Trump Delivers New Blow To South Africa With Loan Cancellations

The United States has decided to cut funding for the Just Energy Transition Partnership, or JETP, an initiative in which several countries are providing billions of dollars in funding to help South Africa invest in alternatives to its highly polluting coal-fired power stations.

The cuts - which also affect similar programmes with Indonesia and Vietnam - will deprive South Africa of around 1bn in loans for its renewable energy programmes.

Trump suspended other aid programmes in the country shortly after taking office, alleging that the country's measures to allow expropriation of land without compensation in certain limited circumstances amounted to 'shocking disregard of its citizens' rights". He has also invited white South African farmers to resettle in the United States.

The reaction of South Africa to the JETP cuts has so far been muted. In a terse statement, the Department of International Relations and Cooperation stated that the government "notes the decision and remains committed to the implementation of international agreements, including decisions taken at the historic Paris Climate Change Conference."

Victor Perez, senior consultant at advisory firm Africa Practice, says that "US funds may be framed as irrelevant by government figures linked to the JETP management unit."