The South African rand weakened by 1.1% after President Trump criticized the country over land policies, claiming it seizes farmers’ properties. He announced a halt to federal funding, a move that South Africa is prepared to counter with diplomatic resilience, despite having lost a $1 billion coal-transition pact. President Ramaphosa asserts that South Africa will remain unfazed by external criticisms.
The South African rand has depreciated significantly following renewed criticisms from U.S. President Donald Trump regarding the country’s policies. The currency dropped by 1.1%, settling at 18.2563 rand per dollar as of 5:45 p.m. in Johannesburg, after Trump claimed on his Truth Social account that South Africa is seizing land from farmers. It is important to note that since the end of apartheid in 1994, South Africa has not confiscated any private land.
Trump also announced a halt to all federal funding to South Africa and reiterated his support for farmers who he alleges are fleeing the country due to safety concerns. On February 7, he signed an executive order to terminate all federal assistance to South Africa, promoting resettlement of “Afrikaner refugees escaping government-sponsored, race-based discrimination.”
In response to Trump’s criticisms, South Africa’s presidency spokesperson, Vincent Magwenya, stated that the nation will not engage in “megaphone diplomacy” and is focused on fostering a mutually beneficial relationship with the U.S. in trade, politics, and diplomacy. This indicates a commitment to diplomacy despite external pressures.
Trump’s comments were preceded by a post from billionaire Elon Musk on X, who claimed that his Starlink business cannot operate in South Africa due to legislation requiring substantial Black ownership, a policy designed to amend the injustices from apartheid.
Further complicating relations, South Africa reported that the U.S. had informed them about withdrawing from a coal-transition agreement, which involved a commitment of $1 billion. Additionally, Trump has ended numerous healthcare programs on the continent, including those in South Africa.
In a recent speech, South African President Cyril Ramaphosa conveyed resilience, emphasizing that “We are not daunted to navigate our path through this world…as South Africans, a resilient people, we will not be bullied,” signaling determination in the face of criticism.
The extent of the federal funding Trump aims to revoke remains uncertain, highlighting ongoing tensions in U.S.-South Africa relations.
The South African rand’s decline reflects increasing tensions following Donald Trump’s reassertion of criticism towards South African policies. Despite Trump’s threats to withdraw funding and support for farmers, South Africa emphasizes its commitment to resilience and fostering constructive diplomatic relationships. The country continues to navigate its political landscape amidst external pressures, maintaining its dedication to address historical injustices while promoting bilateral cooperation with the United States.
Original Source: www.livemint.com
