From FSA’s executive desk

Each quarter FSA’s Executive Director, Michael Peter, circulates a number of short briefings via WhatsApp, updating members on important economic, political and social issues – both at home and abroad – that could impact the Sector.

EXPROPRIATION ACT – JAN 2025

As reported repeatedly over the last six years, the signing of the Expropriation Act by the President is not confirmation of, nor a mechanism for the State to implement a policy of expropriation without compensation of land or any other form of property, in spite of what Donald Trump and others may have to say on the matter.

The ANC’s policy of expropriation without compensation, failed in 2023, when Parliament failed to approve the amendment of Section 25 of the Constitution, which would have empowered the State to pursue EWC. It is worth noting that this was a Parliament in which the ANC enjoyed a majority and still they did not vote to support EWC.

This is hugely significant as we now have a coalition government for the first time in 77 years, which means that any further policy or legislative amendments in future, by any political party, will now be infinitely more difficult to push through, since no single party has dominance anymore in SA. This is the greatest testimony to the progress and maturity of politics in South Africa.

The Expropriation Act will instead in most cases, be used for purposes other than for land reform. This is because most (93%) land claimants over the last 30 years, chose financial compensation over land, meaning that most people who deserve to be compensated for their lost land, don’t want land as compensation but instead but would rather have financial compensation.

This makes it nearly impossible for the State to justify using the Expropriation Act for land reform objectives. Secondly, for the minority of people who do indeed want land as a livelihood strategy and as compensation for historical dispossession, the State already has thousands of farms which it can use to support land reform.

Using the Expropriation Act to try to drive further land reform, before the State has used the existing farms it already has on its books, is therefore highly unlikely and will be contested for these reasons.

Finally, should the State use the Act in any manner which is inconsistent with the Constitution, members can be assured that FSA (along with many otherbusiness formations like AgriSA, BUSA, BLSA and BASA) will contest such irregular use of the Expropriation Act and defend our members’ rights to the fullest extent necessary.

PRESERVATION AND DEVELOPMENT OF AGRICULTURAL LAND ACT – JAN 2025

We are delighted that the President signed the Preservation and Development of Agricultural Land Act into law.

As reported previously to members, FSA has worked closely with government and AgriSA over many years, to ensure that this Act includes the protection of Forestry land and Forestry processing plants. These are both explicitly provided for in the definitions of “Agricultural Purposes” and of “Agriculture” in the Act.

The Act, along with FSA’s Guidelines for dealing with Prospecting and Mining on Forestry land (available on our members-only webpage), offer the greatest protection for our sector against prospecting mining and other damaging land uses, that we have ever enjoyed in the country. FSA is updating the FSA Environment Guidelines and the Mining and Prospecting playbook for members to incorporate the additional protections which the PDALA now offers.

NEW DIESEL REBATE SYSTEM – MARCH 2025

Members will note the inclusion of the new diesel rebate system for Forestry, which FSA negotiated, and which will come into effect from April 2026. The tireless work of our Operations Director, Francois Oberholzer, with strong support from the National Logistics Crisis Committee, in which we have major representation, should be acknowledged for this achievement. The last gain we are still seeking beyond the empty mill return trips and wattle bark transport (which are both now included in the new rebate system) is for labour transport and we have had encouraging feedback from SARS that this is being looked at too.

The Sector consultation is set to start in May of this year where we will again push for the inclusion of labour transport diesel costs.

Source: FSA – Foresrty in Focus (Page 4-5)

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