The US reaction to the Expropriation Act
In January, South Africa passed the Expropriation Act to address land ownership disparities caused by apartheid. Under the old system, over 80% of Black South Africans owned only about 4% of private land. President Cyril Ramaphosa defended the law, stating it would ensure fair access to land for all citizens
However, former U.S. President Donald Trump and his adviser Elon Musk opposed the policy. They claimed it discriminated against White South Africans. Musk even described South Africa’s land laws as “openly racist.”
US sanctions and aid cuts
In February, Trump issued an executive order halting all US aid to South Africa: the PEPFAR, the President’s Emergency Plan for Aids Relief, accusing the country of human rights violations and opposing its stance on Israel’s war in Gaza. Although the order did not specify which aid was being stopped, US assistance to South Africa amounted to nearly $440 million in 2023, mainly for health programs. Ramaphosa clarified that, aside from PEPFAR aid for HIV/AIDS relief, South Africa receives no significant US funding.
Trumps offers to help the Afrikaners refugees
In addition to the aid freeze, Trump offered to help refugees from the Afrikaner community who are mostly white descendants of early Dutch and French settlers, to settle in the USA. Stripping South Africa of its AGOA privileges on account of its expropriation law would hurt the same white farmers whom the US seeks to protect, according to Chrispin Phiri, a spokesperson for the country’s foreign minister. Indeed, the most of commercial farmers in South Africa are white. They have a commercial gain from an agreement like AGOA.
His stance has played into the hands of conservative Afrikaner lobby groups including AfriForum and Solidarity which want the government repeal what it calls “ race -based laws” such as affirmative action and black economic empowerment. Those lobbying groups in South Africa share sentiments similar to those of Trump. AfriForum, the South African-based civil rights non-governmental organization that advocates for the interests of the Afrikaner community, has alerted US lawmakers about questionable South African laws, including the current expropriation act. The group seeks support against policies of the ruling African National Congress , which AfriForum believes unfairly violates the rights of white Afrikaneers as minorities in the country.
Impacts on Trade : AGOA at Risk
Trump’s stance fueled conservative Afrikaner groups like AfriForum and Solidarity. These organizations oppose race-based policies such as affirmative action. AfriForum has actively lobbied U.S. lawmakers, arguing that South Africa’s land laws violate white minority rights.
Meanwhile, South Africa’s participation in AGOA, the African Growth and Opportunity Act, is now uncertain. AGOA, established in 2000 by President Bill Clinton, allows African nations to export goods to the U.S. duty-free. However, eligibility depends on human rights and U.S. foreign policy alignment.
As AGOA’s renewal deadline approaches in September 2025, South Africa faces potential exclusion. U.S. Congressman Andy Ogles and other Republicans have called for its suspension. They cite concerns over land reform, South Africa’s perceived bias against Israel, and its strengthening ties with China
Consequences of losing AGOA
Experts believe losing AGOA will not be catastrophic for South Africa. However, industries like automotive manufacturing could suffer. In the past, efforts to remove South Africa from AGOA failed. But this time, the political landscape is different.
Moreover ironically, suspending AGOA could harm the same white farmers the U.S. aims to protect. Many commercial farmers, who benefit from AGOA, are white. South African officials have pointed out this contradiction.
But to address concerns, Ramaphosa announced that South Africa will send a diplomatic delegation worldwide. The goal is to clarify its domestic and foreign policies. Meanwhile, South Africa’s G20 presidency provides an opportunity to strengthen its global standing.
However, U.S. Secretary of State Marco Rubio has dismissed these efforts. He refused to attend a G20 meeting in Johannesburg, stating: “My job is to advance America’s national interests, not waste taxpayer money or coddle anti-Americanism.”
Can Africa turn to other alternative partners ?
On one hand, South Africa is a member of the BRICS, so they can see the other members ( Brazil, Russia, India and China) as alternative partners. Indeed, China, has reassured South Africa that they will remain a “trustworthy and reliable” friend and partner. Moreover, China is ready to offer assistance to South Africa whithin its capacity. Both of the states discussed the bilateral issues during the G20 in Johannesburg. « China and South Africa have always understood and supported each other, carrying out close exchanges, communication and coordination, which demonstrates the high level of bilateral relations, » the Chinese foreign minister stated.
On the other hand, Ramaphosa reaffirmed South Africa’s commitment to its relationship with Beijing, saying: « South Africa is willing to deepen practical cooperation in various areas with China and to advance the all-round strategic cooperative partnership between South Africa and China. »
Conclusion
To conclude, South Africa’s land reform has sparked a major diplomatic conflict with the U.S. This led to aid cuts and the possible loss of AGOA benefits. While the Expropriation Act aims to correct historical injustices, it faces strong opposition from Trump and U.S. lawmakers.This situation highlights the complex link between domestic policies and international trade. Now, South Africa must weigh the costs and benefits of its stance as it navigates shifting global alliances
