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The US obligated nearly $440 million (R8.3 billion) in assistance to South Africa in 2024, supporting various economic, healthcare, and social initiatives.

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Sizwe sama Yende

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The South African Chamber of Commerce in the USA (SACCUSA) is concerned that US president Donald Trump’s threat to plug all funding towards South Africa could also jeopardise the country’s export market valued at $6.5 billion (R1.2 trillion) in 2024.

Trump has reacted negatively to the country’s Expropriation Act that President Cyril Ramaphosa recently signed to repeal the pre-democracy Expropriation Act of 1975. The Act sets out how organs of state may expropriate land in the public interest for varied reasons.

It has however also caused ructions within Ramaphosa’s Government of National Unity that have seen the DA and the IFP expressing their vehement opposition as they believe that it undermines property rights and may jeopardise investor confidence.

Trump said on X: “South Africa is confiscating land, and treating certain classes of people VERY BADLY. It is a bad situation that the Radical Left Media doesn’t want to so much as mention.A massive Human Rights VIOLATION, at a minimum, is happening for all to see. The United States won’t stand for it, we will act. Also, I will be cutting off all future funding to South Africa until a full investigation of this situation has been completed!”

SACCUSA has a seat in Washington DC and is dedicated to fostering trade, investment, and business relationships between South Africa and the United States, and supports businesses in navigating the transatlantic economic landscape.

SACCUSA president, Neil Diamond,  that the chamber was deeply concerned by Trump’s statement over the possible impact on South African business.

Diamond said that the suggestion that U.S. funding to South Africa may be cut raised serious concerns for the South African business community particularly in light of the longstanding economic and trade relationship between the two nations.

“The U.S. is one of South Africa’s most significant trade partners, with the African Growth and Opportunity Act (AGOA) playing a crucial role in facilitating trade between the two economies. South Africa exported over $6.5 billion worth of goods to the U.S. under AGOA in 2024, supporting key industries such as automotive manufacturing, agriculture, and mining,” he said.

“The potential revocation of AGOA benefits would significantly impact South African businesses, leading to job losses and economic instability.”

AGOA allows duty-free access to the US market for certain exports from South Africa and other sub-Saharan African countries.

Diamond said that South Africa’s continued eligibility under AGOA was critical to sustaining bilateral trade, supporting thousands of jobs, and fostering economic development. Any deterioration in relations, particularly involving economic assistance and trade agreements, could have widespread implications for both South African and American businesses.

“While South Africa remains committed to constructive engagement with its international partners, SACCUSA urges all stakeholders to continue diplomatic engagement and ensure that policy discussions are based on finding amicable solutions. The South African government has previously addressed similar claims, highlighting that land reform efforts are carried out within the framework of the law and the country’s constitutional commitments,” he said.

The US obligated nearly $440 million (R8.3 billion) in assistance to South Africa in 2024, supporting various economic, healthcare, and social initiatives.

Diamond said that any potential withdrawal of this support, along with threats to review trade agreements such as AGOA, could significantly impact critical sectors and communities reliant on these partnerships.

“As South Africa holds the G20 presidency before the United States assumes the role, SACCUSA emphasises the need for diplomacy and constructive dialogue to strengthen economic ties and address concerns through appropriate channels. We encourage South Africa to pursue diplomatic solutions to prevent any unexpected action from the White House that could negatively impact trade and investment relations.”