The US leader also said that he would cut off all future funding to the country. Picture: REUTERS / Siphiwe Sibeko
THE RAND weakened on Monday morning after President Donald Trump said that South Africa was "confiscating" land and "treating certain classes of people very badly".
The US leader also said that he would cut off all future funding to the country.
On Friday the rand was trading at around R18.64 at the close of business but by 8:30am on Monday the rand had lost ground and was trading at around R18.95.
Trump’s comments came after President Cyril Ramaphosa signed a new law two weeks ago making it easier for government to expropriate land, subject to equitable compensation paid.
The US leader said on his social media platform, Truth Social that America will not stand for this and will act.
He will only send future funding to South Africa once a full investigation has been conducted.
The South African Chamber of Commerce in the USA (SACCUSA) expressed deep concern over the possible impact on SA business after Trump’s comments on Sunday.
The organisation said that Trump’s actions raise serious concerns for the South African business community, particularly in light of the longstanding economic and trade relationship between the two nations.
“The US 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,” the Chamber explained.
“South Africa exported over $6.5 billion (R123 billion) worth of goods to the US under AGOA in 2024, supporting key industries such as automotive manufacturing, agriculture, and mining. The potential revocation of AGOA benefits would significantly impact South African businesses, leading to job losses and economic instability.”
The Chamber said that SA’s continued eligibility under AGOA is 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 businesses in both nations.
While SA and the US remain committed to constructive engagement as international partners, SACCUSA urged all stakeholders to continue diplomatic engagement and ensure that policy discussions are based on finding amicable solutions.
IOL
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