Breakthrough on Starlink could open up Musk’s financial muscle in SA – Theo Venter

South Africa was abuzz yesterday following reports of a meeting between South African-born billionaire Elon Musk and President Cyril Ramaphosa in New York. Footage released by the Government Communication and Information System (GCIS) captured the two engaged in discussions in Ramaphosa’s hotel room during his attendance at the United Nations General Assembly. According to the Presidency, the talks centred around investment opportunities in South Africa. Prof. Theo Venter, a political analyst from the University of Johannesburg, told Biznews that the dynamics of Ramaphosa’s visit to New York shifted after the Musk encounter. Instead of focusing primarily on the international court case involving Israel and Palestine and the transformation of the Security Council, the meeting with Musk took centre stage. Venter emphasised that if a breakthrough on Starlink for South Africa is achieved, it could open up “Musk’s financial muscle to be more prevalent in South Africa in the future.” Additionally, Venter pointed out that this engagement with Musk could be strategically beneficial for Ramaphosa, given Musk’s backing of Donald Trump in the U.S. presidential elections.

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Extended transcript of the interview  ___STEADY_PAYWALL___

Linda van Tilburg (0:00)

It seems a new bromance is developing between Cyril Ramaphosa and Elon Musk. Footage released by the GCIS of their meeting shows them quite at ease with each other. Theo, what do you make of that?

Theo Venter (00:18)

Well, firstly, the big story of Ramaphosa’s visit to New York should have been South Africa defending its international court case regarding Israel and Palestine. Secondly, we are a crucial part of the reformation or transformation of the Security Council. That should have been the main news. But then Elon Musk entered.

I think that changed the dynamics of his visit to New York because, firstly, it aligns with Ramaphosa inviting businesspeople and indicating that South Africa is open for business. However, the situation with Elon Musk is a bit different. He is an ex-South African with strong views about what’s happening in South Africa. Specifically, the technology of Starlink is something rural South Africa would really like to implement. 

However, BEE (Black Economic Empowerment) regulations state that to bring that kind of technology into the country, there needs to be a 30% stake for South Africans, particularly black South Africans. I believe many discussions that took place in their meetings would have revolved around either finding ways to get around the 30% requirement or managing it effectively. I’m not sure which one, but definitely… If a breakthrough is made with Starlink, which is an internet technology, it could either be through finding a workaround or managing it in a specific way. This would open up Musk’s financial muscle to be more significant in South Africa in the future.

Linda van Tilburg (02:12)  

So that’s a good development?

Theo Venter (02:15) 

Yes, I think it is a good thing. We see Starlink satellites being launched from time to time, and there are usually pictures in the newspapers of several little lights in the sky. I know that South Africans are using it illegally because there are base stations in Namibia, Swaziland, Mozambique, and Zimbabwe. We’re trying to prevent that. I think the technology is quite interesting. If it gains traction, nothing can stop it. You would need to manage the implementation, but it cannot be stopped.

Linda van Tilburg (02:55)

What about the possibility of a BEE exception for Starlink?

Theo Venter (03:01) 

I think that is definitely something that will be considered, but the difficulty with BEE is clear. We have seen how exceptions can be exploited. The Guptas received these kinds of exceptions and ultimately exploited the South African government in several ways, leading to the immense costs of state capture. That is a considerable fear. Elon Musk is a different kind of person, and I want to add something regarding the Musk angle and the exception. 

Currently, support between Kamala Harris and Donald Trump is at a near 50-50 split. Some say it’s 49% for Harris, 51% for Trump; it’s truly close. If you look at the swing states, Trump has a slight advantage, and those swing states will determine the outcome because the decision won’t be based solely on the popular vote, as Hillary Clinton can attest. It will depend on who achieves 270 electoral votes. Now, Elon Musk has very firmly associated himself with Trump. 

In 2025, South Africa will take up the chairmanship of the G20. Every year, the G20 holds a summit, taking place in the country that chairs it, and it’s customary for heads of state to visit that summit. So, South Africa may have the summit next year and either invite President Trump or President Harris. That would be a very interesting situation. If you have a good relationship with Musk—who Trump has already said he would give a job in government to—it could be a strategic investment in case Trump becomes president.

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