Donald Trump has recently made headlines with his vow to halt all future US assistance to South Africa over its land expropriation policies. This decision has caused a significant drop in the value of the rand, the South African currency, which weakened to R19 per dollar following Trump’s announcement.
The US president accused South African authorities of unfairly confiscating land and mistreating certain classes of people. He declared on Truth Social, “I will be cutting off all future funding to South Africa until a full investigation of this situation has been completed!”
President Cyril Ramaphosa signed an expropriation bill into law this month, allowing local, provincial, and national authorities to expropriate land for public interest reasons. This move aims to promote inclusivity and access to natural resources, according to a statement on the South African government website.
It is worth noting that the US allocated nearly $440 million in assistance to South Africa in 2023. However, the Trump administration has decided to pause all foreign aid for 90 days, casting doubt on the future of its main international aid agency.
Despite the tension between the two countries, Ramaphosa remains optimistic about their relationship. He stated that he is not worried about the situation and has previously spoken with Trump after his election. South Africa currently holds the presidency of the G20 this year.
Elon Musk, a close ally of Trump and head of the Department of Government Efficiency, hails from South Africa. Musk’s influence has been evident in recent days, with his team gaining control over various US departments and agencies.
In the past, Trump has raised concerns about the alleged killings of white farmers in South Africa. However, the South African government has refuted these claims as unsubstantiated.
Furthermore, Trump has targeted the Brics nations, including South Africa, threatening them with 100% tariffs if they were to move away from using the dollar as the reserve currency.
