South Africa is exploring a potential workaround to its Black economic empowerment rules to attract investments from Elon Musk’s companies. Under current regulations, firms that wish to operate in the country must allocate at least 30% of their operations to Black locals. However, government officials are considering an “equity equivalent” option—potentially in the form of social investments like free internet for government schools and police stations—to meet these requirements and pave the way for Musk’s companies to operate in the country. This proposal comes amid heightened tensions with the US over South Africa’s land expropriation policies. It will almost certainly be criticized by the radical leftist party, the Economic Freedom Fighters, which recently accused Musk of being an imperialist who seeks to undermine South Africa’s sovereignty.
Source: SEMAFOR