 "US President Donald Trump gestures as he boards Air Force One en route to Florida at Harry Reid International Airport in Las Vegas on January 25, 2025. AP")
US President Donald Trump has vowed to halt all future aid to South Africa after expressing discontent over the country’s land expropriation policies, triggering a fall in the rand. The President claimed that the controversial measure has enabled South Africa to confiscate land “unfairly” and accused the nation of treating “certain classes very badly”.
“I will be cutting off all future funding to South Africa until a full investigation of this situation has been completed!” Trump said. The remarks were made by the American president on his social media app Truth Social. The comment also sparked a 1.9 per cent fall in the South African currency and weakened R19 per dollar.
Trump later told reporters that the South African leadership has been engaged in “some terrible things, horrible things” and suggested, without providing evidence or details, that the situation has worsened in recent months.
What is Trump talking about?
Earlier this month, South African President Cyril Ramaphosa signed an expropriation bill into law. “Local, provincial and national authorities will use this legislation to expropriate land in the public interest for varied reasons that seek, among others, to promote inclusivity and access to natural resources,” a statement on the South African government website said.
According to The Financial Times, the United States set aside nearly $440mn in assistance to South Africa in 2023. Trump administration has already paused all foreign assistance for 90 days, casting doubts about the future of various international aid agencies.
Last Month, while speaking at Davos, Ramaphosa told reporters that he was “not worried” about relations with the US and that he and Trump had spoken after the American president was elected. It is important to note that South Africa holds the presidency of G20 this year. Interestingly, Trump’s “first buddy” and the head of the newly formed Department of Government Efficiency (DOGE), Elon Musk, hails from South Africa as well.
Not the first time
This is not the first time Trump has threatened to cut aid to South Africa. During his first stint in the office, Trump has said that his government would investigate widespread claims that white farmers are being killed in South Africa. The government eventually dismissed these allegations referring to them as “unsubstantiated”.
Even this year, the American leader reiterated his threat to impose high tariffs on BRICS nations, of which South Africa is a member. Earlier this month, Trump threatened to impose 100 per cent tariffs should they move away from the dollar as a reserve currency. It is pertinent to note that the economic bloc also includes India.
With inputs from agencies.