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Ramaphosa is feeling the Trump pressure

JOHANNESBURG, SOUTH AFRICA

THE Ramaphosa-Trump meeting at the White House this past week produced no substantive outcomes on trade agreements or efforts to resolve tensions between the U.S. and South Africa. It seems President Donald Trump’s aim with the meeting was to draw global attention to South Africa’s violent crime problems.

However, after meeting President Trump, President Cyril Ramaphosa reassured the press that US-South Africa engagements will continue. I was happy to hear that. I want the tensions resolved. I’m glad President Trump wants further engagements with South Africa.

Following the tense meeting, President Cyril Ramaphosa is feeling the pressure, in my observation. Two significant developments have emerged after he met Trump.

BEE requirements are being softened

The first is the softening of Black Economic Empowerment (BEE) requirements for satellite service companies, paving the way for Elon Musk’s Starlink to operate in South Africa. Previously, stringent BEE regulations hindered Starlink’s entry into South Africa’s market. That barrier is now being lifted, thanks to mounting pressure from Musk and President Trump on the South African government.

This shift carries economic implications. South Africa faces formidable challenges—low economic growth, soaring unemployment, and widespread poverty. South Africa’s Statistician-General, Pali Lehohla, has pointed out that poverty in South Africa is largely driven by unemployment and lack of education.

A stronger economy is the only path to meaningful poverty reduction. Without it, millions of unemployed South Africans—especially Black South Africans— are doomed for good. Official unemployment among Black South Africans stands at a staggering 37%, making them the most affected by poverty. They are also the most affected by violent crime. Every injection of foreign direct investment benefits both Black South Africans and the broader population.

Yet, while this policy adjustment in the satellite service industry is a step forward, it remains insufficient. A broader full repeal of BEE requirements across all industries should be the ultimate goal. Over the past fifteen years, BEE and excessive regulations have contributed to stagnant economic growth, failing to keep pace with population growth, and leaving millions of South Africans, especially Black people, jobless.

Critics like political economist Moeletsi Mbeki and myself have long opposed BEE, arguing that it does more harm than good. While its proponents claim it facilitates redress, a policy that stifles investment and increases unemployment does precisely the opposite. BEE stifles investment and contributes to unemployment. Redress cannot be achieved while millions are denied employment opportunities.

Trump and Musk’s pressure on the South African government is, in many ways, beneficial. Reform often emerges under duress. Without Trump’s influence, it is unlikely South Africa would be seeing this shift—one that could improve the country’s economic prospects and global reputation.

At present, there is no US-South Africa trade deal. Hopefully, after negations, we will see a good trade deal. South Africa’s fragile economy would benefit from a new trade deal with the U.S.

Lamola sends condolences to Israel

The second significant development was Foreign Minister Ronald Lamola’s unexpected expression of condolences to Israel during an interview on Christiane Amanpour’s TV show. This follows the assassination of two Israeli diplomats in Washington by a pro-Palestine man.

Lamola’s remarks were surprising given the ANC’s historically anti-Israel stance. South Africa officially blamed Israel for the October 7 Hamas attacks—a statement that many, myself included, found perplexing. The ANC further pursued its agenda by filing genocide charges against Israel at the International Court of Justice (ICJ). Lamola’s gesture of sympathy suggests that Ramaphosa is feeling the Trump pressure.

Looking ahead, South Africa must seek rapprochement—not only with the U.S. but also with Israel. The normalisation of relations with these two countries should be a priority for South Africa’s government, along with addressing terrifying violent crime, including farm attacks which affect farmers of all races.

2025 is shaping up to be a pivotal year for South Africa. The country stands at a crossroads, and the ANC’s leadership—flawed and increasingly exposed—is under the scrutiny of the international community. PM

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© PHUMLANI M. MAJOZI