US President Donald Trump has declared that he will halt all future aid to South Africa, criticizing the country’s land expropriation policies. He expressed dissatisfaction over the government’s actions, claiming they allow land to be taken “unfairly” and accusing the country of mistreating certain groups. “I will be cutting off all future funding to South Africa until a full investigation of this situation has been completed!” Trump said on his social media platform, Truth Social. This statement led to a 1.9% drop in the value of the South African rand, which weakened to R19 per dollar.
Trump further commented on the situation, describing the South African leadership’s actions as “terrible” and “horrible,” though he did not provide specifics or evidence to support his claims.
The Controversial Land Expropriation Bill
Trump’s remarks stem from the land expropriation bill that South African President Cyril Ramaphosa recently signed into law. This legislation allows authorities at various levels to seize land for public purposes, aiming to promote inclusivity and improve access to resources. A statement from the South African government highlighted these goals, noting the bill’s intent to address historical inequalities.
In 2023, the US allocated nearly $440 million in assistance to South Africa. Following Trump’s comments, the US has already paused foreign aid for 90 days, raising concerns about the future of international aid programs. South Africa’s government has yet to respond to Trump’s latest criticism.
Trump’s Previous Threats and Escalating Tensions
This isn’t the first time Trump has threatened to cut aid to South Africa. During his first term, he called for an investigation into claims that white farmers were being killed in the country, though these allegations were later dismissed as unsubstantiated. More recently, Trump reiterated his intention to impose high tariffs on BRICS nations, including South Africa, if they move away from using the US dollar as a reserve currency.
Interestingly, Elon Musk, a prominent figure close to Trump and head of the newly established Department of Government Efficiency (DOGE), is originally from South Africa.
Ramaphosa’s Reassurance and South Africa’s Position
Despite Trump’s threats, President Ramaphosa has expressed confidence about the US-South Africa relationship. At the World Economic Forum in Davos, Ramaphosa said he wasn’t concerned about the tensions with the US and mentioned that he had been in communication with Trump after the latter’s election. South Africa, which holds the G20 presidency this year, remains committed to its international relationships, including its role within the BRICS economic bloc.