The US government has stopped most foreign aid to South Africa. The decision follows an order from former President Donald Trump. A leaked cable, first reported by The Guardian, confirms the suspension. Only a few programs remain active.
On February 7, Trump signed Executive Order 14204. The order targets what his administration calls “serious violations” by South Africa. The State Department acted immediately. Secretary of State Marco Rubio signed the directive. All financial aid stopped at once. Agencies must now get approval before making payments.
Dispute Over Land Policies
The Trump administration claims white South Africans face discrimination. They point to the country’s land reform laws. The government has proposed policies to redistribute land. The goal is to fix past injustices. However, critics say it targets white landowners unfairly.
South African President Cyril Ramaphosa rejects these claims. He says the reforms follow the law. He also calls Trump’s statements “misleading.” The South African government insists land redistribution will be legal and rare. Officials argue the country needs change to fix economic imbalances.
Elon Musk’s Role in the Decision
Elon Musk, a billionaire born in South Africa, has influenced the decision. He has criticized the land policies, calling them “openly racist.” As a Trump supporter, he has used his position to push for stricter actions. Musk leads the administration’s government efficiency team. He supports cutting foreign aid, especially to countries with policies he opposes.
Trump has chosen Pete Marocco to oversee aid exceptions. Marocco is known for reducing aid programs. He worked at USAID and the State Department before. Now, he ensures waivers are rare. Only a few programs will keep funding. The US global HIV/AIDS program, Pepfar, remains active. All other aid programs need special approval.
Growing Tensions and Economic Risks
The aid freeze increases tension between the two countries. Trump has accused South Africa of unfair treatment toward white citizens. The South African government strongly denies this. Officials argue that reforms aim to fix past land seizures. The goal is a balanced economy, not discrimination.
Trump has also criticized South Africa’s role in a major international case. The country is leading a genocide case against Israel at the International Court of Justice. The case has drawn global attention. Trump and his allies see it as a political move. This dispute has worsened relations between the US and South Africa.
Trump has also offered refugee status to wealthy white Afrikaners. His administration argues they are at risk due to land reform. This move has added to diplomatic tensions. South African officials call it “unnecessary interference.”
Trade and Climate Concerns
The timing of the aid freeze raises concerns for South Africa’s economy. The country planned to propose a new trade deal with the US. However, officials now fear Trump may cut trade benefits. South Africa has long benefited from the African Growth and Opportunity Act (AGOA). The act allows African countries to export goods to the US without tariffs. Billions of dollars depend on this agreement. If Trump removes South Africa, the economy could suffer.
On the same day as the aid suspension, the US withdrew from a key climate deal. South Africa confirmed that the US left the Just Energy Transition Partnership (JETP). The partnership funded environmental projects. Trump has cut all international climate financing. This decision affects green energy plans in South Africa. Officials worry about the impact on future projects.
Uncertain Future
The US State Department has not commented on these decisions. However, many expect more changes. Trump has focused on reshaping US foreign aid. South Africa now faces financial pressure. The country may need to adjust policies to maintain trade and diplomatic ties.
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