As the world assesses the political and economic impact of Donald Trump’s presidency, questions arise about how his policies might ripple through markets well beyond the United States.
In South Africa, one sector likely to be affected is the property market, which could experience both direct and indirect effects from the global shifts and policies instigated by the new US administration.
Adrian Goslett, regional director and CEO of RE/MAX of Southern Africa, stressed that global political changes always influence local markets.
“While the South African property market is mainly shaped by domestic factors such as interest rates, inflation, and local investor confidence, the broader international environment—especially US policies—cannot be overlooked,” he said.
A key factor to watch is the strength of the rand against the US dollar. Under Trump’s presidency, his “America First” economic policies often led to market fluctuations and volatility in emerging market currencies, including the rand.
A weaker rand raises the cost of imports and could contribute to inflation, which in turn might put pressure on the South African Reserve Bank to increase interest rates.
Higher rates typically make it more expensive for homebuyers and could reduce demand in the property market.
However, there are potential benefits as well, Goslett said, noting out that global uncertainty often drives high-net-worth individuals to invest in property in stable markets.
“South Africa’s real estate market offers attractive opportunities for foreign investors looking for value. This could help offset some of the negative effects of broader global economic challenges,” he said.
Ultimately, the South African property market is influenced by a variety of factors, and while Trump’s policies might not immediately or dramatically affect it, they could have an indirect influence on the market’s performance over time.
The US president on Sunday announced that the United States would halt all aid to South Africa in response to the country’s land expropriation policies, triggering a sharp selloff of the rand.
“The United States won’t stand for it, we will act,” Trump wrote in a post on Truth Social on Sunday evening. “Also, I will be cutting off all future funding to South Africa until a full investigation of this situation has been completed!”,
In the wake of the announcement, the rand moved above R19 to the dollar, before recovering slightly to R18.95 in Monday trade.
In response, the South African government said it is “looking forward to engaging” with United States of America (US) president Donald Trump’s administration on bilateral relations and other issues.
Trump said on Truth Social: “South Africa is confiscating land and treating certain classes of people VERY BADLY (sic). It is a bad situation that the Radical Left Media doesn’t want to so much as mentioned.
“A massive Human Rights VIOLATION (sic), at a minimum, is happening for all to see. 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!”
However, the new Act states that property may not be expropriated arbitrarily or for a purpose other than a public purpose or in the public interest, president Ramaphosa’s department said.
The Expropriation Act, which underwent a five-year public consultation process, was deliberated in Parliament, and is in line with the South African Constitution.
The Act repeals the Expropriation Act of 1975 and allows for the state to expropriate land in the public interest – subject to just and equitable compensation, the government said.
On Monday morning, the Presidency committed to engaging the US on the new Act.
“The recently adopted Expropriation Act is not a confiscation instrument, but a constitutionally mandated legal process that ensures public access to land in an equitable and just manner as guided by the constitution.
“South Africa, like the United States of America and other countries, has always had expropriation laws that balance the need for public usage of land and the protection of rights of property owners.
“We look forward to engaging with the Trump administration over our land reform policy and issues of bilateral interest. We are certain that out of those engagements, we will share a better and common understanding over these matters,” the Presidency said.
Government has not confiscated any land
The Presidency has also refuted any allegations that land has been confiscated by the state.
“South Africa is a constitutional democracy that is deeply rooted in the rule of law, justice and equality. The South African government has not confiscated any land.
“The US remains a key strategic political and trade partner for South Africa. With the exception of PEPFAR [U.S. President’s Emergency Plan for AIDS Relief] Aid, which constitutes 17% of South Africa’s HIV/AIDS programme, there is no other significant funding that is provided by the United States in South Africa,” the Presidency said.