Minister and senior govt officials reveal real reasons why Trump is punishing South Africa: Elon Musk puts Ramaphosa on checkmate!

Johannesburg – The South African government, opposition parties, and leading business figures are in a frantic race against time to resolve a rapidly escalating diplomatic crisis with the United States, following a week of high-stakes developments.

The Sunday Times has learned that a series of meetings have been held this week, resulting in several proposals being put forward to the government in an attempt to de-escalate the situation. These proposals reportedly include making compromises on key issues raised by the US and its close ally, Israel.

The crisis was triggered by an executive order signed by US President Donald Trump on Friday, citing the Expropriation Act, South Africa's genocide case against Israel at the International Court of Justice (ICJ), and its close ties with Iran as reasons for halting all aid and assistance to the country.

Sources within the government believe that Trump's actions are designed to force South Africa to: withdraw its case against Israel at the ICJ; reverse its decision regarding the Taiwanese liaison office; reconsider its relationship with Iran; reconsider its role in the war in the Democratic Republic of the Congo (DRC); and allow Elon Musk's Starlink internet service to operate in the country without complying with Black Economic Empowerment (BEE) laws.

In response, President Cyril Ramaphosa is reportedly planning to dispatch envoys to Washington in an attempt to persuade Trump to reconsider his decision. Business leaders are also expected to engage with their US counterparts, particularly those with connections to Musk, who has emerged as a powerful figure in Washington.

A high-level meeting is scheduled for tomorrow to formulate a comprehensive strategy before the government delegation departs for Washington. The Democratic Alliance (DA), a partner in the government of national unity, will also send its own delegation to engage with US decision-makers.

The DA has previously sent multiple delegations to the US as relations between Pretoria and Washington deteriorated, fueled by threats to exclude South Africa from the Africa Growth & Opportunity Act (Agoa) over its relationships with Iran, China, and Russia, as well as its stance on Israel.

Concerns are mounting within the government and business community that sustained hostility from the Trump administration could trigger a collapse of the Johannesburg Stock Exchange (JSE) and the rand, plunging the economy into a severe downturn.

Ramaphosa's spokesperson, Vincent Magwenya, stated yesterday that the government would engage with the Trump administration while maintaining its sovereignty. "It is now abundantly clear that the issues in dispute are no longer confined to the signing of the Expropriation Act," he said. "Other issues have since emerged. Our stance against the genocidal state of Israel and subsequent action taken at the ICJ, our G20 theme of equality, solidarity and sustainability, seem to have angered some in Washington."

Magwenya also pointed to Secretary of State Marco Rubio's recent announcement that he would boycott the G20 foreign ministers meeting in South Africa later this month, citing the agenda's conflict with Trump's rejection of "diversity, equality and inclusion". He added that "the imminent relocation of the Taiwanese liaison office has also been flagged. All of the issues have also been laced with complete lies and distortions about our country." The South African government has requested that the liaison office move out of Pretoria by the end of March.

"The G20 theme, for example, reflects both who we are as a country as well as our aspirations for our continent Africa, the Global South and the world as a whole," Magwenya said. "The G20 is not only South Africa's G20, it's for all participating member states and the world at large. We will ensure its success and trust that all members will work together with us to deliver a successful and long-lasting, impactful G20."

Magwenya emphasised that South Africa is an independent, sovereign constitutional democracy with policies aligned with its founding values and constitution. "Even in the face of disagreements, they must at the very least be respected as such. As the president stated during his state of the nation address, we are not going to be deterred or bullied. We are also not going to lose focus from what we have to do and achieve as a country."

Compromises are reportedly being considered, particularly regarding Israel, with suggestions that South Africa could tone down its criticism of the Jewish State. However, senior government officials believe that only a complete withdrawal of the ICJ case would satisfy Israel and the US.

Regarding Starlink, the government is exploring alternatives to the 30% BEE stake requirement. Senior government insiders suggested that appeasing Musk might mean compromising "on certain key fundamentals and principled; legal, legislative, some may even touch on the character of who we are as a nation".The government insiders believe Musk is using his influence and close ties with Trump to force South Africa's hand on the issue. They said Musk's powerful position helped to explain why South Africa had been in Trump's crosshairs since he began his second term.

One government official said attempts so far to explain South African policy and clear away misconceptions – as the president tried to do in his phone call with Musk – had not worked and it was time to negotiate compromises. The official said Trump and Musk were transactional businessmen who saw issues in terms of deals to be negotiated.

"That deal of [Musk's] that has collapsed because of the BEE component… is one of the biggest triggers for him," said the source. "Until South Africa relents and allows him to bring Starlink here without satisfying the BEE component, he's determined to show us who's boss. And that means using Trump to hit us daily with nonsense based on things that he knows for a fact are not happening here."

A cabinet minister who asked not to be identified agreed with this view, stating, "Elon would do anything to exert political pressure to get Starlink in South Africa while maintaining his current ownership structure. He has become emboldened since Trump came into office because of his proximity to Trump."

Musk recently tweeted at the Presidency, asking, "Why do you have openly racist ownership laws?"

Starlink recently withdrew from Icasa regulatory hearings concerning its proposed satellite services licensing framework.

One possible compromise being considered is that Starlink commits to local manufacturing of its equipment, using locally sourced products, instead of giving away a 30% BEE stake. Another trade-off could involve Starlink providing free internet connections at thousands of schools across the country.

"Icasa can impose as many conditions as it wants to make up for circumventing the 30% local ownership element," said the minister. "Icasa can say, 'connect 20,000 schools to the internet, connect this number of police stations, hospitals, and all of that. It can say train so many young people, appoint so many young women, youth, people with disabilities in business'."

Regarding the Taiwan issue, South Africa has reportedly given Taipei a deadline of the end of March to move its de facto embassy out of Pretoria, with the Taiwanese foreign ministry blaming Chinese pressure for the move.

The situation remains highly fluid, with South Africa facing a delicate balancing act between defending its sovereignty and addressing the concerns of a powerful US administration.