Trump’s assault on South Africa reveals racial and territorial divides

On Monday, South African President Cyril Ramaphosa defended his land reform policies against an assault by Donald Trump that exposed the country’s profound divides over racial ownership discrepancies, a problem that has existed since apartheid.

In reaction, the U.S. president threatened to stop financing South Africa, saying on Sunday that “certain classes of people” were being treated “very badly” and that “South Africa is confiscating land” without providing any supporting evidence.

According to Ramaphosa, the government has not seized any land, and he is eager to speak with Trump in order to improve mutual understanding over a policy that he claims guarantees fair public access to land.

In a post on X, Elon Musk, Trump’s billionaire supporter and a native of South Africa, reiterated Trump’s criticism by claiming that the nation had “openly racist ownership laws” and that white people were the victims.

Black landowners own just 4% of South Africa’s freehold farmland, whereas White landowners own 75%. In South Africa, over 80% of the population is Black, with only 8% being white.

In order to remedy the discrepancy, Ramaphosa approved a measure last month that would facilitate the state’s expropriation of land in the public interest.

Trump was accused by his African National Congress, the largest party in the government coalition, of spreading false material from AfriForum, a right-wing lobbying organization that supports what it believes to be the interests of white Afrikaans speakers.

Trump’s criticism was “a direct result of the lobby group’s ongoing efforts to mislead the global community and protect apartheid-era land ownership,” according to the ANC.

In regards to land reform, AfriForum CEO Kallie Kriel stated that his organization will request that the US government “directly punish senior ANC leaders and not the people of South Africa.” A representative attested to the group’s lobbying efforts in the US.

Concerns over trade deals

The Democratic Alliance, which is run by white people and is the second-largest party in the coalition government, corrected Trump on the details of the land reform bill but stated that it wanted it changed to solve some of its shortcomings.

“It is not true that the Act allows land to be seized by the state arbitrarily, and it does require fair compensation for legitimate expropriations,” the district attorney stated.

In reaction to any reduction in aid, African nations should “withhold minerals” from the United States, according to ANC mining minister Gwede Mantashe. Vincent Magwenya, a spokesman for Ramaphosa, told Reuters the it should be “taken in jest” and that the government was not genuinely supporting the scheme.

$315 million of the $440 million Washington pledged to provide to South Africa in 2023 was for HIV/AIDS. U.S. financing, according to Ramaphosa, made up 17% of South Africa’s HIV/AIDS program but was insignificant in other areas.

South Africa’s good connections with China and Russia, as well as its legal lawsuit against Israel, a steadfast friend of the United States, which Pretoria accuses of genocide, were already straining bilateral ties.

Economists warned that any U.S. actions against South Africa may harm the country’s economy at a time when the U.S./Africa AGOA trade agreement is set to expire and Ramaphosa has been finding it difficult to spur development and draw in investors. Following Trump’s remarks, South Africa’s rand, equities, and government bonds all declined.

Would you be interested in opening a factory in a nation where Trump is now shutting off all aid? Charles Robertson, an emerging markets analyst with FIM Partners, stated, “He may tear up AGOA tomorrow and impose 25% tariffs on Wednesday because they are too close to China.”

In 2023, South Africa’s exports to the United States under AGOA accounted for 1% of GDP, with over half of those exports being transportation equipment, according to Capital Economics economist David Omojomolo. He claimed that the car industry in South Africa was qualified for AGOA for 56% of its exports.

The extension of AGOA, which ends this year, will be discussed by the government with the U.S. administration and both congressional parties, according to Trade Minister Parks Tau.

According to him, “we are optimistic that we will remain part of AGOA,” he told Reuters while attending a mining conference in Africa in Cape Town.