Donald Trump Shuts Down USAID to South Africa: What Now?

In a significant policy shift, U.S. President Donald Trump has signed an executive order halting funding from the United States Agency for International Development (USAID) to South Africa, citing concerns over the country'sland expropriation laws and its legal actions against Israel at the International Court of Justice. The decision, issued last Friday, Feb. 7, has profound implications for South Africa's non-governmental organizations (NGOs) and broader socio-political landscape.

The U.S. government contends that South Africa's land reform policies unfairly target white landowners, particularly Afrikaners, which it has designated a refugee group eligible for asylum in the United States. "The United States shall promote the resettlement of Afrikaner refugees escaping government-sponsored race-based discrimination, including racially discriminatory property confiscation,"The White House stated.

Financially, the impact on the country is immediate and substantial. In 2024, USAID provided South Africawith over $320 million in funding, with the lion's share going to health initiatives. Support also covered education and economic development programs, among others. Many NGOs that depend on this funding now face an uncertain future.

Welcome Dennis Witbooi, founder of BrightSpark Foundation SA, which aids predominantly Coloured and Black communities impacted by gang violence, expressed deep concern to OkayAfrica: "When two elephants fight, the grass suffers." He added, "The people on the ground who are not part of these political misunderstandings are the ones who will suffer most."

Witbooi noted that the funding cut has already affected his organization and many others, "We've relied on American donors for years. Some of them are now pausing their support until the political situation stabilizes," he explained. "Families, children and youth who need our programs are left waiting. And waiting means unemployment rises, stress increases, and young people are left vulnerable."

Sabrina Walter, founder of Women For Change, an NGO advocating against gender-based violence and femicide, warned of severe consequences for South Africa's NGO sector. "The withdrawal of funding by President Trump will have a ripple effect globally, putting countless jobs and livelihoods at risk," she said to OkayAfrica. "Many organizations have already been forced to halt programs."

Her organization, which operates without foreign funding, has witnessed firsthand the challenges NGOs face in securing financial support. She believes the loss of U.S. aid will only deepen this crisis.

In light of funding cuts, South Africa may need to explore alternative financial options. One possibility is to strengthen ties with its BRICS allies — Brazil, Russia, India and China — which havebeen expanding their economic and political influence in the region.

China, in particular, has heavily invested in South Africa's infrastructure and development projects, including a $220 millioncement plant in Limpopo in 2013 and a5G partnership with MTN and Huawei in November 2024. Russian support has also increased recently, with Russian companies investing in South Africa'soil and gas sector andexploring nuclear power projects.

Witbooi sees the trend as an opportunity for self-sufficiency. "This situation forces us to rethink our dependency on foreign aid," he said. "We need to look at strengthening partnerships within our own country and region."

Musk has also claimed that white South Africans face widespread persecution, echoing narratives promoted by right-wing groups. In a recent post on X, he called for immediate sanctions against Julius Malema, leader of the Economic Freedom Fighters (EFF), labeling him an "international criminal."

Malema responded defiantly, stating that Musk's comments would not deter him from advocating for Black South Africans. "We should not be confused with a generation of cowards who can be bullied by imperial forces and power-hungry individuals," he said in a State of the Nation Address on Tuesday, Feb. 11. "The United States of America has bullied nations before and imposed senseless and arbitrary sanctions and threatened wars."

Witbooi is skeptical of Musk's intentions. "He poses a significant threat if he is not kept in check. He has the influence and resources to do more harm than good," he stated.

Walter views Musk's influence as part of a larger issue. "Elon Musk's reach extends far beyond business and technology," she said. "His close ties to Trump and his ability to shape narratives make him a significant player in political and economic discourse."

Political analyst Sean Jacobs connects Musk's rhetoric to broader political trends. In his newsletter, Africa is Not a Country, he argued that Afrikaner advocacy groups, such as AfriForum, have seized on Trump's executive order to push for special treatment within South Africa rather than using it as an opportunity to unite against what he describes as "political blackmail."

"Afrikaner political organizations have used their time and platforms to try to leverage the executive order to secure concessions from the government they don't deserve. They fail to recognize that sacrifices are necessary at some point — just as Black people have had to make since the end of apartheid," he wrote.

Jacobs noted that while executive orders often have varying levels of impact, they can significantly influence public opinion and take up time and energy. He commented that the South African government has mostly avoided responding to such pressures lately, with President Cyril Ramaphosa maintaining a firm stance.

As South Africa grapples with the fallout from the USAID cuts, the government must decide how to replace lost funding. While turning to BRICS nations is one option, NGOs may also need to strengthen domestic partnerships. Witbooi suggested that South Africa could emerge from this crisis with a more sustainable funding model. "At the end of the day, we have to take care of our own," he said. We have to build something that isn't vulnerable to the decisions of foreign leaders."