South Africa to amend constitution to allow land expropriation

  • South Africa to amend constitution to allow land expropriation

South Africa to amend constitution to allow land expropriation

The ANC "reaffirmed its position that a comprehensive land reform program that enables equitable access to land will unlock economic growth, by bringing more land in South Africa to full use, and enable the productive participation of millions more South Africans in the economy", Ramaphosa said.

The decision by the ANC, at its national executive committee lekgotla earlier this week, to officially call for the amendment of the Constitution to allow for the expropriation of land without compensation has sparked a renewed and heated debate.

Investors said Ramaphosa's speech was aimed at winning political points ahead of an election in mid-2019.

Last year, South Africa's then-president Jacob Zuma publically endorsed the idea of seizing land, previously floated by the leftist Economic Freedom Fighters (EFF) party.

Ramaphosa's announcement comes as Parliament's Joint Constitutional Review Committee's public hearings reach finality.

"It has become pertinently clear that our people want the Constitution to be more explicit about expropriation of land without compensation as demonstrated in the public hearings", Ramaphosa said on Tuesday in a recorded address to the nation.

The 2044 bond chalked up the steepest losses, falling almost 1.4 cents to its lowest level in almost four weeks, according to Tradeweb data.

Data showed on Tuesday that unemployment rate rose to 27.2 per cent of the labour force in the second quarter from 26.7 per cent in the first quarter.

The ANC does not have enough lawmakers in the parliament to amend the constitution on its own, but the support from EFF would allow it to pass the two-thirds threshold.

"The ANC will go through the parliamentary process to finalise the proposed amendment to the Constitution that outlines more clearly the conditions under which expropriation of land without compensation can be effected".

This is according to Wichard Cilliers, director and head of dealing at TreasuryONE, who said that while the the market was shaping up for a break below the R13.00 handle, the announcement by president Cyril Ramaphosa dealt the rand a blow, and in all likelihood the news will not be well received.

"We have been watching all the public hearings and there is an overwhelming view to expropriate land without compensation".