South Africa under siege

South Africa’s new expropriation without compensation law and race-based business policies have made it a target of the Trump administration.

United States President Donald Trump has taken a firm stance against Diversity, Equity, and Inclusion (DEI) initiatives.

Trump and the influential people around him, including Elon Musk, view these initiatives as divisive and contrary to merit-based principles.

One of the first things he did after taking office on 20 January 2025 was to issue executive orders to dismantle DEI programs across federal agencies.

It did not take long before South Africa, known for its race-based policies like Black Economic Empowerment (BEE) and Affirmative Action, became a target.

On 3 February 2025, Trump said he would cut off all future funding to South Africa until a full investigation into taking land from certain people has been completed.

“South Africa is confiscating land and treating certain classes of people very badly,” Trump said on his Truth Social network.

Trump called it a “massive human rights violation, at a minimum”, saying it is happening for all to see. “The United States won’t stand for it. We will act,” he said.

His comments came shortly after President Cyril Ramaphosa signed the controversial Expropriation Bill into law.

The bill outlines how state organs can expropriate land in the public interest, which includes expropriation without compensation.

Ramaphosa responded to Trump’s allegations, saying the South African government has not confiscated any land.

“South Africa is a constitutional democracy deeply rooted in the rule of law, justice, and equality,” Ramaphosa said.

He added that the Expropriation Act is a constitutionally mandated legal process that ensures public access to land in an equitable and just manner.

However, Elon Musk responded, asking Ramaphosa why South Africa has “openly racist ownership laws”.

Musk was referring to black empowerment laws that differentiate on race regarding business policies.

Ramaphosa spoke with Musk on “misinformation and distortions about South Africa”. However, the United States’ stance has not changed.

Donald Trump’s executive order against South Africa

On Friday, 7 February 2025, Trump signed an executive order formalising his earlier announcement that he would freeze assistance to South Africa.

The White House criticised the recently signed expropriation without compensation Act, which opens the door for the state to take land without paying for it.

It argued the law amounts to discrimination against the white minority population. “The government of South Africa blatantly discriminates against ethnic minority Afrikaners,” it said.

Trump said the law follows countless government policies designed to dismantle equal opportunity in employment, education, and business.

He also criticised hateful rhetoric and government actions fuelling disproportionate violence against racially disfavoured landowners.

The White House added that South Africa continues to support bad actors on the world stage and allows violent attacks on innocent, disfavoured minority farmers.

It said the United States would stop aid and assistance to the country until this behaviour stopped.

The White House added that Trump is going to announce a program to resettle Afrikaners, including farmers and their families, as refugees.

“The Secretary of State and the Secretary of Homeland Security shall take appropriate steps, consistent with law, to prioritize humanitarian relief,” the order said.

It includes admission and resettlement through the United States Refugee Admissions Program for Afrikaners in South Africa who are victims of unjust racial discrimination. 

Other United States politicians weigh in on South Africa

Joel Pollak, the frontrunner to become the United States’ Ambassador to South Africa, also slated South Africa’s transformation policies.

Pollak said South Africa has adopted economic and foreign policies that are not aligned with Western norms.

He explained that race-based policies, like black economic empowerment, are a problem for investors and opposed to what the United States is doing.

He explained that the United States has no appetite for racial policies in investment or anywhere else.

Pollak added that South Africa focuses on redressing the past instead of building a better future. “The world is tired of it,” he said.

Pollak said Trump wanted to see those policies changed and would play hardball to see it happen.

Many stakeholders expected South Africa and the United States to use the G20 Summit in Johannesburg as a platform to mend relationships.

However, this was dealt a blow after the United States Secretary of State, Marco Rubio, said he wouldn’t attend the G20 in Johannesburg.

Rubio cited South Africa’s new land-expropriation law as one of the many reasons why he is snubbing the event.

“South Africa is doing very bad things. Expropriating private property. Using G20 to promote solidarity, equality, and sustainability,” he said.

He said South Africa will use the summit to promote diversity, equity, inclusion, and climate change, opposing their standpoint.

“My job is to advance America’s national interests, not waste taxpayer money or coddle anti-Americanism,” he said.

South Africa’s International Relations Minister Ronald Lamola said he would continue to engage the United States on South Africa’s laws.

Ramaphosa’s spokesperson, Vincent Magwenya, said they hoped Trump would visit South Africa before the G20 Summit, where the heads of state could meet.

Economist Dawie Roodt shares his view

Renowned economist Dawie Roodt said South Africa must realise that Donald Trump is the most powerful man in the world.

“He is in charge of the biggest economy in the world. Whatever he says or does will have a huge impact on South Africa,” Roodt said.

“Donald Trump only saying a few things saw the South African rand weakening,” he said, illustrating the power of Trump’s words.

Decisions like kicking South Africa out of the African Growth and Opportunity Act (AGOA), implementing tariffs, or even imposing sanctions will have a huge impact on the country.

In comparison, the United States economy is so large that it will hardly feel the impact of such a decision.

Roodt advised the South African government to be as diplomatic as possible and be politically neutral internationally. “South Africa should try to be friends with everybody,” he said.

He explained that the Chinese, Americans, and Europeans are all very important to South Africa’s economy.

“We have to be extremely careful on how we approach the Donald Trump Administration,” Roodt said.

“When he wakes up one morning and is angry with South Africa he can inflict horrible pain on the local economy.”

“Whether you like him or not, you have to be on the good side of Donald Trump because he is the top dog.”

The good news is that South Africa’s politicians seem to realise the gravity of the situation and are trying to manage it as best they can.