President Trump halts aid to South Africa over a new land expropriation law that allows seizure of property without compensation, sparking a diplomatic crisis with global implications.
Key Takeaways
- South Africa’s Expropriation Act, signed January 23, 2025, allows property seizure with or without compensation under specific circumstances, primarily targeting land redistribution.
- President Trump has cut US financial aid to South Africa and issued an executive order offering refugee status to Afrikaner farmers, citing racial discrimination concerns.
- The African National Congress (ANC) defends the law as constitutional justice, while critics, including the Democratic Alliance, warn it could trigger economic collapse similar to Zimbabwe’s land reform failures.
- South Africa’s land ownership remains heavily skewed with white South Africans (7% of population) owning approximately 70% of commercial farmland.
- The diplomatic tension is compounded by South Africa’s ICJ case against Israel over Gaza, which the US opposes.
Constitutional Crisis or Historical Justice?
The Expropriation Act, signed into law by South African President Cyril Ramaphosa on January 23, 2025, replaces legislation from 1975 and establishes a framework for government acquisition of private property. The most controversial aspect allows for expropriation without compensation when land is deemed unused or abandoned. Land Reform Minister Mzwanele Nyhontso has positioned the law as addressing historical injustices dating back to colonial and apartheid eras, when Black South Africans were systematically dispossessed of their lands.
“The Expropriation Act intends to take the land and redistribute it, legally… We use this act as an opportunity to advance the cause [of activists] for land restoration and land justice,” said Mzwanele Nyhontso, Land Reform Minister.
The Democratic Alliance (DA) and Freedom Front Plus have vigorously opposed the legislation, filing constitutional challenges in court. The opposition argues that property rights are fundamental to a functioning democracy and economy. The law distinguishes between “public purpose” and “public interest” as justifications for expropriation, a significant shift from previous legislation. Critics point to Zimbabwe’s disastrous land reform program, which led to economic collapse, as a cautionary tale of what could happen in South Africa.
Trump’s Intervention Sparks Diplomatic Row
President Trump has taken decisive action in response to South Africa’s controversial land law, issuing an executive order that cuts financial aid and offers refugee status to Afrikaner farmers. The order explicitly characterizes the Expropriation Act as targeting ethnic minority Afrikaners’ agricultural property. This dramatic step follows months of tension as the Biden administration’s policies toward Africa are reversed. Trump’s intervention has been welcomed by organizations like AfriForum that advocate for minority rights in South Africa.
“In shocking disregard of its citizens’ rights, the Republic of South Africa (South Africa) recently enacted Expropriation Act 13 of 2024 (Act), to enable the government of South Africa to seize ethnic minority Afrikaners’ agricultural property without compensation,” stated Donald Trump, President of the United States.
The Ramaphosa administration has vehemently denied these characterizations, insisting the law is constitutional and necessary for equitable land access. A meeting between President Trump and President Ramaphosa is reportedly being arranged to address the deteriorating relations between the two nations. Adding fuel to the diplomatic fire, Elon Musk, a key Trump ally with South African roots, has publicly criticized the law and claimed it affects his business interests in the country.
Land Inequality and Economic Risks
South Africa’s land ownership remains heavily skewed along racial lines, with white South Africans, who make up roughly 7% of the population, owning approximately 70% of commercial farmland. This disparity is a direct legacy of colonial and apartheid policies that systematically denied Black South Africans property rights. The new law aims to accelerate land redistribution to marginalized groups, including Black citizens, women, and people with disabilities, addressing what many see as a fundamental economic injustice.
“There’s a slogan that says… ‘the land shall belong to those who work the land’. I was 13 years old when I started working on the land and I’m over 60 now, and I still haven’t got land,” said Bettie Fortuin, community activist.
Economic experts warn that property rights uncertainty could devastate investment in South Africa’s already struggling economy. Zimbabwe’s experience looms large in these discussions. After seizing white-owned farms without compensation in the early 2000s, Zimbabwe experienced hyperinflation, food shortages, and economic collapse. Agricultural production plummeted as farms were given to politically-connected individuals without farming experience. The Democratic Alliance has specifically cited this example in their court challenges, arguing that “Every country has legislation to ensure a state can, with fair compensation, build public infrastructure, but this Act goes too far outside these accepted international norms.”
