Trump ally Elon Musk calls for sanctions against South Africa

Billionaire tech entrepreneur Elon Musk has sparked a fresh political and economic row after calling for international sanctions against South Africa over its Black Economic Empowerment (BEE) laws, which he described as "super racist."

Musk's criticism centres on regulations under the Electronic Communications Act, which require telecommunications license holders to have at least 30% ownership by historically disadvantaged groups. These include black South Africans, Indians, coloured people, women and people with disabilities.

The dispute has been amplified by Musk's efforts to introduce his satellite internet service, Starlink, into the South African market — a move that has stalled amid regulatory compliance requirements.

Musk has repeatedly resisted ceding equity in his companies to meet local ownership thresholds, arguing that such conditions amount to discrimination.

"South Africa won't allow Starlink to be licensed… simply because I am not black," he said in a social media post, adding that he had rejected alleged attempts to secure a licence through improper means.

He further accused South African policymakers of entrenching racial discrimination and warned that such policies risk undermining foreign direct investment and limiting access to high-speed internet, particularly in underserved rural areas.

Musk's remarks have intensified tensions with the South African government, which has firmly defended its empowerment framework.

President Cyril Ramaphosa dismissed Musk's claims, stating that BEE laws are designed to address historical inequalities rather than discriminate.

"When it comes to the social media brouhaha from Elon Musk, I pay very little attention… because I know our laws are not racist," Ramaphosa said.

He emphasised that the legislation is rooted in constitutional provisions aimed at redressing the legacy of apartheid-era exclusion, which disproportionately affected black South Africans, as well as other groups including women.

Ramaphosa also pointed to alternative compliance mechanisms available to foreign companies, such as Equity Equivalent Investment Programmes. These allow firms unable to meet ownership requirements to contribute through initiatives like enterprise development, education and community investment.

According to the President, hundreds of multinational companies — including major US firms such as Google, Amazon and Microsoft — are already operating within this framework.

The public exchange highlights a broader debate about balancing transformation policies with the need to attract investment in Africa's most industrialised economy.

While Musk argues that current regulations deter innovation and capital inflows, the South African government maintains that inclusive growth and economic redress remain central to long-term stability and development.