Middle Nation South Africa Briefing

Okay. This is our second Middle Nation region discussion group briefing. We did one a couple of days back for West Africa, and now we're having our briefing on South Africa with sister Nisa to give us an update on the situation in South Africa. So I'll turn it over to you, sister.

Okay. And so assalamu alaikum, everybody. Thank you so much for listening, and I really hope that, you know, at the end of it, there'll be a little bit more information about what is happening currently. And I've only chosen two topics to discuss because this is currently what is, so to say, dominating the new space within South Africa. So the first thing that I will be speaking about is the suspension of talks about Starlink coming to South Africa now.

Recently, South Africa suspended negotiations with Elon Musk's Starlink, like, a day or so ago over compliance with black economic empowerment laws. Now this decision has sparked significant discussion, especially considering the potential benefits and challenges that Starlink could bring to our country. Or at the very least, they want us to believe that Starlink is the panacea of all Internet connectivity in rural South Africa, but reality is far from revolutionary. So let's first talk about BEE and and and licensing laws. Now South Africa's BEE or it's BBEEE policy requires foreign companies to have at least 30% local ownership to operate here.

Now the this aims to empower historically disadvantaged communities and promote economic transformation. Now we're talking about black people. We're talking about colored people. We're talking about Indian people, and Africans benefit from these laws. So this is also the race based laws or racist laws being referred to in the right wing narrative.

Now according to recent stats, about 1% of white South Africans are considered poor. That is a very low amount. So keep in mind, after apartheid ended, their wealth and possessions were not taken away. They kept it. And now back to Stalin.

Its reluctance to comply with our regulations has led to the suspension of discussions regarding its operations in South Africa. And, also, you need to keep in mind that they are not providing solutions, in South Africa as yet. The signal is blocked, but this is one of the reasons why Musk is targeting South Africa. So let's talk about the illusion of revolutionizing Internet connectivity. So while Starlink's, satellite based satellite based Internet does offer potential benefits, you know, it's not the sovereign remedy that some people would like you to believe.

South Africa has already we already have local companies providing satellite Internet services in any case, and that's not new. It's been here for decades. And those tailored to our unique needs and pricing structures. Now these providers understand the South African market, and they offer solutions that are affordable and effective. Now on top of that, Starlink's initial pricing was exorbitant with premiums around $500 a month.

Now nobody or almost nobody can can afford that, especially rural South Africa, and neither can most people in urban South Africa afford those type of prices. Now while prices have slowly over the years declined because people, you know, were saying that it's too expensive, that we will never be able to afford that. And who wants to spend? In South African terms, that's, like, between R8,000 to R10,000 a month on Internet. That's just not gonna do.

That's rent. That's groceries. That's electricity. That's all that type of things that people are not willing to spend on Internet just to be connected to the Internet. You know?

So it's not a priority in terms of or the the cost doesn't warrant people wanting to actually subscribe to Elon Musk's Starlink. Now even if Starlink were to bypass BEE requirements, the high costs and Musk's tarnished reputation would likely deter many South Africans from subscribing in any case. So regarding his the public sentiment, Elon Musk's reputation in South Africa has taken a nosedive, especially following his criticism of our land expropriation laws. And many South Africans view his comments as interference in our domestic affairs, which it is, and this leads to a decline in public trust. So at the end of the day, Elon Musk's opposition, to South Africa's land reform policies and our economic reform policies reveals his resistance, to addressing past injustices, injustices from which he himself has benefited from.

So that's my segment on Stalin. I'm gonna move on to congress, the congress letters to Trump to remove South Africa from Goa. So my next topic is the recent developments, concerning the African Growth and Opportunity Act and South Africa's trade relations with The United States. Now, AGOA has been, a cornerstone of South Africa's trade relations with, America and granting duty free access to Americans' markets. Now in 2022, approximately 25% of South Africa's exports to The United States, which was valued at about $3,600,000,000, benefited from Goa's policies.

So, however, recent letters from The United States Congress Members urge president Trump to exclude South Africa from Goa, which cites concerns over our land expropriation act, BEE or BBEE, as well as our relationship with China, which is hilarious since it is so hypocritical because The United States itself maintains substantial trade relations with China. In 2022, United States China trade reached approximately $690,000,000,000, Underscoring the complexity of global trade dynamics, South Africa's trade with China in the same year was valued at $21,000,000,000, highlighting our significant economic engagement with the global South. Now at the same time showing that The United States Of America trades at a much larger scale with China than we do, yet they still have an issue with the relationship that we are fostering, with China. Now this disparity raises questions about the consistency of The United States stance. While The United States continues its extensive trade with China, it scrutinizes South Africa's diplomatic choices, revealing a double standard that warrants, close examination.

Now let's talk about economic implications. If South Africa is removed from, Agawa, so the potential removal from Agawa poses, substantial economic risks for South Africa, particularly in key industries such as the automotive industry where exports to The United States reaches about reached 1,600,000,000.0 in 2022 for agriculture six sectors, such as citrus, grapes, wine, which rely heavily on The United States markets, would face significant challenges. And mining also falls under this, platinum, gold, chromium, steel, and so forth. America is 100% import reliant in this industry, and South Africa supplies 40 to 60% of the imports of various minerals. Now keep in mind that these industries are dominated by white monopoly capitalism.

So that is the demographic that would lose out the most, which realistically would trickle down to nonwhites who could lose jobs. However, we do have, as a country, alternative trade partnerships. Now while the loss of a goal would be challenging, I mean, if you can keep it and still build on the side, that would be ideal, and that is what South Africa wants to achieve where you can freely trade with any country, and that is our right as a sovereign nation. So while the loss of or potential loss of a goa would be challenging, South Africa has viable alternatives such as BRICS. We all know that trade is increasing among BRICS nations.

The block is growing year by year. Trade is increasing more than just trade. Other aspects are also co being cooperative about within the block. Another partnership that we do have is the African Continental Free Trade Area, which is the AFC TFTA. This agreement facilitates intra Africa trade, and it reduces reliance on external markets, which is a good thing.

Another partnership that we do, enjoy is with the European Free Trade Association, IFTA, and The United Kingdom. So existing bilateral agreements can be leveraged to mitigate, potential losses from a Goa exclusion. And the EU has just confirmed that South Africa and EU trade relations remain reliable and predictable. So these are America's allies who have potentially or politically begun distancing themselves from America. And since America's actions have impacted their economies, they most likely wouldn't want to mess with their economy for America's tantrums.

So there's no doubt that America America's placed a target on South Africa's, back because of the ICJ case. Now relations in BRICS and Iran must personal vendetta. And while the potential removal from Agawa presents challenges, It also serves as a catalyst for South Africa to strengthen its trade relations within the global South. Now by diversifying our economic economic partnerships and focusing on regional integration and simultaneously strengthening international cooperation. We can reduce reliance on only on on any single market where no other country can hold you to ransom, and it it shouldn't be able to shake your economy if a country decides that they no longer want to trade with you.

So the truth is that the ones running scared in South Africa are the same ones who benefited from apartheid. And in reality, while The United States may feel threatened by South Africa's expanding global partnerships, this is a testament to our strategic autonomy, our influence within Africa as well as within the global South, and, our ability to navigate the complexities of international trade. And at the end of the day, removing South Africa from a Goa would only lessen America's, influence over the country, and it diminishes its bargaining power. So they would be at a loss for it minus our minerals and the influence. And and we are strategically in the right place, especially in terms of where Africa is concerned.

They do need us to be working together with them. So this shift could be more beneficial to South Africa, especially if it replaces these trade agreements with nations that respect sovereignty and act as true partners rather than America acting like a a broke bully, a a a broke playground bully trying to steal your lunch money. Thank you so much for that.

With with regards to this the the last story, we just have a few minutes. You know, all of these types of policies, this this, like, threatening to remove them from Agua and as well as the the the tariffs policies that Trump is putting in and the threaten threaten and sanctions also against South Africa and sanctions against other countries. Obviously, there's as you were sort of mentioning I mean, you're talking about how there can be other trade partners for South Africa. But also those even those other trade partners could end up just being conduits for South Africa to still sell to America, could still export to America just through a third party. Yes.

Same thing the same thing that Russia is doing with their oil and gas. I mean, now India is an actual exporter of oil, which makes no sense at all. So this is this is almost a way of forcing South South trade, increasing South South trade, where maybe America will say, we're not gonna take anything from South Africa, but South Africa could send it somewhere else, and then they could send it to America. It's just a way of of actually increasing intra South trade. Don't you think?

I agree 100%, but yes. No.

No. I'm sorry. Sorry. Just there's a delay, I guess, in the sound. If if South Africa wasn't selling the minerals, for example, if they weren't selling the minerals to America, forget about where America might try to get those minerals from otherwise, to whom else could South Africa sell them?

There are a lot of strategic partners that they could sell them to because it is like, for example, India. India is good with tech because the a lot of the minerals that gets used in America is for tech. Weathers manufacturers even to Russia. Russia could even buy. Even China could buy because these are manufacturers using steel, using chromium, using platinum for the tech industry, for the military industry.

So those are places where they can sell them. That is within just the the, you know, the the the bigger nations of the British countries. Even in Africa, it can be sold. There could be instances with regards to barter is not the right word, but whatever minerals that South Africa doesn't mine, we could get from other African countries and vice versa. So that type of trade and inter trade within African nations would benefit Africa as a whole.

I do think South Africa should put a lot more focus on trading within Africa besides with BRICS nations, but with Africa itself increasing more than what it has before and really push to uplift within Africa and do that inter you know, intertrend when it comes to minerals because Africa regions, we all know that you can find certain minerals within certain areas and certain regions, and and most of it is needed in terms of technique, you know, in technology and creation and the production of technology. And because the world is moving towards more a technology centric world where every household has technology regardless of what it is, that will only increase. And you will find that with even within Africa, markets would open, innovation will open. We can have even the technologies being produced within Africa. This South Africa has currently, they have a factory creating or manufacturing cell phones.

It's some brand that they have in Bratz, which is the first and only one that is being produced, which is away from the Chinese market. So it shows you that once we utilize the the skills and the resources, including human resources in Africa that we can do that amongst each other. And together, we can supply, you know, without overseas or with or out of the continent, so to say.

And if they if they increase the the Intra Africa trade and the South South trade, then the next step would be to make to to conduct that trade in local currencies, not in the US dollar?

That would be ideal because that would mean that our currencies would have, obviously, the value would increase. And that doesn't mean that, we are trying to do away with the dollar and do one currency. There's nothing wrong with using the currencies that we have and just trade what each other's each other's currencies. That is part of sovereignty in any case to be able to dictate how we want to do things, and that is ultimately what we want to be able to do. So we don't expect that everybody must work on the same currency because that's where monopoly comes in just like The United States Of America has a monopoly where the dollar is dominating, and as we do not want that.

We want a multipolar world, and that includes being able to use your own currency, and it has value. And and everybody has more or less the same value. We we understand that it can't be on par with each other because there's there's little, you know, different variables that goes into what predicts the your your currency is valued at. But that would increase the value as long as we can trade amongst each other and which is good for the people of that country because that means your cost of living would then be more affordable if you have a currency that is wanted by other countries.

Absolutely. And in fact, I don't think I don't think BRICS even has any plan for actually a, like, a BRICS currency. No one is actually talking about having a single currency for the BRICS nations or even outside of BRICS. No one is actually talking about having a single currency for Africa. No one's serious anyway.

No one no one who's in a position to make those types of decisions. I think everyone actually understands from the experience of the Eurozone that it's actually a very bad idea to have multiple different economies operating on a single currency. I don't think anyone's talking about that. I think that they they have talked about having a a a a, a, you know, just a unified trading system. Only this, not not a single currency.

This is this is a kind of a a red herring that that Trump has talked about and others have talked about, saying that they're gonna go after anyone. The the issue isn't what currency this country and that country choose to trade in or or that they have to trade in a particular currency. The issue is not using the dollar. That's the issue. The issue is de dollarization.

Whatever whatever currency you choose to use, whether you even if you choose to use the yuan or you choose to use the ruble or you use your local currencies, any of those options is superior to using the dollar. There's no reason at all why South Africa should be trading with any other African country using US dollars. It makes no sense. There's no reason why America should have any finger in that pie.

In fact Yeah. Please. After Trump made that statement, for the life of me, I cannot remember. I think it was the Russian it came from Russia's statement was made that Brits is not looking at a single currency, that they Brits is encouraging countries to trade within, you know, using their own currency or each other's currency. So after he made that statement, Brits that one of the countries of Brits, and for the life of me, I apologize.

I can't remember which one it was, but, definitely, I did see that they did say there won't be a single currency. That's not what they're talking about. They're talking about and they're encouraging using each other's can currencies.

Yeah. In fact, they've clarified this a number of times. They they've actually stated it a a number of times that no one is actually interested in a single currency. This is this is again, it's kind of like like The US always thinking that everything has to be done the way that they've done things. And so they assume that everyone is just going to you know, if if The US is receding from power and there's going to be a new sort of global hegemon, even if it's a multipolar type of a hegemon or there's collective hegemons and so on, they they always think that someone else has to do things exactly the way that they did things with them.

No one is interested in doing it the way that they've done things. Just one quick question before we have to end the meeting. With regards to the to the Starlink issue, do you think that this personal issue of Elon Musk, this personal and financial issue of Elon Musk, is actually at the root of all of the political animosity being expressed by the Trump administration against South Africa?

100%. I believe it is a personal vivid data. Remember, Trump sorry. Elon Musk is a beneficiary of that, system where the color of his skin allowed him, tremendous privileges, and they were rich, and his family is still rich. And, he does not like the feeling of things being recalibrated and rebalancing out because that is what these laws are about.

It's about recalibrating. It doesn't mean we want to subjugate white people. It just means bringing those people that you know, or as or attempt to at least bring them up to a level that is within, that brings dignity and whatever and give them access to opportunities. Now the problem is that, Elon Musk does not like that. He does not.

His ideology is white supremacism. He is he might not say it out loud, but you can see it in the way that he acts. You can see it in the way that his beliefs are. And, his family background is from stems from racism where his father did an interview recently with a podcast, a popular podcast in South Africa, and said that his grandfather, his grandparents, his mother's parents were came to South Africa because they believed in the apartheid policies. And so he he has been taught those ways.

So it is 100% a personal vendetta against South Africa because he's only really talking about race based laws. That's the really the only thing that bothers him when it comes to South Africa. Why is that being pushed the most? And at the end of the day, The United States Of America has the same laws. And ours go through a system, and it goes through the parliament.

It's debated at length. It's contested at length. It takes time. It wasn't just sucked out of, you know, parliament's or the president's thumb like yesterday. It's been talks, for more than a decade, when it comes to these laws.

So it is, it it has to do with those, the fact that I I believe that he is racist. Yes.

Well, I mean, you said you said he doesn't have to say it out loud, but he did it. Literally, a Nazi salute in front of the whole world. So I'm not sure how much more out loud you can be and out in the open you can be about it. The thing is for for for white South Africans, you know, or and in America as well, obviously. If you are used to a position of superiority, then equality feels like a downgrade.

Equality feels like you're being subjugated because you're used to being on a pedestal. You're used to being up very high. And so when you end up being on the on an on an equal level or even close to an equal level with everyone else, then you feel like it's a downgrade and you feel that you're you're being oppressed because you don't get to have that same superior position that you got used to before. So this so so in other words, what we're talking about actually is the the Trump administration imposing political mobilizing the tools of the state mobilizing the tools of the state, sanctions, threatening the removal from Agua, threatening other economic consequences on South Africa, using the political tools of the American state in service directly in service to Elon Musk, to startling, to a business. This it it couldn't be a more clear example of how the state is subordinate to the interest of the private sector, Subhanomah.

Yes. Textbook case. That's exactly what is happening right now. You can see it. It's no longer conspiracy theory.

If people believe it's a conspiracy theory, their eyes are not open and their ears are deaf, and they are not looking and they're not seeing and they're not hearing. It that is the definition of the state bound down to, you know, capitalism. You could see it in the inauguration. You know, the the the oligarchs were all positioned right in front. They were lined up.

You know? Elon Musk was in his element. They you could see they were just happy that their turn is they don't they don't have to hide it anymore. They're happy. They don't have to hide it anymore.

They don't have to pretend anymore that they these moral citizens and that they care about human lives. And the reason why they hoard all this cash is because, well, the rest of the world is just too stupid to handle cash. They really don't have to hide anymore exactly what they think of the rest of the world, what they think of the people within The United States Of America. They in their element. They get to for the next four years, they get to do whatever they want until the next president comes along, and, you know, it's just it's just a downward spiral.

It's it's like you say, Trump is just overseeing the decline. It's not going to get any better for them if they don't make real changes, and it doesn't seem that they are interested. Trump is allowing himself this man with his big mouth that can threaten, you know, powerful nations with nuclear weapons and whoever it is, he he has this huge mouth, and he seems to be so outspoken. But at the end of the day, he's just, you know, he's just a megaphone, and he's just doing what Elon Musk wants him to do. In any case, it it's the truth.

It's not a conspiracy theory. You can see it happening, and he's signing off on these things.

You know, it's it's it's this is why I always mention when I'm when I'm talking about this, the the specific issue of American power or American hegemony, that it has always been based on the lack of alternatives. So now that alternatives exist, all of these all all of these threats are empty threats. All of all of these threats can bounce off the chest of South Africa and anyone else that they threaten. Sanctions don't have the power they used to have. Tariffs are are anyway, tariffs are incredibly bad idea for the American economy as it is.

I I'm I'll actually talk about that soon. But you can't you can't throw your weight around when the only time that the the the only reason that you ever had the ability to throw your weight around is because no one else was throwing their weight around. You're the only one on the stage, so you always got the monologue. You always got the soliloquy. But now there there's a whole stage of actors, full of actors, and and everyone can have dialogue with each other now.

So, no, South Africa doesn't need they can threaten as much as they want. And it's also interesting that as you mentioned with the AGOA agreement, the main beneficiaries of that are the white South Africans. The main beneficiaries are the white South Africans. The very people who you are saying that you're worried about and that they're being oppressed and they need to have their rights. And and one of the one of the reasons why you're why you're opposed to what is required of you, Elon Musk, for operating Starlink in South Africa is because you you think that it's unfair to whites.

Meanwhile, you're threatening to actually harm whites in South Africa by by taking South Africa out of Aloha. So it's clear. There's so many contradictions in this. If South Africa were to just float a compromise about Starlink, then suddenly all of these complaints and grievances against South Africa would disappear. It's it's so it's so transparent that that all of their talk about, you know, morals and principles and justice and unfairness and equality and so on and so on, it's all meaningless.

It's all just because he wants to get he he wants to be able to operate in South Africa how he wants to operate for his own private enterprise.

Absolutely. And and and if they do give in, if the South African because South Africa is getting a delegation together, They're going over to The United States Of America to Washington, and they're going to go discuss to try and keep South Africa, you know, still as part of a goer. And if they do compromise on the BEE, they're just opening, you know, the door to for or a president. They're setting a precedent for this you know, laws can be broken because this is an actual law. It's legislation.

It's not just something that is it it's gone through the constitution. It's it's all those things. It it has gone through the process and the mechanism. It's a legislation, a valid legislation. So if South Africa gives into it, that means they are breaking the law, in terms of allowing Elon Musk to brainstorm that we we don't need more Internet.

We find we don't. We've got we've got. We can make do with one of these. These these these these other service providers In Africa, we are not dumb. We can we are innovative.

We can come up with solutions. But as it is already, we've got Internet in the smallest towns. They're not always the best, but it functions, and there's no need. And you'll notice the people that are shouting, at the top of their voices for this stalling, predominantly white people that feels very aggrieved over the fact that South Africa is the only country in the SAREC region that doesn't have Starlink because all the others that are supposedly below us, like Zimbabwe and Namibia, they already have Starlink, but we don't have Starlink. We've got we've got Internet.

It's okay. We can do without it.

Absolutely. I I I'm pretty sure that we're connected right now by Internet.

Yes. And it's not the best, by the way. It's not one of the best. I'm in a small town. So that's why I'm I'm fine.

We're doing it. We're still getting our message across, and it's it's not the fast Internet. And some say Starlink is fast. Some say Starlink is slow. I don't know.

I'm not interested in spending $500 a month on Internet. I've got bills to pay.

Absolutely. Absolutely. Okay, I think that will that will do it for tonight. I think the meeting is gonna end probably automatically on the the Zoom call. So, that was a very informative briefing on South Africa.

I hope, inshallah, we'll be able to do it every week.

Inshallah. That's my that's my aim. And thank you so much for your time, brother Sheep. Really appreciate it.

Thank you so much for your time, sister.