency had recovered, stabilising for the week.
Final Thoughts
The debate over South Africa’s land reform continues to draw global attention, with high-profile figures like Musk and Trump weighing in. As discussions unfold, the impact on international relations, investment opportunities, and economic stability remains a key area of focus.
