Concern over decision for land expropriation without compensation

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The Agricultural Business Chamber (Agbiz) has noted with disappointment and deep concern of this resolution adopted by the ANC Elective Conference, albeit subject to certain caveats and conditions regarding sustainability,” Dr John Purchase, CEO of Agbiz, reacted “The negative impact on commercial farmers, the finance and agribusiness sectors, food security and the economy of the country as a whole would potentially be catastrophic, while the resolution will undermine property rights, investment into the broader sector and the proper functioning of the land market.”

“As the relevant section stands now there are strict conditions justifying expropriation. There is no rational basis for this decision by the ANC,” Agri SA reacted in a press statement. The high-level panel on the Assessment of Key Legislation and the Acceleration of Fundamental Change, led by Kgalema Motlanthe, 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 the system.

"No less than economic suicide"

“If 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.” Securing 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.

“We 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.

From 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.

Far better ways

In its statement, Agbiz reiterates its belief that there are far better ways of achieving accelerated land reform with less risk to investors, or to loss of business confidence in the sector, and that these proposed models should be meaningfully tested and implemented.

“With regard to today’s resolution and certain clarification comments on the matter at the ANC Conference, Agbiz will await the details of the proposed plan and consider the outcomes of future engagements with the ANC and other stakeholders. Agbiz welcomes the call to further engagement on this highly contentious issue and on the sustainability test that will need to be investigated and thoroughly researched to ensure evidence-based policy formulation. This approach would be in line with that adopted in the recently released Report on Key Legislation by the high-level panel, chaired by Motlanthe. Agbiz also welcomes the call that no illegal occupation of land will be tolerated,” Purchase concluded.