South Africa Responds to Trump's Aid Cut Threat Over Land Policy.
South Africa defended its land reform laws Monday after former US President Donald Trump threatened to halt funding over claims of land confiscation.
Trump declared he would stop future aid to South Africa, claiming the country confiscates land and mistreats "certain classes of people." He provided no evidence for these statements.
President Cyril Ramaphosa rejected Trump's accusations, stating no land had been confiscated. He expressed willingness to discuss the matter with Trump.
US assistance to South Africa reached $440 million in 2023, with $315 million supporting HIV/AIDS programs. Ramaphosa noted US funds make up 17% of South Africa's HIV/AIDS budget.
The dispute centers on South Africa's new Expropriation Act. The law aims to address racial gaps in land ownership that remain from the end of apartheid in 1994. It allows the state to acquire land for public interest through legal means.
Elon Musk, the South African-born billionaire, joined the debate on his X platform. He questioned South Africa's "racist ownership laws," suggesting discrimination against white landowners.
Ramaphosa's spokesperson, Vincent Magwenya, invited Musk to engage constructively. He pointed to the need to address "centuries of oppressive colonialism and apartheid."
The law sets strict conditions for land expropriation. These include cases of long-term informal occupation, unused speculative holdings, or abandoned property.
Financial markets reacted sharply. The rand dropped 2% against the dollar on Monday. Stock prices and government bonds also fell.
FIM Partners analyst Charles Robertson said African nations could withstand Trump's pressure. He noted China and Europe's larger investment roles compared to the United States.
Yet potential US actions could challenge Ramaphosa's economic plans. Robertson highlighted investor concerns about policy stability and trade relationships under possible future Trump measures.
South Africa defended its land reform laws Monday after former US President Donald Trump threatened to halt funding over claims of land confiscation.
Trump declared he would stop future aid to South Africa, claiming the country confiscates land and mistreats "certain classes of people." He provided no evidence for these statements.
President Cyril Ramaphosa rejected Trump's accusations, stating no land had been confiscated. He expressed willingness to discuss the matter with Trump.
US assistance to South Africa reached $440 million in 2023, with $315 million supporting HIV/AIDS programs. Ramaphosa noted US funds make up 17% of South Africa's HIV/AIDS budget.
The dispute centers on South Africa's new Expropriation Act. The law aims to address racial gaps in land ownership that remain from the end of apartheid in 1994. It allows the state to acquire land for public interest through legal means.
Elon Musk, the South African-born billionaire, joined the debate on his X platform. He questioned South Africa's "racist ownership laws," suggesting discrimination against white landowners.
Ramaphosa's spokesperson, Vincent Magwenya, invited Musk to engage constructively. He pointed to the need to address "centuries of oppressive colonialism and apartheid."
The law sets strict conditions for land expropriation. These include cases of long-term informal occupation, unused speculative holdings, or abandoned property.
Financial markets reacted sharply. The rand dropped 2% against the dollar on Monday. Stock prices and government bonds also fell.
FIM Partners analyst Charles Robertson said African nations could withstand Trump's pressure. He noted China and Europe's larger investment roles compared to the United States.
Yet potential US actions could challenge Ramaphosa's economic plans. Robertson highlighted investor concerns about policy stability and trade relationships under possible future Trump measures.
