DeepSeek: Will spending on chip infrastructure be impacted?

<figure class="wp-block-image size-full"><img loading="lazy" decoding="async" width="5000" height="3467" src="https://cms.cnbcafrica.com/wp-content/uploads/2025/02/33NPQPB6S5KGJPHSP3RWXXTEIM.avif" alt="" class="wp-image-582009"/><figcaption class="wp-element-caption">U.S. President Donald Trump speaks to reporters after stepping from Air Force One upon his return to Washington, at Joint Base Andrews in Maryland, U.S., February 2, 2025. REUTERS/Kevin Lamarque </figcaption></figure>



JOHANNESBURG, Feb 3 (Reuters) &#8211; President Cyril Ramaphosa defended South Africa&#8217;s land policy on Monday after Donald Trump&#8217;s threat to cut off funding because of what he said were land confiscations.



Trump said the previous day, without citing evidence, that &#8220;South Africa is confiscating land&#8221; and &#8220;certain classes of people&#8221; were being treated &#8220;very badly&#8221;. He would cut funding until the matter was investigated, he said.



<h2 class="wp-block-heading" id="h-what-is-trump-talking-about">WHAT IS TRUMP TALKING ABOUT?</h2>



The U.S. president did not specify who was being &#8220;treated badly&#8221;, but the land reference suggests he&#8217;s referring to white landowners who still possess three quarters of South Africa&#8217;s freehold farmland.



This contrasts with 4% owned by Blacks, according to the latest 2017 land audit, who make up 80% of the population, compared with about 8% for whites.



Partly in an effort to redress this imbalance, Ramaphosa signed a law last month allowing the state to expropriate land &#8220;in the public interest&#8221;, in some cases without compensating the owner, despite objections from the main partner in his coalition government, the mostly white-led Democratic Alliance.



No land has yet been expropriated under the act.



<h2 class="wp-block-heading" id="h-how-did-we-get-here">HOW DID WE GET HERE?</h2>



South Africa has a history of colonial conquest and dispossession which pushed the Black majority into crowded urban townships and rural reserves.



The country&#8217;s British imperial masters gave most farmland to whites. In 1950, the Afrikaner National Party, representing descendants of Dutch settlers, passed a law taking 85% of territory for themselves and kicking 3.5 million Black people off their ancestral homelands.



In the 30 years that the African National Congress (ANC) has been in power, some land restitution has happened under a &#8220;willing buyer, willing seller&#8221; model, but critics have denounced it as painfully slow and accuse white landowners of hoarding.



<h2 class="wp-block-heading" id="h-what-is-the-expropriation-act-and-why-is-it-controversial">WHAT IS THE EXPROPRIATION ACT AND WHY IS IT CONTROVERSIAL?</h2>



The law has been the subject of lengthy and often acrimonious debate for years. It repeals a past expropriation act that South Africa&#8217;s apartheid rulers had used to seize land off the Black majority.



The ANC&#8217;s most powerful rival in its increasingly fractious coalition, the DA, argues that land expropriation is unconstitutional, violates basic property rights and will deter badly-needed foreign investment.



However, the party put out a statement on Monday expressing concern over Trump&#8217;s threat and correcting a misconception that the act allows land to be seized arbitrarily.



After years of exhaustive parliamentary debate, the law is carefully worded. It forbids seizing land unless it can be demonstrated it is in the public interest. It also requires authorities to first try to reach an agreement with the owner.



<h2 class="wp-block-heading" id="h-what-can-trump-do-to-south-africa">WHAT CAN TRUMP DO TO SOUTH AFRICA?</h2>



The United States committed nearly $440 million in assistance to South Africa in 2023, according to the most recent U.S. government data.



Ramaphosa said U.S. funding accounted for 17% of South Africa&#8217;s HIV/AIDS programme but it was reliant on &#8220;no other significant funding&#8221; from the United States.



U.S. data backs that up, with $315 million going to HIV/Aids, and much smaller sums going to other health issues, farming, education, trade policy and energy.



A much bigger worry than aid is trade: a quarter of South Africa&#8217;s $15 billion exports to the U.S. get preferential tariffs under the African Growth and Opportunities Act (AGOA), according to a 2023 AGOA factsheet, while South Africa estimates AGOA makes up 2% of its total exports.



<h2 class="wp-block-heading" id="h-white-genocide">&#8216;WHITE GENOCIDE&#8217;?</h2>



During his first administration, Trump said the U.S. would investigate large-scale killings of white farmers in South Africa and violent takeovers of land.



There is no evidence of such killings or takeovers of land, of the sort that did happen in Zimbabwe in 2000.



In 2023, Trump&#8217;s ally, South African-born Elon Musk accused the government of seeking a &#8220;genocide of white people.&#8221;



That notion, which circulates in far-right chat rooms, attempts to link land reform to murders of white farmers during robberies, saying the killings are acts of state-sponsored ethnic cleansing aiming to scare them off their land.



Of the roughly 20,000 murders committed in South Africa every year, around 50 of them are of white farmers.



Most of the victims are Black.



(Reporting by Tim Cocks; Editing by Ros Russell)

33NPQPB6S5KGJPHSP3RWXXTEIM

What is behind Trump’s aid threat to South Africa over land?

<div class="wp-block-image">
<figure class="aligncenter size-large"><img loading="lazy" decoding="async" width="820" height="635" src="https://cms.cnbcafrica.com/wp-content/uploads/2025/02/David-Mparutsa-2024-1-820x635.jpg" alt="" class="wp-image-582005" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2025/02/David-Mparutsa-2024-1-820x635.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2025/02/David-Mparutsa-2024-1-300x232.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2025/02/David-Mparutsa-2024-1-116x90.jpg 116w, https://cms.cnbcafrica.com/wp-content/uploads/2025/02/David-Mparutsa-2024-1-768x595.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2025/02/David-Mparutsa-2024-1-1536x1190.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2025/02/David-Mparutsa-2024-1-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">David Mparutsa, Head of Enterprise and Supply Chain Development at Absa CIB</figcaption></figure></div>


In the late &#8217;80s, Anglo American pioneered an innovative supplier development model in South Africa. Through a suite of enterprise funds known as Zimele, the mining giant provided financial support to aspiring entrepreneurs from historically disadvantaged communities, leveraging its sector expertise and procurement networks as catalysts for fostering SME growth and driving broader, socially responsible economic development.



This marked a crucial turning point, showing how forward-thinking companies could use their resources to address systemic inequalities within their industries without the push of legislation.



Africa’s role in global commodity markets back then was largely extractive, with deeply established supply chains dominated by international corporations with extensive infrastructure, technical expertise, and capital—often leaving little room for local participation. Companies had little incentive to invest in local supplier development unless explicitly required to do so. This inertia was compounded by weak institutional capacity in many African nations during that period, making it challenging to enforce complex supplier development programmes or integrate local SMEs into established supply chains.



But as countries like South Africa established themselves as some of the continent’s foremost producers, their governments and enterprises leveraged this position to extract broader economic benefits, fostering greater upstream and downstream linkages within the sector.



With the world now moving towards a low-carbon future, the focus of African mining will inevitably shift towards critical minerals such as lithium, cobalt, nickel, copper, and rare earth elements. This presents a duality: while significant reserves in these critical minerals offer the continent immense opportunities to build new supplier development programmes incorporating integrated, value-added industries, it also subjects traditional mining operations to heightened scrutiny under stringent Environmental, Social &amp; Governance (ESG) frameworks impacting demand, profitability, and subsequently supplier development spend.



Suppliers will also undoubtedly face mounting pressure to align with stricter ESG standards. This extends beyond token sustainability measures, demanding substantive changes such as reducing carbon emissions across their supply chains, using renewable energy in production, and embedding circular economy principles into their operations. Mining companies, in turn, will expect their suppliers to demonstrate measurable contributions to shared sustainability goals, making ESG compliance a prerequisite rather than a differentiator.



One pathway forward could lie in fostering more robust regional supplier networks. Mining often operates in areas where local suppliers alone can’t meet the scale or technical requirements needed. By encouraging cross-border collaboration, countries can pool their expertise and resources to create a regional supply base. This kind of network leverages each country’s strengths, enabling suppliers to participate in larger and more competitive contracts.



At the same time, technological innovation will alter what it means to deliver value in mining supply chains. As automation, artificial intelligence, and advanced machinery take centre stage, suppliers must pivot to provide integrated solutions. This includes predictive maintenance tools, data analytics systems, and low-emission alternatives tailored to mining operations. Such advancements will necessitate significant investment in research and development, as well as new partnerships that bridge traditional supply chain boundaries.



To fully realise this potential, nations must prioritise innovation hubs that equip suppliers with the tools and insights needed to meet modern mining demands. These hubs would serve as incubators for local businesses, offering access to cutting-edge technology, research, and mentorship.



These complementary approaches don’t replace traditional supplier development programmes but rather expand and strengthen them. They build the infrastructure, relationships, and capabilities that empower local suppliers to move beyond the margins and take a central role in Africa’s mining value chains.



The success of such initiatives ultimately depends on fostering more meaningful beneficiation—particularly through the cultivation of advanced manufacturing capabilities. For decades, Africa’s mining sector has been predominantly oriented toward the export of raw materials, leaving the continent reliant on external markets for value-added goods. By prioritising local manufacturing, Africa can capture a greater share of the economic value generated by its resources, enabling resilient and diversified economies that are less susceptible to the volatility of global commodity markets.



Embedding manufacturing within the beneficiation process also carries profound implications for sustainability and innovation. Localising production not only reduces the carbon footprint associated with transporting raw materials to distant processing facilities but also strengthens transparency and alignment with ESG-compliant value chains. It also positions Africa as a critical hub in the global transition to low-carbon technologies, ensuring the continent plays an active role in shaping the industries of the future rather than remaining on the periphery.



The mining sector’s future in Africa will not be shaped solely by what lies beneath the ground but by the systems built above it. Countries must embrace bold, cross-border initiatives that foster not only competition but collaboration, enabling the continent to dictate the terms of its engagement in an increasingly demanding global marketplace.

David Mparutsa 2024 1

Evolving Supplier Development Alongside the Future of African Mining

<div class="wp-block-image">
<figure class="aligncenter size-large"><img loading="lazy" decoding="async" width="820" height="680" src="https://cms.cnbcafrica.com/wp-content/uploads/2025/02/Dean-Hack-Photo-1-820x680.jpg" alt="" class="wp-image-581999" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2025/02/Dean-Hack-Photo-1-820x680.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2025/02/Dean-Hack-Photo-1-300x249.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2025/02/Dean-Hack-Photo-1-109x90.jpg 109w, https://cms.cnbcafrica.com/wp-content/uploads/2025/02/Dean-Hack-Photo-1-768x636.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2025/02/Dean-Hack-Photo-1-1536x1273.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2025/02/Dean-Hack-Photo-1-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">Dean Hack, Director for Coverage, Resources &amp; Energy, Absa Securities United Kingdom </figcaption></figure></div>


The world is rewriting its rulebook. It’s no longer just about what you produce but how you produce it. For resource-rich regions like Africa, the implications are profound: the value of its vast reserves of critical minerals is now tied not only to their abundance but also to the ethical and sustainable frameworks governing their extraction and processing.



Emerging global policy shifts and tariff measures aimed at greener trade and decarbonised supply chains will undoubtedly put African mining under significant scrutiny – and whether this weight is merited or not depends on the lens through which it’s viewed.



From one perspective, this scrutiny is justified. The global climate crisis demands urgent action, and decarbonising industries like mining is an essential part of that response.



African mining cannot be an exception to this, especially since critical minerals like cobalt, lithium, and rare earths are central to enabling the green energy transition globally. For the world to achieve net-zero goals, every link in the supply chain – including mining – must contribute.



However, the counterpoint is equally valid: this pressure comes in a context of global inequity. African nations bear minimal historical responsibility for the carbon emissions driving climate change, yet they are being asked to shoulder significant burdens in the form of decarbonisation, often without sufficient financial or technological support.



Herein lies the paradox.



While the world’s green energy future depends on African minerals, developed ESG requirements risk leaving the continent’s mining industry less competitive and more isolated. Bridging this gap requires urgent solutions – targeted financing, infrastructure investment, and collaborative frameworks that enable African mining to align with global sustainability goals without undermining its economic stability.



The greatest and most immediate hurdle to overcome is the upfront capital required to make the transition to greener operations, and today’s financiers and investors are increasingly prioritising ESG-aligned projects over pure profitability. For African mining, this means that attaining future-fit financing is contingent on demonstrating tangible commitments and progress in three areas: environmental sustainability, social responsibility, and sound governance.



But this is easier said than done.


<div class="wp-block-image">
<figure class="aligncenter size-large"><img loading="lazy" decoding="async" width="820" height="605" src="https://cms.cnbcafrica.com/wp-content/uploads/2025/02/Chetan-Jeeva-1-1-820x605.jpg" alt="" class="wp-image-582000" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2025/02/Chetan-Jeeva-1-1-820x605.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2025/02/Chetan-Jeeva-1-1-300x222.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2025/02/Chetan-Jeeva-1-1-122x90.jpg 122w, https://cms.cnbcafrica.com/wp-content/uploads/2025/02/Chetan-Jeeva-1-1-768x567.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2025/02/Chetan-Jeeva-1-1-1536x1134.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2025/02/Chetan-Jeeva-1-1-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">Chetan Jeeva, Head of SA Corporate Lending at Absa CIB</figcaption></figure></div>


Green bonds, for example, are often touted as a silver bullet for sustainable financing, but their utility in the mining context isn’t straightforward. For one, issuing a green bond requires not only a level of transparency, reporting capability, and project predictability—areas where many African mining companies, particularly smaller operators, are still actively building capacity—but also a demonstrable commitment to financing green activities, such as renewable energy projects. Moreover, the bond market typically favours projects with a high degree of perceived stability and lower risk, often sidelining countries or companies that need this capital the most.



Sustainability-linked loans too, which allow mining companies to finance general operations while embedding green incentives into their borrowing structure, depend on clear, measurable targets. To date, these have often been tied to carbon reduction or water use. This requires sophisticated monitoring systems and ESG frameworks, which many African companies are still developing. In regions where even baseline ESG data collection is sporadic, it is difficult to ensure that these mechanisms don’t inadvertently exclude companies that have the will but not the capacity to track and report progress.



The real issue, therefore, is not the tools themselves but the systems in which they operate. The African mining sector needs a financing ecosystem that addresses inherent risk perception, builds local capacity for compliance and reporting, and prioritises projects that deliver both sustainability and economic impact. The mechanisms are valuable, but without structural reforms to how they’re deployed, there is a risk of designing solutions for a system that doesn’t yet exist in practice.



Future-fit financing therefore means investing not just in the mines but in the broader systems that support them. For example, financing renewable energy infrastructure that powers mining operations and surrounding communities or improving transportation networks to reduce the carbon footprint of mineral exports. These systemic investments are ESG-aligned by design, creating a feedback loop where the mining sector becomes a driver of regional development and resilience.



We should acknowledge that the path to a greener future for African mining requires tailored financing models that allow for a just transition, ensuring that workers, communities, and economies don’t bear the cost of compliance alone.



It’s about creating a mutually reinforcing cycle where ESG-driven investments make African mining more competitive, sustainable, and inclusive – where African minerals power the global energy transition, and African communities thrive as equal partners in that transformation.



Dean Hack, Director for Coverage, Resources &amp; Energy, Absa Securities United Kingdom and Chetan Jeeva, Head of SA Corporate Lending at Absa CIB

Dean Hack – Photo 1

Future-Fit Financing for African Mining Hinges on ESG

<div class="wp-block-image">
<figure class="aligncenter size-large"><img loading="lazy" decoding="async" width="820" height="595" src="https://cms.cnbcafrica.com/wp-content/uploads/2025/02/Tinyiko-Mahange-1-820x595.jpg" alt="" class="wp-image-581992" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2025/02/Tinyiko-Mahange-1-820x595.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2025/02/Tinyiko-Mahange-1-300x218.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2025/02/Tinyiko-Mahange-1-124x90.jpg 124w, https://cms.cnbcafrica.com/wp-content/uploads/2025/02/Tinyiko-Mahange-1-768x558.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2025/02/Tinyiko-Mahange-1-1536x1115.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2025/02/Tinyiko-Mahange-1-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">Tinyiko Mahange, Director, Investment Banking</figcaption></figure></div>


The African mining industry faces a defining moment. The demand for critical minerals such as copper, lithium, nickel, and rare earths continues to surge as economies pivot toward decarbonisation and renewable energy sources. These materials form the backbone of technologies like electric vehicles, wind turbines, and energy storage solutions.



For Africa, home to some of the largest reserves of these minerals, this presents both an opportunity and a challenge. How resources are developed, and where capital is allocated, will determine whether the continent becomes a leader in the global energy transition or misses the moment.



This is especially significant as new role players enter the fold. &nbsp;



Sovereign wealth funds and state-backed entities from regions such as the Middle East and China are increasingly shaping the competitive landscape. With vast pools of patient capital, these entities are securing key mineral assets across Africa, often ahead of conventional mining companies. China, for example, has invested heavily in Africa’s resource sector, leveraging its Belt and Road Initiative to establish partnerships in regions rich in critical minerals. Its dominance in rare earths, processing over 90% of the global supply, is a testament to its long-term approach. Similarly, Middle Eastern investors are using their financial muscle to gain strategic footholds. Saudi Arabia’s Public Investment Fund, through its joint venture Manara Minerals, is pursuing equity stakes in critical mineral assets worldwide, with billions of dollars earmarked for acquisitions.



As these new, non-traditional players disrupt established norms in the resource sector, the interplay between capital allocation and resource strategy becomes increasingly pivotal—an interplay exemplified by the shifting fortunes within the copper market.



As demand for the metal continues to grow, early movers that invested in greenfield exploration and development projects are now seeing significant returns on their investments. These projects, while requiring substantial upfront capital and long lead times, are yielding rewards that highlight the value of foresight and patience. In contrast, companies that delayed investment or focused on short-term shareholder returns are now facing steep premiums to secure producing assets, underscoring the cost of inaction in a resource-constrained environment.



The lessons from copper are broadly applicable across the mining sector: long-term strategic thinking is critical to building resilience and maintaining competitiveness.



While copper provides a compelling example, the broader question for the mining sector is how to anticipate and prepare for the next wave of critical minerals. Demand for materials like rare earths, cobalt, and hydrogen-related minerals is already rising, driven by advances in energy storage, electric vehicles, and decarbonisation technologies. The ability to identify and develop these future growth vectors will separate industry leaders from laggards.The role of partnerships will become even more critical in this context. Collaboration between mining companies, sovereign wealth funds, and downstream manufacturers will be essential to funding capital-intensive projects and securing supply chains. African governments and companies must also focus on building the infrastructure, workforce skills, and governance frameworks needed to support long-term growth.


<div class="wp-block-image">
<figure class="aligncenter size-large"><img loading="lazy" decoding="async" width="820" height="650" src="https://cms.cnbcafrica.com/wp-content/uploads/2025/02/Craig-Brewer-1-820x650.jpg" alt="" class="wp-image-581993" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2025/02/Craig-Brewer-1-820x650.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2025/02/Craig-Brewer-1-300x238.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2025/02/Craig-Brewer-1-114x90.jpg 114w, https://cms.cnbcafrica.com/wp-content/uploads/2025/02/Craig-Brewer-1-768x609.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2025/02/Craig-Brewer-1-1536x1218.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2025/02/Craig-Brewer-1-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">Craig Brewer, Managing Director: Co-Head Origination, Investment Banking at Absa CIB</figcaption></figure></div>


A Framework for Future-Proofing Africa’s Mining Sector



To better capitalise on emerging opportunities in the region, African mining companies must also adopt a future-proof approach to resource development. This means ensuring that capital allocation prioritises long-term resilience, sustainability, and shared prosperity. Governments and mining companies need to create environments that attract visionary investors, strengthen governance practices, and promote equitable benefit-sharing frameworks.



Sustainability must be central to these efforts. Investors are increasingly demanding adherence to environmental, social, and governance (ESG) principles, recognising their role in mitigating risks and ensuring project longevity. Mining projects that integrate ESG considerations are not only more likely to secure investment but also to build stronger relationships with local communities and stakeholders. Partnerships that focus on local beneficiation, for instance, can reduce reliance on external supply chains and ensure that African economies retain more of the value generated by their resources.



The energy transition offers an opportunity to redefine the mining sector, however, this requires bold, proactive decision-making. For companies, the challenge is to allocate capital efficiently, balancing the need for near-term returns with investments that secure long-term resilience. For governments, the priority is to create an enabling environment that attracts sustainable investment and ensures that the benefits of resource wealth are broadly shared.



The question is not whether capital allocation will shape the future of mining – it is how. Will it reward those with vision and patience, or will it continue to favour short-term strategies at the expense of long-term competitiveness? The companies and governments that rise to this challenge today will not only secure their place in the global energy transition but also set a benchmark for sustainability, innovation, and shared prosperity into the future.

Tinyiko Mahange 1

Capital Allocation in Mining: Future-Proofing Africa’s Resource Sector

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="547" src="https://cms.cnbcafrica.com/wp-content/uploads/2025/02/TEARGEYJVBNJZJNNXKQV4QH2KQ-820x547.jpg" alt="" class="wp-image-581989" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2025/02/TEARGEYJVBNJZJNNXKQV4QH2KQ-820x547.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2025/02/TEARGEYJVBNJZJNNXKQV4QH2KQ-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2025/02/TEARGEYJVBNJZJNNXKQV4QH2KQ-135x90.jpg 135w, https://cms.cnbcafrica.com/wp-content/uploads/2025/02/TEARGEYJVBNJZJNNXKQV4QH2KQ-768x512.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2025/02/TEARGEYJVBNJZJNNXKQV4QH2KQ-1536x1024.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2025/02/TEARGEYJVBNJZJNNXKQV4QH2KQ-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">FILE PHOTO: Former U.S. President Donald Trump speaks to an audience at the &#8220;American Freedom Tour&#8221; event in Memphis, Tennessee, U.S., June 18, 2022. REUTERS/Karen Pulfer Focht/File Photo</figcaption></figure>



JOHANNESBURG, Feb 3 (Reuters) &#8211; South African President Cyril Ramaphosa defended his land reform policy on Monday against an attack by Donald Trump that laid bare deep divisions within South Africa over racial disparities in ownership, an issue festering since apartheid.



The U.S. president said on Sunday, without citing evidence, that &#8220;South Africa is confiscating land&#8221; and &#8220;certain classes of people&#8221; were being treated &#8220;very badly&#8221;, adding that he would cut off funding to the country in response.



Ramaphosa said the government had not confiscated any land and he looked forward to engaging with Trump to foster a better understanding over a policy he said ensures equitable public access to land.



Trump&#8217;s attack was echoed by his South African-born billionaire backer Elon Musk, who said in a post on X the country had &#8220;openly racist ownership laws&#8221;, suggesting white people were the victims.



White landowners possess three quarters of South Africa&#8217;s freehold farmland, compared with 4% for Black landowners. Black people make up about 80% of South Africa&#8217;s total population, while about 8% are white.



Ramaphosa signed into law a bill last month aimed at addressing the disparity by making it easier for the state to expropriate land in the public interest.



His African National Congress, the biggest party in the ruling coalition, accused Trump of amplifying misinformation propagated by AfriForum, a right-wing lobby group that promotes what it sees as the interests of white Afrikaans speakers.



The ANC said Trump&#8217;s attack was &#8220;a direct result of the lobby group&#8217;s ongoing efforts to mislead the global community and protect apartheid-era land ownership&#8221;.



AfriForum CEO Kallie Kriel said his group would ask the U.S. government &#8220;to directly punish senior ANC leaders and not the people of South Africa&#8221; over land reform. A spokesperson confirmed the group had lobbied in the United States.



<h2 class="wp-block-heading" id="h-worries-over-trade-deal">WORRIES OVER TRADE DEAL</h2>



The mostly white-led Democratic Alliance, the second-biggest party in the coalition government, said it wanted the land reform law to be amended to address certain flaws, but nevertheless corrected Trump on the specifics.



&#8220;It is not true that the Act allows land to be seized by the state arbitrarily, and it does require fair compensation for legitimate expropriations,&#8221; the DA said.



The mining minister, Gwede Mantashe of the ANC, said African countries should &#8220;withhold minerals&#8221; from the United States in response to any aid cut. Ramaphosa&#8217;s spokesperson Vincent Magwenya told Reuters those words should be &#8220;taken in jest&#8221; and the government was not seriously advocating such a policy.



Washington committed $440 million in assistance to South Africa in 2023, of which $315 million was for HIV/AIDS. Ramaphosa said U.S. funding accounted for 17% of South Africa&#8217;s HIV/AIDS programme but was not significant in other areas.



Bilateral relations were already strained because of South Africa&#8217;s warm relations with China and Russia, and its legal action against Israel, a staunch U.S. ally, which Pretoria accuses of genocide.



South Africa&#8217;s rand, stocks and government bonds fell after Trump&#8217;s comments, and economists said any U.S. measures against it could hurt the economy at a time when the U.S./Africa AGOA trade deal is due for renewal and Ramaphosa has been struggling to boost growth and attract investors.



&#8220;Do you want to set up a factory in a country where today, Trump&#8217;s cutting off all aid? Maybe tomorrow, he&#8217;s ripping up AGOA and maybe on Wednesday, he&#8217;s adding 25% tariffs because they&#8217;re too close to China&#8221; said Charles Robertson, an emerging markets specialist at FIM Partners.



South African exports to the U.S. through AGOA represented 1% of GDP in 2023, of which about half was transportation equipment, according to research by economist David Omojomolo of Capital Economics. He said 56% of exports from South Africa&#8217;s automotive sector were AGOA-eligible.



Trade Minister Parks Tau said the government would engage with the U.S. administration and both parties represented in Congress on the continuation of AGOA, which expires this year.



&#8220;We are optimistic that we will remain part of AGOA,&#8221; he told Reuters on the sidelines of an African mining conference in Cape Town.



(Additional reporting by Tannur Anders and Sfundo Parakozov in Johannesburg, Thando Hlophe in Pretoria, Wendell Roelf and Nqobile Dludla in Cape Town and Libby George in London; Writing by Estelle Shirbon; Editing by Andrew Cawthorne)

FILE PHOTO: “American Freedom Tour” event in Memphis, TN

Trump attack on South Africa exposes divisions over race and land

<figure class="wp-block-image size-full"><img loading="lazy" decoding="async" width="5000" height="3333" src="https://cms.cnbcafrica.com/wp-content/uploads/2025/02/R565IRQJ2ZMVPBNPTB2P6AQWL4.avif" alt="" class="wp-image-581931"/><figcaption class="wp-element-caption">A view shows the Taipei Liaison Office in South Africa which is Taiwan&#8217;s representative office in South Africa&#8217;s administrative capital, Pretoria, South Africa, October 22, 2024. REUTERS/Alet Pretorius/File Photo</figcaption></figure>



TAIPEI, Feb 3 (Reuters)&nbsp;&#8211;&nbsp;The South African government has given Taiwan a deadline of the end of March to relocate the island&#8217;s de facto embassy outside of the capital city Pretoria, the Taiwanese Foreign Ministry said, blaming Chinese pressure for the move.



South Africa severed official diplomatic ties with Taiwan in 1997 and only maintains formal &#8211; and very close &#8211; relations with China, which views the democratically governed island as Chinese territory with no right to the trappings of a state.



In a statement late on Sunday, Taiwan&#8217;s Foreign Ministry said South Africa&#8217;s government had sent a letter in late January demanding the de facto Taiwanese embassy leave Pretoria before the end of March and &#8220;even be renamed as a trade office&#8221;.



The demand &#8220;shows China&#8217;s suppression against us in South Africa is becoming more serious&#8221;, it added, saying, however, that negotiations between Taiwan and South Africa were ongoing.



China&#8217;s foreign ministry said South Africa was a &#8220;good friend and partner&#8221; of China, and the country was doing exactly what it should when it comes to upholding the &#8220;one China principle&#8221; &#8211; which states Taiwan is part of China.



&#8220;Taiwan independence does not enjoy popular support, and will fail,&#8221; the ministry said in a statement to Reuters.



South Africa made a request last year for what is called the Taipei Liaison Office to leave Pretoria.



&#8220;Our department is coordinating with the Taipei liaison office regarding administrative matters related to accurately representing its diplomatic classification in South Africa,&#8221; a spokesperson for the South Africa&#8217;s foreign ministry told Reuters.



China is South Africa&#8217;s largest trading partner globally and one with which it is looking to expand cooperation in areas such as renewable energy.



Taiwan&#8217;s government rejects China&#8217;s sovereignty claims and says it has a right to forge ties with other countries.



Taiwan only has formal diplomatic ties with 12 countries, and in Africa it only has a single ally left, Eswatini, which is almost entirely surrounded by South Africa.



(Reporting by Ben Blanchard; Additional reporting by Ryan Woo in Beijing and Tannur Anders in Johannesburg; Editing by Sandra Maler and Toby Chopra)

R565IRQJ2ZMVPBNPTB2P6AQWL4

Taiwan says S.Africa gives March deadline to move office from Pretoria

<figure class="wp-block-image size-full"><img loading="lazy" decoding="async" width="5000" height="3334" src="https://cms.cnbcafrica.com/wp-content/uploads/2025/02/BQI34QFZORKWJOBUQ6WWLAU7QQ.avif" alt="" class="wp-image-581953"/><figcaption class="wp-element-caption">People walk past Ghana&#8217;s Ministry of Finance building in Accra, Ghana, December 13, 2024. REUTERS/Francis Kokoroko/File Photo</figcaption></figure>



ACCRA, Feb 3 (Reuters) &#8211; Ghana&#8217;s consumer inflation dipped slightly to 23.5% year-on-year in January from 23.8% in December, the statistics service said on Monday.



Government statistician Samuel Kobina Annim told a news conference that the latest&nbsp;decline&nbsp;was&nbsp;driven by a slowdown in non-food inflation.



&#8220;Although rate of inflation has slowed down by 0.3 percentage points, the figure of 23.5% is the second highest in the last nine months,&#8221; Annim said,&nbsp;adding that food prices continued to rise.



The west African country is emerging from its worst economic crisis in a generation, with turmoil in the vital cocoa and gold industries.



However, its inflation remains well above Bank of Ghana&#8217;s 8% target with a margin of error of 2 percentage points either side.



The central bank said last week that it would take longer for inflation to return within the 6%-10% range.



(Reporting by Maxwell Akalaare Adombila and Christian Akorlie; Writing by Anait Miridzhanian; Editing by Bate Felix)

BQI34QFZORKWJOBUQ6WWLAU7QQ

Ghana consumer inflation slows to 23.5% year-on-year in January

Diane von Fürstenberg on thriving and inspiring through adversity

<figure class="wp-block-image size-full"><img loading="lazy" decoding="async" width="728" height="487" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/12/rand2-1.jpg" alt="" class="wp-image-568119" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/12/rand2-1.jpg 728w, https://cms.cnbcafrica.com/wp-content/uploads/2024/12/rand2-1-300x201.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/12/rand2-1-135x90.jpg 135w" sizes="auto, (max-width: 728px) 100vw, 728px" /><figcaption class="wp-element-caption">South African bank notes featuring an image of former South African President Nelson Mandela are displayed at an office in Johannesburg, File. REUTERS/Siphiwe Sibeko</figcaption></figure>



JOHANNESBURG, Feb 3 (Reuters) &#8211; South Africa&#8217;s rand, stocks and government bonds slumped on Monday after U.S. President Donald Trump said he would suspend aid to the country.



Trump said, without citing evidence, that &#8220;South Africa is confiscating land&#8221; and &#8220;certain classes of people&#8221; were being treated &#8220;very badly&#8221; on Sunday, adding that he would cut off funding until the matter was investigated.



South African President Cyril Ramaphosa, who recently signed into law legislation allowing land to be expropriated under specific conditions, said his government had not confiscated any and he would talk to Trump to foster a better understanding.



At 1330 GMT, the rand traded at 18.8450 against the U.S. dollar, 0.7% weaker than its closing level on Friday. Earlier in the day it was down almost 2%.



On the Johannesburg Stock Exchange, the Top-40 index was 0.5% lower, while the benchmark 2030 government bond price slid and the cost of insuring South African debt against default rose to its highest since early August.



U.S. funding to South Africa mainly involves supporting its HIV/AIDS programme, but Trump&#8217;s comments caused investor unease about the potential for a broad review of diplomatic and economic ties.



Casey Sprake, an investment analyst at Anchor Capital, said the autos and agriculture sectors were especially vulnerable as South Africa currently enjoys duty-free access to the U.S. market under a Clinton-era trade initiative.



Annabel Bishop, an Investec economist, said the rand was also under pressure due to Trump&#8217;s tariffs on Canada, Mexico and China, which sent global currencies to multi-year lows.



South African manufacturers, meanwhile, posted a deterioration in business conditions for a third month in a row.



(Additional reporting by Sfundo Parakozov in Johannesburg and Libby George in London; Editing by Alexander Winning, Bernadette Baum, Barbara Lewis and Alexander Smith)

rand2 (1)

South African markets slump after Trump suspends US aid

<figure class="wp-block-image size-full"><img loading="lazy" decoding="async" width="1200" height="802" src="https://cms.cnbcafrica.com/wp-content/uploads/2025/02/PBSZKGKRDNKNFGBHZ3LDMDSHTQ.avif" alt="" class="wp-image-581857"/><figcaption class="wp-element-caption">People wearing face masks walk past a logo of South African pharmaceutical major Aspen Pharmacare, at its Johnson &amp; Johnson COVID-19 vaccine facility in Gqeberha, South Africa, October 25, 2021. REUTERS/Siphiwe Sibeko/File photo</figcaption></figure>



Africa&#8217;s pharmaceutical future is at a critical juncture with developments shedding light on the continent&#8217;s reliance on external aid for vaccine access.



The Trump administration&#8217;s initial freeze on foreign aid this week had sparked concerns about the fate of US-funded HIV/AIDS programs, which provide life-saving treatment. However, US Secretary of State Marco Rubio&#8217;s waiver partially lifting&nbsp;of&nbsp;the freeze offered a reprieve for these programs.



In a recent discussion with CNBC Africa, Stavros Nicolaou, Group Senior Executive at Aspen Pharmacare, accentuated the prominence of technology transfer for local manufacturing in Africa. &#8220;This calls for a refinement of the technology transfer model for Africa to make it fit for purpose for Africa and African purposes,’’ Nicolaou said.



Aspen Pharmacare, Africa&#8217;s largest pharmaceutical manufacturer, has been at the forefront of promoting local manufacturing and technology transfer. The company has made significant strides in producing generic antiretroviral (ARV) medications, which have saved hundreds of thousands of lives in South Africa and across the continent.



The Covid-19 pandemic served as a wake-up call for Africa to develop its own pharmaceutical manufacturing capabilities. According to Nicolaou, the continent has made some strides in this direction, with regulatory reforms and international procurement agencies now committing to purchase vaccines from African companies. However, Nicolaou cautioned that despite these gains, Africa is still relearning the lessons of the pandemic, highlighting the need for sustained progress and self-sufficiency in the pharmaceutical sector. &#8220;We&#8217;re at least better suited to deal with it. We&#8217;ve learned a multitude of lessons. Unfortunately, we&#8217;re learning them again,&#8221; he said.

PBSZKGKRDNKNFGBHZ3LDMDSHTQ

Can Africa Fill Its Own Prescription?

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="547" src="https://cms.cnbcafrica.com/wp-content/uploads/2025/02/GettyImages-2196996771-820x547.jpg" alt="" class="wp-image-581853" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2025/02/GettyImages-2196996771-820x547.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2025/02/GettyImages-2196996771-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2025/02/GettyImages-2196996771-135x90.jpg 135w, https://cms.cnbcafrica.com/wp-content/uploads/2025/02/GettyImages-2196996771-768x512.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2025/02/GettyImages-2196996771.jpg 1024w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">WASHINGTON, DC &#8211; JANUARY 31: U.S. President Donald Trump talks to reporters after signing an executive order, &#8220;Unleashing prosperity through deregulation,&#8221; in the Oval Office on January 31, 2025 in Washington, DC. (Photo by Chip Somodevilla/Getty Images)</figcaption></figure>



WASHINGTON, Feb 2 (Reuters) &#8211; U.S. President Donald Trump said on Sunday, without citing evidence, that &#8220;certain classes of people&#8221; in South Africa were being treated &#8220;very badly&#8221; and that he would cut off funding for the country until the matter is investigated.



&#8220;South Africa is confiscating land, and treating certain classes of people VERY BADLY,&#8221; Trump said in a Truth Social post.



&#8220;The United States won&#8217;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!&#8221; he said.



It is unclear what led to Trump&#8217;s post.



The South African embassy in Washington D.C. did not respond to a request for comment outside of regular business hours.



The United States obligated nearly $440 million in assistance to South Africa in 2023, the most recent U.S. government data showed.



South Africa currently holds the G20 presidency, after which the U.S. takes over.



Last month, South African President Cyril Ramaphosa&nbsp;<a href="https://www.reuters.com/world/south-africa-not-worried-about-relationship-with-us-under-trump-ramaphosa-says-2025-01-22/">said</a>&nbsp;he was not worried about the country&#8217;s relationship with Trump. He said he had spoken to Trump after the latter&#8217;s election victory and looked forward to working with his administration.



During his&nbsp;<a href="https://www.reuters.com/article/world/trump-and-land-fears-boost-south-africas-white-right-state-idUSKCN1NQ0GG/">first</a>&nbsp;administration, Trump said the U.S. would investigate unproven large-scale killings of white farmers in South Africa and violent takeovers of land. Pretoria at the time said Trump was misinformed. It is unclear whether the Trump administration carried out an investigation.



Trump&#8217;s close ally Elon Musk was born in South Africa. In 2023, Musk replied on X to a video of a far-left South African political party singing an old anti-apartheid song, &#8220;Kill the Boer&#8221;, by stating: &#8220;They are openly pushing for genocide of white people in South Africa.&#8221;

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DeepSeek: Will spending on chip infrastructure be impacted?

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