Forestry in South Africa
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March : Article regarding ANC’S new land reform policy as hightighted in SONA

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9 March, 2018

Article regarding ANC'S new land reform policy as hightighted in SONA & recent adoption of motion I.R.O. expropriation without compensation


FSA is obviously extremely concerned about the latest developments regarding the above, especially the adoption of the motion in Parliament to amend the Constitution to allow for expropriation without compensation.

These are very emotive issues and driven by political considerations rather than common sense.  Points to be made include:

  • The ANC's land reform policy has been a shambles, lacking post settlement support and plagued by corruption.  Result - the vast majority of transferred land is lying fallow.
  • If the ANC was serious about land reform it would have allocated it a far bigger slice of the national budget than it did in the past and still does.  In recent years the budget has actually been declining.
  • Agri SA undertook a land audit and found that the ownership of land by black people was far higher than the figures often trotted out by Government.
  • Since SONA, the ANC supported an EFF motion regarding expropriation without compensation. This again was a populist political decision.
  • Property rights are the foundation of any successful economy. Expropriation without compensation is going down a dangerous road which will have massive unintended consequences - probable significant decrease in production, reduced investment inflows from foreign investors into South Africa and a potential collapse of the banking sector (who are heavily exposed in terms of faming debt) to name but a few.

I have attached an article that appeared in News24 on 1 March which reported on comments made by President Ramaphosa on land reform matters to the National House of Traditional Leaders.  I have highlighted certain sections which I believe of particular importance to note and to some extent should allay some of our fears. 

It is also important to note that:

  1. the Parliament's Constitutional Review Committee will allow for public comment and input before it reports back to the National Assembly by August 31;
  2. the land reform matter "would be resolved with comprehensive consultation"; and
  3. the President would "soon be initiating a dialogue with key stakeholders" (which I assume would include Organised Agriculture).

FSA will be working closely with Agri SA on this issue and as such will be making the required inputs into the opportunities presented to us for interactions with Government.

Read article here

Source: FSA