President Cyril Ramaphosa has addressed threats from US President Donald Trump to cut funding to South Africa over the country’s new expropriation laws, stating that South Africa is ready to “engage” on the matter and work toward a “common understanding.”
Trump took to his ‘Truth’ social media platform on Sunday night, accusing South Africa of “confiscating land and treating certain classes of people very badly,” referring to the Expropriation Act that President Ramaphosa signed into law in January.
He pledged to “(cut) off all future funding to South Africa until a full investigation of this situation has been completed.”
In response, the presidency rejected Trump’s claims, stating that the South African government has not confiscated any land and that the new laws are not designed for such actions.
“The recently adopted Expropriation Act is not a confiscation instrument, but a constitutionally mandated legal process that ensures public access to land in an equitable and just manner as guided by the constitution.
“South Africa, like the United States of America and other countries, has always had expropriation laws that balance the need for public usage of land and the protection of rights of property owners.”
Ramaphosa stated that constitutional democracy in South Africa is firmly grounded in the rule of law, justice, and equality. He expressed his eagerness to “engage” with the Trump administration regarding the country’s land reform policy.
“We are certain that out of those engagements, we will share a better and common understanding over these matters,” he said.

The presidency noted that the United States is a key strategic political and trade partner for South Africa.
The office also downplayed the impact of Trump’s moves to cut funding.
“With the exception of PEPFAR Aid, which constitutes 17% of South Africa’s HIVAids programme, there is no other significant funding that is provided by the United States in South Africa,” it said.
AGOA will expire in September 2025.
According to trade union Solidarity, US government-funded projects in South Africa were valued at over $400 million (R7.6 billion) in 2024, with a significant focus on combating HIV/AIDS.
The union also highlighted that South African universities received funding from the US government.
Trump’s statement caused market uncertainty, pushing the rand to over R19/$ before it recovered on Monday morning.
There have been concerns about the potential impact of the Trump administration’s tariff disputes with key trading partners on the broader market, as well as the specific implications for South Africa’s participation in the African Growth and Opportunity Act (AGOA).
AGOA grants duty-free access to the US market for a significant portion of South African exports, which totalled more than R55 billion in 2022, including motor vehicles, fruit, and wine.
The United States is South Africa’s second-largest export partner, with R61.49 billion worth of South African goods exported to the US in the first five months of 2024.