Why Musk and Trump Want South Africa’s Rare Earths and Rocket Sites

What a White House lunch, a public feud, and a forgotten airstrip in the Western Cape reveal about South Africa’s strategic value in a tech-hungry world

When Elon Musk returns to his home continent, it’s rarely just for nostalgia. And this time, the stakes are as high as low-Earth orbit.

Three weeks ago, a closed-door lunch in the White House between Musk, US President Donald Trump, and President Cyril Ramaphosa seemed like an attempt to patch things up after a fiery Oval Office spectacle. But since then, a whirlwind of events from explosive social media spats to renewed US-China tensions has reshaped the conversation.

And right in the middle of it all? South Africa.

Rare Earths, Rare Opportunity

The heart of Musk’s interest lies buried deep in South African soil, quite literally. The country is home to one of the world’s most promising rare earths reserves at Steenkampskraal, a mine some 380km from Cape Town. These minerals are essential for producing magnets used in electric vehicles, wind turbines, smartphones, and satellites — all cornerstones of Musk’s empire.

Trump, meanwhile, is eager to secure an alternative supply chain outside of China, whose decision to freeze rare earth exports to the US sent ripples through global manufacturing. Musk and US Commerce Secretary Howard Lutnick reportedly pressed the South Africans on rare earth access during the White House lunch.

While Steenkampskraal isn’t expected to produce meaningful output until next year, the symbolism is clear: South Africa is no longer just a supplier of raw materials — it’s now a strategic partner in the tech race.

Launching into Space (Literally)

Beyond minerals, Musk has his eyes on the Denel Overberg rocket testing range near Arniston. Quietly operating under the radar, the facility has been launching suborbital rockets up to 18km high, supported by a new six-storey gantry. With a SpaceX investment, it could launch satellites into orbit by 2028.

This remote Cape site offers a unique southern hemisphere advantage: it’s ideal for placing satellites in polar orbits — a key requirement for Starlink and Earth observation. While Musk didn’t mention Starlink during the White House meeting, his interest in Overberg suggests a long-term play to decentralize launch capacity and get closer to underserved African markets.

Starlink, BEE, and Bureaucracy

Of course, launching rockets isn’t just about physics — it’s also about politics. In South Africa, Starlink’s expansion has been slowed by regulatory hurdles around Broad-Based Black Economic Empowerment (B-BBEE) requirements.

Communications Minister Solly Malatsi confirmed this week that the Independent Communications Authority of South Africa (ICASA) is reviewing the policy, though no decision is imminent. Until then, Starlink’s rollout remains in limbo — a situation Musk no doubt finds frustrating.

The Trump-Musk Feud That Almost Derailed It All

Things got messy. Really messy.

After their seemingly cordial White House lunch, Musk took to X (formerly Twitter) and torched Trump’s latest spending bill, calling it a “disgusting abomination” and accusing Trump of inflating the US deficit. Then he lobbed a bombshell, insinuating links between Trump and Jeffrey Epstein.

The backlash was swift. And chilly.

This week, Musk backed down, apologizing for “going too far” and confirming a conciliatory call with Trump. But whether that’s enough to repair the damage remains to be seen, especially since Musk’s core frustration around debt and spending hasn’t changed.

Trade Deals in the Balance

Behind the chaos, a serious negotiation is simmering. South Africa has offered the US:

Duty-free access for 40,000 American-made vehicles annually
Duty-free status for South African-made auto components
A $1.2 billion per year LNG deal, to be locked in for a decade

But so far, there’s been little progress. Trump’s goal of 90 trade deals in 90 days has produced just one draft agreement — with the UK.

South African officials remain hopeful. Ramaphosa is expected to meet Trump again on the sidelines of the G7 in Canada this weekend. But the reality is that US Africa policy is being run directly from the White House — without a named Assistant Secretary for African Affairs, and with little coordination from the State Department.

Instead, influence lies with unusual players: Massad Boulos, father-in-law to Tiffany Trump and a businessman with roots in Nigeria, is steering much of the White House’s Africa engagement.

What’s at Stake for South Africa?

South Africa’s space sector, already collaborating with NASA on the Artemis moon mission and with China and Europe on lunar research, stands at a crossroads. It has more than 30 space startups, is building a new deep-space station in Matjiesfontein, and is finally poised to turn its rare earth reserves into global leverage.

The question is: Will South Africa benefit from this sudden attention, or become a pawn in a larger geopolitical chess game?

As global powers jostle for minerals, satellites, and influence, South Africa finds itself in the hot seat, part kingmaker, part bystander. And while Musk may have dialed back his feud with Trump, it’s clear that the future of tech, space, and trade could hinge on what happens next in Pretoria and Washington alike.

One thing’s certain: Africa’s biggest economy is no longer just watching history unfold, it’s becoming a key player in writing it.