Editor's Note: Beyond Musk and Trump: South Africa's path to economic resilience

In the face of Ernest Roets, Elon Musk, and United States President Donald Trump: Is it business as usual? That would be a resounding no. Yet all one can do is keep calm and carry on - to make money despite the disruption and grow one’s bottom line, to hold one’s head up high and say we are South African and stop messing, or “kaking”, on our national sovereignty.

Unfortunately, as the global chessboard of politics sees its horsemen stomping and charging in unpredictable moves, the undeniable fact remains: America is broke. “It’s the economy, stupid.” People are distracted by Musk's chainsaw moves and Zelensky White House "diplomacy" instead of heeding what Musk is saying. Every decision Musk makes aims to cut the US deficit by $1 trillion (R18tn), and clearly, the end justifies the means.

Billionaires don’t become that wealthy without wielding an unpopular axe and being ruthless—whether it’s saving America, saving the world before Ground Zero, or heading to Mars. While the Department of Government Efficiency (DOGE) wags its tail on the hunt for cost savings at any cost, US policy is no doubt driven on a Grok 3 algorithm set in unhinged mode with a prompt "save money, but distract. Big balls". When your cash reserves are depleted, playing fair goes out the window. So, I find myself a bit surprised that others are surprised by the US’s actions. They are broke. Go figure.

Recently Musk and Starlink failed to recognise South Africa’s regulatory stipulation that multinationals allocate at least 30% equity to black ownership. It’s hypocritical. Trump demands joint mandates requiring 50% US ownership of Chinese-owned TikTok in America. What’s the difference? Canal+ faces the same regulatory hurdles in its MultiChoice takeover in South Africa and is working with them, as have countless other firms that have invested in South Africa. Investors are used to analysing risk and different country policies. We mustn’t forget that.

Misinformation and investor confidence

Trump and Musk have misrepresented the facts of South Africa’s expropriation policy. To this end, I have even written an article for The Globalist to rectify this misrepresentation, because the time to speak up from a South African perspective is now - on the global stage - to prevent Trump and Musk’s distorted truth from festering. Into this toxic mix, the Tucker Carlson show and Roets add fuel to the fire of misrepresentation of South Africa’s government policies.

This comes just as the Government of National Unity (GNU) has visibly restored confidence among chief executive officers of companies listed on the Johannesburg Stock Exchange, who are optimistic about 2025’s prospects. 

While the US stirs geopolitical trouble globally, it increasingly appears that South Africa is being singled out.

On one hand, South Africa fears losing the African Growth and Opportunity Act trade deal with the US, which would cost us billions in funding and result in thousands of jobs being shed. Given recent events, it is unlikely this deal will survive.

On the other hand, there is concern that the surge of investor confidence in the country following the GNU’s formation will stall amid the wave of misinformation being perpetuated on X. However, one would hope investors are savvy enough to read the room; it’s not just South Africa that is being painted like Picasso, the rest of the world is too. Distorted narratives are the order of the day, with each recipient left feeling misrepresented globally.

While Roets inhabits his own reality—and I, personally, as a white South African of British descent, and simply as a South African, feel aghast at this wasp’s nest of half-baked lies he is spreading—I must confess I got as far as Roets ripping into Mandela before becoming too upset to continue listening. Mandela was a great man who paved the way for peace and reconciliation.

Yet some on the global stage are lapping up this narrative. Do not for one moment forget the harm and corruption epitomised by Bell Pottinger. The London-based firm ran a secret campaign to stir racial tension on behalf of its billionaire clients. Having weathered that infamous era of manipulated narratives serving hidden agendas, South Africa now faces Round Two - and a fresh kick in the teeth. National outrage is palpable. While I find the United Kingdom’s The Guardian reporting on Musk twisted and misleading (and should not get airtime), there is a kernel of truth in its identification of Trump’s targeting of South Africa as tied to Musk and a coterie of wealthy US oligarchs—“all of whom, in some way or other, grew up in South Africa as children.” These men were dubbed the “PayPal Mafia” by The Guardian.

Last month, Nedbank’s chief economist, Nicky Weimar, offered sound advice, suggesting that in the face of US aggression, South Africa must put its head down and resort to quiet diplomacy. However, she warned that the trade wars unleashed by Trump will stoke global inflation, ultimately hurting America as well as other economies. Stock markets are swinging wildly, struggling to absorb Trump’s discord, with billions made and lost. Investors are keeping a wary eye on late-night posts on X, ranging from Executive Orders to musings on the superiority of plastic straws over paper. (I hate paper straws. Great policy change.)

Investment

But as the US inflicts economic damage that is unnerving, what can the world do? It will hurt, that is undeniable. As global leaders scramble to chart the way forward, perhaps Europe needs to throw South Africa a bone and stop causing issues with citrus exports and the like. Global leaders should bypass the US’s discord by exploring ways to lower trade barriers and generate investment among themselves. How can BRICS act more cohesively and the African Union ? While the US remains the top dog at the global table (just not at South Africa’s Group of Twenty table), it has effectively left the room. How, then, can world leaders adapt and partner up in the face of the US’s ruthless economic self-interest to “make America great again”? That is a question to ponder.

South Africa stands at a crossroads, battered by misinformation from billionaires like Musk and Trump, yet bolstered by the quiet momentum of the GNU. The US may be broke and thrashing about, but the world doesn’t stop turning.

Global leaders must see past the chaos - lower trade barriers, forge new partnerships, and invest with each other. If America’s ruthless self-interest is the new norm, then let it play out its gambit alone. South Africa, and indeed the rest of the globe, can ill afford to wait for the dust to settle. The time to act, to build, and to outmanoeuvre the bully in the room - because sovereignty isn’t just a word, it’s a fight worth winning.

Philippa Larkin is the executive editor of Business Report.
BUSINESS REPORT