In a Truth Social post made on Sunday, the US President Donald Trump said;
“South Africa is confiscating land, and treating certain classes of people VERY BADLY. The United States won’t stand for it, we will act.”
“Also, I will be cutting off all future funding to South Africa until a full investigation of this situation has been completed!” he said.
The United States obligated nearly $440 million in foreign aid to South Africa in 2023, but this US funding is now at risk due to a contentious land expropriation law. Last month, South African President Cyril Ramaphosa signed the Expropriation Act into law, making it easier for the state to seize land ownership in the public interest.
Racial Disparities in Land Ownership
The Expropriation Act aims to address the lingering racial disparities in land ownership, which have persisted for over three decades since the end of apartheid in South Africa in 1994. However, US President Donald Trump has taken issue with the law, threatening to cut off US aid to South Africa until a full investigation is completed.
South Africa’s Response to Trump’s Funding Threats
In response to Trump’s threats, South Africa’s foreign ministry emphasized that the country is a constitutional democracy, and the Expropriation Act is not a confiscation instrument but rather a legal process to ensure public access to land reform in an equitable and just manner. The ministry also noted that many countries, including the United States, have similar expropriation laws.
The Economic Implications of the Foreign Aid Ban
The potential withdrawal of US foreign aid could have significant economic implications for South Africa. The country currently holds the G20 presidency, and the US is set to take over next. The Expropriation Act has already sparked concerns among investors and economists, with some warning of a potential downturn in the South African economy.
Potential Global Repercussions
This conflict between the US and South Africa over the Expropriation Act may potentially have far-reaching global repercussions. The African Growth and Opportunity Act (AGOA), which provides trade benefits to African countries, including South Africa, could be at risk. The US is also set to host the G20 Summit in 2026, and the current tensions between the two countries could impact the success of the summit.
During his first administration, Donald Trump said the U.S. would investigate unproven large-scale killings of white farmers in South Africa and violent takeovers of land.
At the time, Pretoria said Trump was misinformed saying it is unclear whether the Trump administration carried out an investigation.
