Land panel report risks triggering devastating consequences

Wheat field

The Institute of Race Relations (IRR) has warned that the recommendations of the Presidential Advisory Panel on Land Reform, released yesterday, risk triggering devastating consequences for investment and economic growth.

The Panel has recommended among other things that:

  • The government proceed to amend the Constitution to dilute property rights protections to explicitly allow for expropriation without compensation;
  • The government move towards expropriating various forms of property;
  • Foreign property ownership be restricted;
  • Farm sizes be capped and farmers forced to surrender the surplus; and
  • Taxes be imposed on land owners.

IRR CEO Frans Cronje said today in a statement that the proposals were “economically suicidal” and that the Panel report amounted to a ‘”30-page formula to destroy the economy”.

He added:  ‘The South African economy is in dire straits. Debt levels have doubled in a decade. The deficit is a multiple of the economic growth rate. Unemployment rates are a multiple of emerging market norms. Significant capital and skills flight is occurring. Last week, Moody’s downgraded its growth outlook for the country while Fitch downgraded its rating outlook to negative. To release a report that proposes the steps set out by the Land Panel is simply reckless. The report will do nothing to secure investor sentiment and I am afraid it has put a bullet through the ‘new dawn’s’ brain. The government will have to move very quickly to contain the fallout.”

Cronje stated that the the fallout will have implications for the whole economy as the principles inherent in EWC spread to sectors as diverse as healthcare and financial services.

‘The National Health Insurance proposal is essentially a step towards seizing the businesses of private doctors. Moves towards prescribed assets herald the same for pension fund beneficiaries. Few people anticipated that doctors and pensioners would lose their assets to the principles at the centre of EWC dogma ahead of farmers.

‘There is enough here to say that South Africa’s prospects for economic reform and increasing living standards are now stillborn and this will remain the case until EWC is taken off the table,’ Cronje said.

The IRR will study the report and comment in more detail in due course.



Latest


21 Sep 2020
Women are lagging in retirement savings and are debilitated by stress

In a recent study of their client base, Momentum Corporate revealed that almost half (41%) of the employees on the…

Women are lagging in retirement savings and are debilitated by stress

In a recent study of their client base, Momentum Corporate revealed that almost half (41%) of the employees on the FundsAtWork Umbrella Funds are women. With an almost 50/50 gender split across the client base, a one-size-fits-all approach to advice on employee benefits simply won’t cut it. This is according…

15 Sep 2020
Despite COVID-19, SA investors expect higher future returns

Even as COVID-19 halted the longest economic expansion on record and plunged the world into deep recession, South African investors…

Despite COVID-19, SA investors expect higher future returns

Even as COVID-19 halted the longest economic expansion on record and plunged the world into deep recession, South African investors expect to make an average annual total return of 12.67% – almost 2% higher than the global average predicted returns of 10.9%. This was revealed in the recently released Schroders’…

15 Sep 2020
Are cryptocurrencies here to stay?

The recent news that cryptocurrency giant, Digital Currency Group, has acquired cryptocurrency exchange company, Luno, has once again highlighted the…

Are cryptocurrencies here to stay?

The recent news that cryptocurrency giant, Digital Currency Group, has acquired cryptocurrency exchange company, Luno, has once again highlighted the rise of cryptocurrencies as a possible alternative to the current global financial system. According to Old Mutual Investment Group Director of Investments, Hywel George, Bitcoin, as well as a number…

10 Sep 2020
How too much choice is draining your brain

By: Paul Nixon, head of technical marketing and behavioural finance at Momentum Investments From the words of Francis Scott Key…

How too much choice is draining your brain

By: Paul Nixon, head of technical marketing and behavioural finance at Momentum Investments From the words of Francis Scott Key that dubbed America “The land of the free”, which stuck, to the unforgettable Mel Gibson monologue where an army of painted Scots were willing to trade their lives for the…


Top stories


10 Apr 2020
When the going gets tough, farmers are on familiar territory

South African farmers are old hands at adapting to uncertain and daunting circumstances, and our local agricultural industry has proved…

When the going gets tough, farmers are on familiar territory

South African farmers are old hands at adapting to uncertain and daunting circumstances, and our local agricultural industry has proved to be most enterprising in acclimatising to challenges as they arise.

13 Apr 2020
Investors should keep a reasonable investment allocation outside of SA

MoneyMarketing asked Roland Gräbe, the head of Tailored Fund Portfolios at Old Mutual Wealth, about offshore investments in the COVID-19…

Investors should keep a reasonable investment allocation outside of SA

MoneyMarketing asked Roland Gräbe, the head of Tailored Fund Portfolios at Old Mutual Wealth, about offshore investments in the COVID-19 environment and what form a global market recovery will take.

13 Apr 2020
SA’s Proposed Covid-19 Disaster Management Tax Relief

The National Treasury recently issued the draft Disaster Management Tax Relief Bill (Bill) for public comment by 15 April. The…

SA’s Proposed Covid-19 Disaster Management Tax Relief

The National Treasury recently issued the draft Disaster Management Tax Relief Bill (Bill) for public comment by 15 April. The draft Bill, together with its explanatory memorandum, provides clarity with regards the tax relief measures President Cyril Ramaphosa announced on 23 March.

11 Apr 2020
Finding investment opportunities among the many COVID-19 risks

With many countries around the world in lockdown as they try to contain the spread of the COVID-19 virus, the…

Finding investment opportunities among the many COVID-19 risks

With many countries around the world in lockdown as they try to contain the spread of the COVID-19 virus, the global economy is facing an unprecedented situation of balancing health against financial livelihoods.


Visit the official COVID-19 government website to stay informed: sacoronavirus.co.za