No need to panic over land expropriation without compensation
Over the last few months, a sense of panic has gripped some South Africans over the government’s talk of land expropriation without compensation. But, what does the talk really imply and how can residential property owners anticipate being affected by any such policy?
Our readers and owners of property in Bedfordview and Edenvale may have been as alarmed as many other South Africans when the ANC government started making louder noises about the possibility of amending the constitution in order to facilitate land expropriation without compensation but, despite the fierce media debate, there does not appear to be much of substance behind the clamour.
Stuart Manning, CEO for the Seeff Property Group however, says that the question of land expropriation without compensation is a hot political topic. He points out that SA has a very robust and progressive Constitution, regarded as one of the best in the world and all laws have to be in line with the Constitution. Property rights are currently protected by Section 25, but there are many other safeguards and such a law is expected to be subjected to vigorous litigious tests. It would also be necessary to change the Land Restitution Act and there are currently no proposed or draft amendments to either this act, or the constitution.
The fact of the matter is that President Ramaphosa has been very clear that in the first place the government is only looking at agricultural land in terms of redistribution, and only insofar it does not negatively impact food production in the country. There are tracts of unused land in South Africa and these areas, by all accounts, are the primary focus. Handled correctly, this would mean increased black ownership and job opportunities without the turmoil seen in Zimbabwe.
Manning states that what is clear, is that the government is still a long way off from a workable solution and the need for economic growth will have to drive any land reform. It is therefore vital for property owners, buyers and investors to note that it remains business as usual for residential property ownership.
