S’African assets drop after Trump announces funding cut

• Published On: 03 February 2025 at 19:53

South Africa's rand, stocks, and government bonds all fell Monday after US President Donald Trump announced plans to cut funding to the country.

The rand was trading at 18.8975 against the US dollar early Monday, about 1% lower than its closing value on Friday.

On Sunday, Trump claimed, without providing evidence, that "certain classes of people" in South Africa were being treated "very badly" and announced that aid would be suspended until an investigation was conducted.

He also referred to South Africa's land expropriation, citing legislation signed by President Cyril Ramaphosa a week earlier that allows the state to seize land in the public interest under certain conditions.

South Africa's foreign ministry responded on Monday, saying that the expropriation was not unusual.

It also expressed confidence that Trump's advisors would use the investigation period to gain a comprehensive understanding of South Africa's policies.

Over the weekend, Trump imposed broad tariffs on Canada, Mexico, and China, sending global currencies to multi-year lows.