South Africa’s Ramaphosa takes AI pitch to Musk's turf
Ramaphosa is likely to face questions about domestic ownership rules which Musk, who was raised in South Africa, has slammed as “openly racist” and cited as the reason his Starlink satellite-internet venture does not operate in Africa’s biggest economy.
Key points
- The News South African President Cyril Ramaphosa is due to land in California this weekend for a week-long push to court billions in American AI infrastructure investment.
- South Africa was recently also removed from the African Growth and Opportunity Act preferential trade program.
- Ramaphosa, whose itinerary includes meetings with Google, Cisco, Palo Alto Networks, and Microsoft, is bringing eight cabinet ministers, including his finance, trade, energy, and communications chiefs — in a bid to capture a slice of America’s $650 billion AI capital expenditure this year.
Brent Bozell III warned in recent weeks that South Africa’s mandatory local equity ownership transfers under Black Economic Empowerment laws, a policy designed to address dispossessions caused by South Africa’s racist past, are holding back “billions with a B” in American capital.
Additional details
- The value of trade between these two countries rose in 2025, industrial giants such aluminum producer Alcoa and transportation behemoth Wabtec keep writing checks despite tariffs, visa curbs, and Bozell’s warning that billions in investment are frozen over South African domestic policies.
- Notable SpaceX has floated a $110 million local infrastructure commitment alongside hundreds of millions rand in free satellite broadband for rural schools as an alternative to handing over its local equity to Black South Africans.
- The stand-off has triggered US visa restrictions on unspecified South African officials deemed responsible for “government sponsored discrimination,” led Washington to pull PEPFAR funding to the country, which poured $8 billion into treating the world’s largest HIV/AIDS caseload over two decades, as well as the AGOA ejection.
- Tiisetso’s view Ramaphosa’s flight to California deliberately skips a potentially frosty reception in Washington.
- The working visit, which kicks off on Monday at Semafor’s Silicon Valley & the World summit, unfolds against a deepening diplomatic row as Washington steps up pressure against Pretoria over everything from race policies to its foreign policy choices.
How this summary was made: extractive summary — built from the sources' own reporting. It is drawn only from the reporting of the sources listed below — read the originals for full detail. How we summarize →
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