Decreasing investment protection
[Source: Moneyweb by Paul Vecchiatto of Bloomberg.]
South African President Cyril Ramaphosa said the government will press ahead with plans to distribute more land to the black majority in an orderly fashion, warning that a failure to do so would perpetuate an injustice that dates back to apartheid rule and constrain the economy. Read more
[Source: Associated Press by Elias Meseret.]
America’s top diplomat on Wednesday asserted that South Africa’s plan to allow expropriation of private property without compensation would be “disastrous” for the country’s economy and its people. Read more
[Source: Business Day By Cas Coovadia.]
The property market and economic growth generally will be severely affected by the expropriation of land, whether without compensation, below market value, or outside the law, the constitution and the courts. Read more
[Source: Politicsweb by Anthea Jeffery.]
Effective land reform is still required, but the Draft Constitution Eighteenth Amendment Bill of 2019 (the Draft Bill) will needlessly undermine the property rights of all South Africans: from the 1 million whites with home ownership to the 8.5 million black, ‘coloured’ and Indian families who own houses too. It will also hurt the 17.5m black people with customary plots, and the thousands of black South Africans who have bought more than 6 million hectares of urban and rural land since 1991. Read more
[Source: Business Day – Editorial.]
If the ANC continues to pander to its “radical economic transformation” (RET) faction, there will be nothing left of the economy to transform. Read more