17 January, 2018
Expropriation without compensation is an economic time bomb
SA takes note with dismay of the ANC's decision to amend
Section 25 of the Constitution to allow for expropriation
the relevant section stands now there are strict conditions
justifying expropriation. There is no rational basis for
this decision by the ANC. The High
Level Panel on the
Assessment of Key Legislation and the Acceleration of
Fundamental Change, led by Kgalema
recently found that the biggest challenge
standing in the way of land reform is not the property
rights clause, but the implementation of land reform
policies, procedures and extended entrenched corruption in
this section is amended to allow expropriation without
compensation, it would amount to no less than economic
suicide. Financial markets will undoubtedly divest in South
Africa and investor confidence will be shattered.
was the best performer across the first three quarters of
2017 and was the largest contributor to our 2% GDP growth in
the third quarter.
property rights for all South Africans will be the greatest
exercise of empowerment the country has ever seen. Dan
Kriek, Agri SA's president, says the organisation has
already developed a strategy that includes funding models
and agricultural realities that would enable successful
transformation in the agricultural sector.
have consistently been asking for security of tenure and
property rights for rural communities and emerging farmers
and it is time that the ANC sees this as an opportunity to
empower new entrants to the agricultural sector and unlock
funding mechanisms," says Kriek.
a strategic point of view the whole land reform programme
was unsuccessful and destroying current production is a poor
strategy. We challenge the ANC to explain to South Africans
how the proposed amendment of the Constitution would enhance
production or successful development of new farmers.
has the largest growth potential of any sector in the
economy and we should work together to explore and
capitalise on this opportunity. We would like to discuss the
ANC's decision with their newly elected president, Cyril
Ramaphosa, and top leadership.
want to expand investor confidence and investment in the
agricultural sector to reach our goal of creating jobs as
defined in the National Development Plan (NDP).
SA's existing strategies and recently released land audit
has already shown that market forces drive economies - and
it is the same for the agricultural economy in South Africa.
Kriek, President, Agri SA, 082 944 0566
Omri van Zyl, Executive Director, Agri SA, 012-643
3400 of 082 417 5724
Annelize Crosby, Head of Land Centre of Excellence