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February 3, 2025 U.S To Cut Funding For South Africa Over Land Policy

President Donald Trump has announced plans to halt future funding to South Africa, citing allegations of land confiscation and unfair treatment of certain groups.

His statement follows President Cyril Ramaphosa’s recent approval of a law permitting land expropriation without compensation under specific conditions. Land ownership remains a sensitive issue in South Africa, where a significant portion of private farmland is still controlled by white individuals, despite the end of apartheid three decades ago.

Calls for land reform have persisted as the government seeks to address historical injustices related to racial segregation.

In response to Trump’s remarks, Ramaphosa posted on X, emphasizing that South Africa is a constitutional democracy committed to justice and equality. He refuted claims of land seizures, asserting that no land had been confiscated. The president also clarified that U.S. funding to South Africa is primarily channeled through the health initiative Pepfar, which accounts for 17% of the nation’s HIV/AIDS program.

According to U.S. government data, South Africa received approximately $440 million in American aid in 2023.

Billionaire entrepreneur Elon Musk, a South African native and Trump adviser, also weighed in on the debate, arguing that the law discriminates against white citizens. In a post on X, he questioned Ramaphosa: "Why do you have openly racist ownership laws?"

Trump later reiterated his stance on his social media platform, Truth Social, stating that all future funding to South Africa would be cut until a full investigation was conducted. Speaking to reporters, he accused South African leadership of engaging in "terrible, horrible things," including land confiscation and possibly more severe actions.

The controversial law allows for land expropriation without compensation only when deemed "just and equitable" in the public interest. Examples include cases where land is unused, abandoned, or poses a safety risk. Previously, the government could only acquire land from owners willing to sell, a process some argue has slowed reform efforts.

Critics, however, fear that the law could lead to economic instability, similar to Zimbabwe’s experience, where land seizures contributed to economic collapse and deterred investors.

In response to Trump’s remarks, South African Mineral Resources Minister Gwede Mantashe suggested that South Africa should consider withholding its mineral exports—such as platinum, iron, and manganese—if the U.S. withdraws financial aid.

Meanwhile, AfriForum, a group advocating for the rights of South Africa’s white Afrikaner population, called for amendments to the law to safeguard property rights. However, the organization disagreed with Trump's proposed funding cut, arguing that any punitive measures should target high-ranking ANC leaders rather than the general public.

Trump has criticized South Africa’s land policies before, instructing his administration during his first term to investigate reports of farm expropriations and alleged attacks on white farmers. At the time, South African officials dismissed his claims as "misinformed" and accused him of fueling division.

 

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