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New land reform 'scares investors'

Johannesburg - "Ideological interference" with the local agricultural land market can easily scare off investors, farmers' organisation AgriSA said on Wednesday.

Rural Development Minister Gugile Nkwinti's expected green paper on land reform may have negative long-term implications for the country's agricultural sector, AgriSA president Johannes Möller said in a statement.

A strategy document from Nkwinti's department had spread concerns about the government's dedication to the Constitution's statements on property rights.

"The altering of article 25 of the Constitution that would have made the nationalisation of land possible was mentioned," said Möller.

"Minister Nkwinti moved away from this option [in his department's budget vote speech in Parliament on Wednesday] but he still made it clear that the state will place limits on private land ownership."

Nkwinti said the paper would propose the current land tenure system be overhauled. A three-tier system would be proposed - state land under leasehold, private land under freehold with limited extent, and foreign ownership with precarious tenure linked to productivity and partnerships with South Africans.

This system would be based on a "categorisation model" informed by land use needs at the levels of household, smallholder and commercial farming.

Möller said the minister made it clear the government's approach to land reform would change dramatically.

"Uncertainties will only be removed when the green paper on land use will be made available for public comment," he said.

"Apparently there is a perception that there is surplus agricultural land in the ownership of commercial farmers and other individuals' hands that can be used for redistribution and black economic empowerment," said Möller.

He intended to consult with the government on the issue. He said private ownership of land was an important departure point for economic growth.

- Sapa

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