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U.S. Halts Foreign Aid to South Africa Under Trump Order

U.S. Halts Foreign Aid to South Africa Under Trump Order

Taha Sakr
Last updated: March 6, 2025 9:29 pm
By Taha Sakr 4 Min Read
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U.S. Halts Foreign Aid to South Africa Under Trump Order
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The United States has suspended most foreign aid to South Africa under an executive order issued by President Donald Trump, citing alleged discrimination against the country’s white Afrikaner minority, according to a State Department cable seen by The Guardian.

The directive, signed by Secretary of State Marco Rubio, orders an immediate pause on aid disbursements, with limited exceptions, as part of the implementation of Executive Order 14204. The order, issued on Feb. 7, is part of a broader review of U.S. foreign assistance.

“To effectively implement EO 14204, all bureaus, offices, and missions shall pause all obligations and/or disbursements of aid or assistance to South Africa,” the cable states.

The only major exemption is the President’s Emergency Plan for AIDS Relief (PEPFAR), which funds HIV/AIDS treatment programs for millions in South Africa. All other assistance programs require special approval, even if previously granted exceptions under a January review.

Tensions Over Land Reform, Musk Influence

The order cites “unjust racial discrimination” against white South Africans, particularly Afrikaners, descendants of Dutch settlers who implemented apartheid, which ended in 1994. The decision follows Trump’s criticism of South Africa’s land expropriation law, which allows the government to seize land without compensation in certain cases.

South African President Cyril Ramaphosa has dismissed the claims as misinformation, saying the law aims to address historical land inequities without targeting specific racial groups.

Trump’s move comes amid growing scrutiny of South Africa’s policies from right-wing figures in the U.S., including South African-born billionaire Elon Musk, a Trump ally who has criticized Pretoria for “openly racist policies.” Musk, who chairs a government efficiency team in the Trump administration, is seen as a key influence on the decision.

Diplomatic Strains and Trade Uncertainty

The aid suspension adds to mounting tensions between the two countries, which have historically maintained strong diplomatic ties. Trump has also criticized South Africa’s role in a genocide case against Israel at the International Court of Justice (ICJ) and recently offered special refugee status to white Afrikaners seeking to relocate to the U.S.

The freeze follows South Africa’s announcement that it is preparing a new trade proposal for the Trump administration as officials anticipate a possible end to the African Growth and Opportunity Act (AGOA), which allows billions of dollars in duty-free exports to the U.S.

Earlier on Thursday, Pretoria also acknowledged Washington’s withdrawal from the Just Energy Transition Partnership (JETP), a multilateral initiative to support South Africa’s transition to renewable energy. The U.S. had already canceled previously approved climate projects after Trump revoked international climate finance commitments.

Next Steps

Under the new directive, Trump administration official Pete Marocco, a foreign aid skeptic, has been given authority to review individual programs. According to the State Department cable, there will be “a very high bar” for approving exceptions.

The South African government has not yet responded to the latest developments.

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