Trump Cuts Off Funds to South Africa over Land Confiscations

Photo Credit: Government Communication and Information System (GCIS)

President Cyril Ramaphosa, October 26, 2019.

“South Africa is confiscating land, and treating certain classes of people VERY BADLY,” President Donald J. Trump wrote on his Truth Social platform on Sunday, adding, “I will be cutting off all future funding to South Africa until a full investigation of this situation has been completed!”

Last month, South African President Cyril Ramaphosa signed a bill allowing the government, under certain conditions, to provide “nil compensation” for property expropriated in the public interest.

The land issue in South Africa has long been a contentious topic, with attempts to “address inequalities from the era of white rule” facing criticism from conservatives, especially whites, including Elon Musk—South African-born billionaire and Trump’s most influential adviser.

Musk’s team has recently expanded its influence over US departments and agencies, taking control of the Treasury’s payment system and sending representatives to USAID to access information, including classified materials. Two senior security officials were placed on leave after refusing to grant access.

Later on Sunday, in a briefing with journalists, Trump attacked South Africa’s leadership, stating they were doing “terrible things, horrible things,” but did not provide specific examples.

President Cyril Ramaphosa signed an expropriation bill into law this month, stating that local, provincial, and national authorities would use it to expropriate land in the public interest for various purposes, including promoting inclusivity and access to natural resources.

The South African government insists that the law does not permit arbitrary expropriation of lands from anyone, whites included, and requires the government to first attempt to reach an agreement with the property owner. However, South Africa’s whites remember Zimbabwe’s post-1980 land seizures, where white-owned commercial farms were seized without compensation.

Many Israelis will be delighted with the news of Trump’s turning against Pretoria, even if the new US president has yet to mention its unfounded attacks on Israel. South Africa accused Israel of committing genocide against Gaza Arabs, alleging violations of the Genocide Convention. South Africa petitioned the International Court of Justice on December 29, 2023, for provisional measures, including the immediate suspension of Israel’s military operations.

Israel rejected the allegations as “baseless,” accusing South Africa of acting as the legal arm of Hamas. It maintained that its actions were a lawful war of self-defense following the Hamas atrocities of October 7, 2023.

Trump’s remarks on Truth Social triggered a 1.9% drop in the South African currency, which weakened to 19 rand to the dollar.

In 2023, the most recent year for which data is available, the US allocated close to $440 million in assistance to South Africa. The Trump administration has since paused all foreign aid for 90 days, casting uncertainty over its main international aid agency (its website has gone dark and dozens of its employees have been placed on leave – DI).

Last month, during the Davos, Switzerland conference, President Ramaphosa told reporters he was “not worried” about his relationship with the US, noting that he had spoken with Trump after his election.  Incidentally, South Africa holds the G20 presidency this year.