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Since the ANC decided in December last year to pursue a course of expropriation of land without compensation, South Africans have been on tenterhooks about what this could mean in practical terms. Although many believe that this is an important step for redressing past injustices, there are also concerns about the implications of depriving people of property rights, as well as the impact on food security.
The Constitution of South Africa has been interpreted as allowing for expropriation without compensation. Earlier this year, the National Assembly adopted a motion by the EFF to expropriate land without compensation. Following from this, a review committee was tasked with assessing whether there is in fact a need to change the Constitution. Hearings have been held at numerous locations around the country since late June, with the last one scheduled for this Saturday (04 August 2018).
The arguments for and against have been diverse and heated. The ‘willing-seller, willing-buyer’ model has been slow to deliver on land restitution, and most land still remains in the ownership of white people. Many people believe that transferring ownership of productive land to people who were displaced by apartheid will significantly reduce poverty in South Africa. On the other hand, there is fear that taking productive farms out of the management of experienced farmers will only worsen poverty through increasing food prices and destabilising the economy. Another argument is that state-owned land with productive potential should first be distributed before privately owned land is expropriated.
On Tuesday night (31 July 2018), President Cyril Ramaphosa announced that the ANC will propose amendments to the Constitution that ‘outlines more clearly the conditions under which expropriation of land without compensation can be effected’. He said, well ahead of the review committee’s conclusion, that South Africans are clearly asking for the Constitution to be explicit on the matter.
Although Ramaphosa has been careful, since winning leadership of the ANC nine months ago, to assure everyone that expropriation without compensation would not be done in a way that would affect the economy, the Tuesday night announcement has already shaken confidence in South Africa’s economy, with the Rand sliding a full one per cent in the immediate aftermath of the announcement.
Until the proposal is put forward publicly, there can only be speculation about what this means for land owners, whether productive farmers, investors, developers or speculators.
