On February 3, 2025, U.S. President Donald Trump announced plans to halt all future funding to South Africa, alleging that the nation is “confiscating land” and mistreating “certain classes of people.” He stated, “I will be cutting off all future funding to South Africa until a full investigation of this situation has been completed!”
In response, South African President Cyril Ramaphosa firmly denied these allegations. He clarified that the recently enacted Expropriation Act is a “constitutionally mandated legal process” designed to ensure equitable land access. Ramaphosa emphasized that the government “has not confiscated any land” and expressed readiness to engage with the U.S. administration to provide clarity on the country’s land reform policies.
The Expropriation Act, signed into law by President Ramaphosa, allows the government to expropriate land in specific circumstances deemed to be in the public interest. This legislation aims to address historical injustices from the apartheid era, where non-white populations were forcibly removed from their lands. The act replaces outdated laws and seeks to promote fair land distribution.
Critics, including President Trump and some of his allies, argue that the law could lead to unfair land seizures and potential human rights violations. Notably, Elon Musk, a South African-born entrepreneur and current head of the U.S. Department of Government Efficiency, has publicly criticized South Africa’s land policies. He questioned the country’s land ownership laws, suggesting they are “openly racist.”
The U.S. has been a significant aid contributor to South Africa, with allocations of approximately $440 million in 2023, primarily supporting health and development initiatives. President Trump’s recent announcement to suspend funding has led to economic repercussions in South Africa. The South African rand depreciated by 1.6% against the U.S. dollar following the news.
South African officials have expressed a desire to engage in dialogue with the U.S. to clarify the intentions and implications of the Expropriation Act. They maintain that the legislation is a necessary step toward rectifying historical land disparities and is being implemented within the bounds of the country’s constitution.
