Key points:
- Ramaphosa called Elon Musk after Trump threatened to cut US aid to South Africa.
- The call was arranged by Musk’s father, Errol Musk.
- Trump’s comments about land confiscation triggered financial market declines in South Africa.
- Elon Musk accused South Africa of enforcing ‘openly racist ownership laws.’
- Errol Musk defended Trump’s stance, questioning US funding for South Africa’s HIV/AIDS programmes.
- Ramaphosa denied land confiscation allegations, stating that the law aims to correct racial disparities in land ownership.
SOUTH African President Cyril Ramaphosa reached out to Elon Musk on Monday evening after US President Donald Trump threatened to cut more than $400 million in US aid to South Africa over its land reform policies.
The call was arranged through Musk’s father, Errol Musk, who confirmed the details in an interview with Reuters.
‘I was asked if I can arrange a quick talk between Ramaphosa and Elon last night … so I did, and then they spoke a few minutes later,’ said Errol Musk, a 78-year-old engineer who resides in Langebaan, South Africa.
Ramaphosa’s office confirmed the phone conversation in a post on Musk’s social media platform, X, though officials declined to disclose details of the discussion.
Trump’s claims and market impact
The urgency behind the call followed Trump’s statement on Sunday, where he alleged—without citing evidence—that South Africa was confiscating land and treating ‘certain classes of people very badly.’
Trump’s comments triggered a nearly 2 percent drop in South Africa’s rand, along with declines in stocks and government bonds. The cost of insuring South African debt against default also rose to its highest level since August 2024, according to Reuters.
Trump’s remarks referred to South Africa’s new land expropriation bill, signed into law by Ramaphosa last month, which allows the government to reclaim land in the public interest—in some cases without compensation.
- The policy aims to address historical racial disparities in land ownership, where:
75 percent of South Africa’s freehold farmland is owned by white farmers. - Only 4 percent is owned by Black South Africans, despite them making up 80 percent of the population.
Elon Musk enters the debate
Following Trump’s post, Elon Musk also weighed in, accusing South Africa of enforcing ‘openly racist ownership laws.’
‘I can only imagine that Elon would have said (to Ramaphosa) “we want to help you but you have to quit this war on white people in South Africa,”’ Errol Musk told Reuters.
He also suggested that his son might have compared South Africa’s policies to Zimbabwe, where land seizures in the 2000s led to agricultural and economic collapse. However, Reuters could not confirm if Zimbabwe was discussed during the call.
Errol Musk backs Trump’s funding cut
Errol Musk, who claims to work in property development and for his son’s satellite company, Starlink, defended Trump’s threat to cut US funding to South Africa.
‘I would like to know why American taxpayers have to pay nearly $500 million a year for treatment for South African HIV sufferers. Why?’
In 2023, Washington committed $440 million in aid to South Africa, with $315 million allocated to HIV/AIDS programmes, which disproportionately impact Black and poor communities.
Ramaphosa defended the funding, stating that US support accounts for 17 percent of South Africa’s HIV/AIDS prevention programs.
Ramaphosa denies land confiscation allegations
In response to Trump’s claims, Ramaphosa reiterated that South Africa has never implemented forced land seizures.
‘We look forward to engaging with Trump to foster a better understanding of a policy designed to ensure equitable public access to land,’ he said.
Ramaphosa’s government has previously set a goal to transfer 30 percent of farmland to Black South Africans, but progress has been slow, with only 8 percent transferred as of 2018.
With Trump threatening funding cuts and Musk amplifying the debate, will this controversy escalate tensions between South Africa and the US?
