South African President engages with Elon Musk amid U.S. funding threat

South African President Cyril Ramaphosa recently held a discussion with billionaire entrepreneur Elon Musk following former U.S. President Donald Trump’s announcement that his administration would halt financial assistance to South Africa over a controversial land expropriation law. The call, confirmed by Ramaphosa’s spokesperson Vincent Magwenya, came in response to growing tensions and misinformation surrounding the law and its implications.

Trump’s declaration, made on Sunday, stated that financial aid to South Africa would be suspended while the U.S. investigated allegations of land confiscation. However, Trump provided no details regarding who was affected and inaccurately claimed that the South African government was seizing land in ways that were “perhaps far worse” than reported.

The South African government has strongly refuted these claims, labeling them as distortions and misinformation. The new law, signed by Ramaphosa last month, allows the government to expropriate unused or underutilized land in the public interest but does not permit indiscriminate land confiscation. Even critics of the law within South Africa have stated that Trump’s claims are incorrect.

Elon Musk, a South African-born entrepreneur and a close associate of Trump, has been vocal in his criticism of the South African government. Musk has accused the government of being anti-white and has portrayed the law as an attempt to target white landowners. He has also claimed that South African authorities enforce racially discriminatory policies, including affirmative action laws that require partial Black ownership of businesses. Musk’s satellite internet company, Starlink, was denied a license in South Africa for failing to meet these regulatory requirements.

The financial ramifications of Trump’s proposed funding cut are significant. The U.S. currently provides nearly $440 million annually to South Africa, with the majority of the funds supporting the world’s largest HIV/AIDS program. South Africa has the highest number of HIV-positive individuals globally, with over 8 million people affected and 5.5 million relying on antiretroviral treatment. A reduction in U.S. aid could severely impact these efforts, given that the U.S. funds approximately 17% of South Africa’s HIV program through the President’s Emergency Plan for AIDS Relief (PEPFAR).

Ramaphosa’s outreach to Musk was seen as a strategic effort to clarify the law’s intentions and counter misinformation. Magwenya emphasized that South Africa aims to engage with the Trump administration and influential figures like Musk to ensure an accurate representation of the country’s policies and governance.

The land expropriation law is rooted in efforts to redress historical injustices from the apartheid era, during which Black South Africans were forcibly removed from their land and confined to designated areas. According to the most recent land audit, white South Africans—who make up just 7% of the country’s 62 million people—own approximately 70% of the land. The government insists that the new law is part of a broader effort to address these imbalances while ensuring property rights remain protected.

Despite Musk’s outspoken views on South African policies, he has previously engaged with Ramaphosa regarding potential investments in the country. Discussions have included topics such as regulatory challenges for Starlink and broader business opportunities.

The situation underscores Musk’s growing influence over U.S. foreign policy, particularly in Africa. His dual role as a business magnate and an adviser within the Trump administration has raised concerns about the intersection of private interests and governmental decision-making.

As South Africa navigates these diplomatic and economic challenges, it remains committed to engaging with U.S. leaders and influential figures to foster mutual understanding and maintain critical international partnerships.