Trump tweets about South Africa’s land reforms causing the rand to drop

President of the United States, Donald Trump took to Twitter on Thursday, after allegedly requesting former CIA Director Mike Pompeo, who is now the Secretary of State to look in to South Africa’s policy of Land Expropriation Without Compensation, in addition to the farmer killings.

 

Trump’s tweet caused a stir on South African social media platforms and talk radio, with some welcoming the tweet regardless of which side they stand in the land debate, while others pointed out the fact that Trump is misinformed about the actual situation on the ground.

The South African Rand suffered as a result of Trump’s tweet, dropping 1.8% against the dollar by 9:22 am this morning, with yields on benchmark 2026 government bonds rising by 4 basis points to 8.97% as reported by Bloomberg.com.

The Land reform policy which has yet to be initiated, (apart from open and public dialogue between South African politicians and invested stokeholders), has been very democratic and constitutional so far. The media scrutiny has also been very high at every stage of the process.

South African President Cyril Ramaphosa on Wednesday in Parliament’s question and answer session stated that land reform will not be land grabs, and his goal is to create a win-win situation for all the people of South Africa. He also said that land expropriation will begin with state owned land and unused land.

The US embassy will also be meeting with the South African Department of International Relations and Cooperation (DIRCO), so the South African government can gain some sort of clarification on Presidents Trumps tweet.

By Mokgethi Mtezuka’

 

 

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