The South African rand weakened following US President Donald Trump’s renewed criticisms of the country regarding land confiscation. Trump also announced a halt to federal funding and offered sanctuary to farmers he claims are in danger. South African officials reaffirmed their commitment to maintaining beneficial relations with the US amidst these developments.
The South African rand experienced a decline following renewed criticism from US President Donald Trump. Reportedly, the currency weakened by as much as 1.1%, settling at 18.2563 rand per dollar by 5:45 p.m. in Johannesburg. Trump’s remarks on his Truth Social account accused South Africa of confiscating farmers’ land, despite the absence of such actions since the end of White-minority rule in 1994.
In addition to his criticisms, Trump declared a cessation of all federal funding to South Africa and reiterated his offer of sanctuary for farmers he claims are fleeing danger. On February 7, he initiated an executive order halting assistance to the nation, promoting the resettlement of “Afrikaner refugees” escaping what he describes as race-based discrimination by the government.
South Africa, represented by presidency spokesperson Vincent Magwenya, clarified its intention not to engage in “megaphone diplomacy.” The nation expressed its dedication to fostering a mutually beneficial bilateral relationship with the United States through trade, political interaction, and diplomacy.
Trump’s comments followed a post by his ally, Elon Musk, who indicated that his Starlink internet service could not operate in South Africa due to legislative requirements mandating significant Black ownership. Musk attributed his reluctance to enter the market to laws aimed at rectifying the historical injustices of apartheid.
Recently, South Africa noted that the US informed it of withdrawing from a coal-transition agreement, in which the US had pledged $1 billion. Moreover, Trump has rescinded numerous health-care programs across Africa, affecting South Africa significantly.
In a speech on February 6, South African President Cyril Ramaphosa conveyed resilience without directly referencing Trump. He stated, “We are not daunted to navigate our path through this world. We will not be deterred. We are, as South Africans, a resilient people, and we will not be bullied.”
The specific aspects of US federal funding that Trump intends to withdraw from South Africa remain ambiguous.
In summary, the South African rand has declined due to President Trump’s critical remarks regarding land confiscation and federal funding. Despite these challenges, South African leadership emphasizes resilience and a commitment to fostering bilateral relations with the United States. The impact of Trump’s actions, notably the cessation of federal funding and health-care programs, remains a significant concern for South Africa.
Original Source: www.livemint.com
