Africa’s largest economy may soon see the return of its “prodigal son”… Tesla CEO Elon Musk.

Musk was born and raised in South Africa. His Starlink Internet service is available in 16 countries around Africa. But it hasn’t yet launched in his home country.

Today, that looks set to change.

On September 8, a South African X user tagged Musk to complain about his farm’s Internet speed…

“Try to online school 2 kids with a 6 line,” said the user. “We really can do with @Starlink in .”

Musk responded about half an hour later: “Waiting for regulatory approval.”

Now, according to South African President Cyril Ramaphosa, he and Musk are in talks to give South Africa Starlink access. As Ramaphosa told reporters a little more than a week ago…

I have had discussions with him and have said, Elon, you become so successful and you’re investing in a variety of countries, I want you to come home and invest here.

Bringing Starlink to South Africa could renew Musk’s relationship with his home country. But it’s also part of a much larger investing story for Africa’s biggest and most developed economy…

South Africa is undergoing a generational political shift. Yet almost no one in the investing media is talking about it.

To understand what’s going on, we need to quickly touch on how presidential elections work in South Africa…

South African voters go to the ballot boxes every five years. But they don’t directly elect the president. Instead, they decide on members of Parliament who vote for a president on their behalf.

That means the majority party can appoint whichever president it wants. And for 25 years, one group enjoyed an unbeatable majority in South Africa… Nelson Mandela’s party, the African National Congress.

The African National Congress won every South African general election from 1994 to 2019. But this year, the party lost its outright majority at the ballot.

The voters threatened Ramaphosa’s presidential seat… So his party threw a Hail Mary.

The African National Congress joined with several of its largest rivals in a historic coalition, forming a “government of national unity.”

The largest of those rivals – and most noteworthy – is the pro-business Democratic Alliance.

The Democratic Alliance stands for less regulation, along with stronger policing and better anti-corruption laws. And today, Democratic Alliance members are in government for the first time ever. They make up about 19% of Ramaphosa’s new cabinet.

Investors are cheering the new coalition. South African stocks are soaring to multiyear highs…

We can see this through the iShares MSCI South Africa Fund (EZA). This fund holds a broad basket of South African stocks. And it’s currently trading at its highest price in more than two years. Check it out…

With this more pro-business government coalition still in its infancy, this rally has room to run.

The 2024 election has set up a historic opportunity to invest in South Africa. The country’s new bull run is just beginning… And it won’t be long before big-money interests like Musk start fanning the flames.

Africa’s biggest economy is about to see a generational pro-business shift. That means South African stocks deserve your attention today.

Good investing,

Sean Michael Cummings

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Source: Daily Wealth