The South African rand fell after US President Donald Trump criticized the country’s land policies and announced a halt to federal funding. Trump accused South Africa of confiscating farmers’ land and offered refuge to those he claims are in danger. In response, South Africa emphasized its commitment to a strong bilateral relationship with the US, while President Ramaphosa expressed resilience against external pressure.
The South African rand experienced a decline, slipping by as much as 1.1% and settling at 18.2563 rand per dollar as of 5:45 p.m. in Johannesburg. This depreciation follows remarks made by US President Donald Trump via his Truth Social account, in which he accused South Africa of confiscating land and farms from farmers, a claim that has no basis since the cessation of land seizure practices post-1994.
Trump further stated his intent to halt all federal funding to South Africa, emphasizing his offer of refuge to farmers he alleges are escaping safety threats in the country. Previously on February 7, he had enacted an executive order suspending all assistance to South Africa while proposing to resettle “Afrikaner refugees escaping government-sponsored, race-based discrimination.”
In response, South Africa has declared its resolution to avoid engaging in what is termed “megaphone diplomacy.” A spokesperson for the presidency, Vincent Magwenya, affirmed the nation’s dedication to fostering a mutually advantageous trade, political, and diplomatic relationship with the United States.
Trump’s comments followed a statement from his associate, Elon Musk, who indicated his Starlink satellite company is hindered in South Africa due to racial considerations. Musk alluded to existing legislation mandating considerable Black ownership, which aims to remedy the remnants of apartheid affecting the Black majority of the nation.
Additionally, South Africa disclosed that the US intended to withdraw from a coal-transition agreement which involved $1 billion in funding. Trump has also annulled numerous healthcare initiatives across Africa, including those in South Africa.
In a broader context, South African President Cyril Ramaphosa asserted the nation’s resilience by stating, “We will not be deterred. We are, as South Africans, a resilient people, and we will not be bullied.” This declaration was made on February 6, devoid of any direct reference to Trump.
The specific federal funding that Trump aims to terminate in South Africa remains ambiguous.
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The South African rand’s decline is attributed to renewed criticism from US President Donald Trump regarding land seizure allegations and the suspension of federal funding. Despite these challenges, South Africa is committed to maintaining a robust bilateral relationship with the United States. Key figures such as President Ramaphosa and entrepreneur Elon Musk are involved in the discourse surrounding race and business in South Africa. As the situation evolves, the implications for South African-US relations remain significant.
Original Source: www.livemint.com
