Cape Town — The South African Chamber of Commerce in the USA (SACCUSA) has expressed concern over US President Donald Trump’s decision to stop funding South Africa.
In a Truth Social Post, Donald Trump announced he would stop funding South Africa as it was “confiscating” land and mistreating certain classes of people.
Trump added that the media does not show this and it was a violation of human rights, adding that the funding would be stopped until a full investigation was done.
“The United States won’t stand for it, we will act. Also, I will be cutting off all future funding to South Africa until a full investigation of this situation has been completed!”
In a statement released on Facebook, SACCUSA expressed its concern about what Trump’s stop-funding may have on South African businesses, in light of the economic and trade relationship between South Africa and the USA.
“The U.S. is one of South Africa’s most significant trade partners, with the African Growth and Opportunity Act (AGOA) playing a crucial role in facilitating trade between the two economies,” SACCUSA President, Neil Diamond said. This includes support in key industries including automotive manufacturing, agriculture and mining.
Diamond said the revocation of AGOA benefits would impact South African businesses, leading to job losses and economic instability, while South Africa’s eligibility under AGOA remains crucial to sustaining bilateral trade.
“Any deterioration in relations, particularly involving economic assistance and trade agreements, could have widespread implications for both South African and American businesses,” he added.
South Africa and the US remain committed to engagement as international partners, SACCUSA urged stakeholders to continue diplomatic engagement and ensure discussions are held to find amicable solutions. Diamond said the government has addressed similar claims and said land reform efforts are carried out in the framework of the law.
The USA sent nearly $440 million to South Africa in 2024 for economic, healthcare and social support and a withdrawal of this support would pose a threat to trade agreements including AGOA.
SACCUSA also urged a need for diplomacy and constructive dialogue to strengthen economic ties, particularly as South Africa, as the current G20 Presidency holders, will pass it on to the US for 2026.
“SACCUSA remains committed to advocating for the interests of South African businesses in the United States and fostering a strong, mutually beneficial trade relationship between the two nations. We call on business leaders, policymakers, and diplomatic representatives to engage in fact-based discussions that support long-term economic stability and collaboration,” Diamond concluded.
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Compiled by Matthew Petersen
