California: Ramaphosa Targets AI Under Pressure on BEE

The South African president is set to spend a week in California to woo major tech players and capture a share of the $650 billion invested in AI this year. This initiative comes as Washington has restricted visas, halted PEPFAR funding, and removed Pretoria from AGOA, amid controversy surrounding BEE requirements. Meanwhile, a lawsuit brought by Sakeliga targets the telecom regulator, and SpaceX is putting $110 million on the table in exchange for a relaxation of the rules.

Restricted Visas, PEPFAR Halted, and AGOA: Washington Takes a Tough Stance

U.S. authorities have imposed visa restrictions on South African officials deemed responsible for "government-sponsored discrimination." Washington has also ended its funding for the PEPFAR program in South Africa, which had invested $8 billion over twenty years for HIV/AIDS treatment in a country with the highest number of cases in the world. Pretoria has also been removed from the AGOA preferential trade program, an exclusion linked to the current deadlock. Ambassador L. Brent Bozell III stated that "the time for dialogue is over" following South Africa's lack of response to U.S. requests for regulatory reforms and warned that mandatory local ownership transfers under BEE are hindering "billions with a B" of American capital. BEE is a policy aimed at addressing the injustices related to the country's racist past.

In Court, Sakeliga Challenges the 30% Local Capital Requirement

In South Africa, companies operating in regulated sectors such as telecommunications and mining are required to transfer at least 30% of their local capital to black individuals in order to obtain a license. The business-friendly organization Sakeliga has initiated legal proceedings against the telecom regulatory authority, arguing that this provision represents a barrier to entry that prevents international groups like Starlink from accessing the market. SpaceX has proposed an alternative to the capital transfer to black South Africans, offering a $110 million investment in local infrastructure as well as free satellite internet services, valued at several hundred million rand, for rural schools.

Musk Denounces BEE and Links These Rules to Starlink's Halt

Elon Musk has described the local ownership requirements in South Africa as "openly racist" and claims that these rules explain why Starlink is not operational in the country. Cyril Ramaphosa's tour will take him to the region associated with the entrepreneur, amid a regulatory conflict with Pretoria, presented as part of a growing diplomatic rift with Washington.

AI Objective: Meetings with Google, Cisco, Palo Alto Networks, and Microsoft

Cyril Ramaphosa is set to arrive in California this weekend for a week dedicated to AI, with a launch scheduled for Monday at the Silicon Valley & the World summit. Among the planned meetings are discussions with Google, Cisco, Palo Alto Networks, and Microsoft. He will be accompanied by eight government members, including those responsible for Finance, Trade, Energy, and Communications, with the aim of securing a share of the $650 billion in capital investments associated with AI this year. According to his spokesperson Vincent Magwenya, Pretoria's strategy aims to attract these investments while ensuring the preservation of digital sovereignty, political independence, data protection, and responsible governance of artificial intelligence.

Despite Political Tension, Economic Flows Persist

The trip comes as Washington intensifies its pressure on Pretoria's internal policies and diplomatic choices, and the visit deliberately avoids a potentially cold reception in the U.S. capital. Despite this context, the value of trade between the two countries has increased in 2025, and industrial groups like Alcoa and Wabtec continue to invest despite tariffs, visa restrictions, and warnings about frozen investments.