Experts call for cool heads amid tensions between SA and US
On Friday, US President Donald Trump froze aid to South Africa alleging land is to be 'seized' from white farmers.
President Cyril Ramaphosa.
JOHANNESBURG - Political and economic pundits have called for cool heads amid what appears to be deepening tensions between South Africa and the United States (US).
This as US President Donald Trump and some in his administration continue to criticise South Africa for its land reform policies including the Expropriation Act.
Since the Expropriation Act was assented into law in January, fresh concerns have emerged about Trump’s false framing of land grabs and the consequences for private property in South Africa.
READ: Trump freezes aid to South Africa, citing law to 'seize' land
Trump’s focus on South Africa and the perceived interference in domestic policy puts the country in an awkward position.
But economist Dale McKinley said South Africa is not the only one that stands to lose if trade relations with the US sour.
“If Donald Trump tries to double down on these things, then we basically say, okay what we're gonna do is open new markets and we’re going to trade with new people. United States are not the only ones here. What I’m trying to say is when you have comparative advantage in one aspect, you can leverage that but you need to be careful in the way in which you present that.”
Wits Business School Professor Jannie Rossouw said managing the tensions will be a fine balancing act.
“Our international diplomats should really do their job, and put the minds of the policymakers in the US at ease and convey to them clearly what South Africa’s policies are.”
ELON MUSK’S INVESTMENT
Meanwhile, big tech investment into South Africa by billionaire Elon Musk is up in the air amid the diplomatic squabble between Pretoria and Washington.
Musk recently backed Trump when he made inflammatory comments about the Expropriation Act, falsely suggesting that land grabs are on the up.
In September 2024, President Cyril Ramaphosa met with Musk in New York.
At the meeting, it’s understood Ramaphosa sold South Africa as a viable investment destination for the co-founder of Tesla and SpaceX.
The attempt to tighten ties with the 53-year-old business mogul came on the back of talks for Musk’s Starlink satellite internet service to expand its market share in SA, pending regulatory approval.
READ: Elon Musk's Starlink must comply with local BEE laws, says Parly comms committee
But with the latest developments between sa and the u-s, Rossouw said it’s hard to tell if Musk will still have an appetite to invest on SA shores.
“It’s always difficult to try and speculate what Mr musk will do next. Mr Musk is very difficult to predict under the best of circumstances.”
Bloomberg previously reported that the South African government would allow Starlink to establish itself locally in exchange for a significant investment from Tesla.