The South African rand has fallen in early trading today following Donald Trump’s announcement to withdraw funding from South Africa. At 6:30 am (UK time), the rand was valued at 18.96 against the US dollar, reflecting a decline of approximately 1.4% from its closing value on Friday. Yesterday, Trump claimed—without providing evidence—that “certain classes of people” in South Africa were experiencing “very bad” treatment and stated that he would halt aid until the situation could be examined.
He mentioned that South Africa was seizing land shortly after President Cyril Ramaphosa enacted legislation permitting the state to expropriate land in the public interest under specific conditions. Previously, we noted that Ramaphosa expressed interest in discussing with Donald Trump the possibility of halting financial support for South Africa.
