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
These are very
emotive issues and driven by political considerations
rather than common sense. Points to be made include:
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
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.
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.
SONA, the ANC supported an EFF motion regarding
expropriation without compensation. This again was a
populist political decision.
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
House of Traditional Leaders.
highlighted certain sections which I believe of particular
importance to note and to some extent should allay some of
It is also
important to note that:
the Parliament's Constitutional Review
Committee will allow for public comment and input before
it reports back to the National Assembly by August 31;
the land reform matter "would be
resolved with comprehensive consultation"; and
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