Photos: South Africa Presidency\YouTube Screenshots\Wikimedia Commons
South Africa is considering ways for Elon Musk’s companies to invest in the country without complying with the nation’s Black empowerment rules, three people familiar with the matter told Semafor.
South Africa’s government last year spoke to the billionaire about investing in his country of birth after Musk’s satellite internet service, Starlink, sought regulatory approval.
Under a Black economic empowerment policy aimed at redressing apartheid-era inequality, at least 30% of any foreign-owned company such as Tesla or SpaceX should be sold or donated to Black locals.
Government officials have discussed allowing Musk’s companies to sidestep these rules by using an “equity equivalent,” such as social investment in free internet connection to government schools, the people said.
This approach was first touted after President Cyril Ramaphosa met with Musk on the sidelines of the United Nations General Assembly in September. Government officials have discussed the options since that meeting, one of the sources said.
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