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Cape Town - South Africa's cause is not helped in any way by the country having sent a delegation to Davos with a message that the country is open for investment and business, but then President Jacob Zuma follows it by saying in his State of the Nation address that foreigners cannot own land, according to AJ Jansen van Nieuwenhuizen, a tax expert at Grant Thornton Johannesburg.
“It was very surprising to hear that the president announced the conversion of freehold property rights of foreigners to leasehold. It begs the question whether this will unintentionally discourage direct foreign investment into South Africa. We urgently need foreign funds to grow our economy,” cautioned Andrew Hannington, CEO of Grant Thornton Johannesburg.
MUST READ: Sona wrap: Zuma drops bomb on land ownership
For Martin Jansen van Vuuren, director of advisory services at Grant Thornton, the president’s announcement that foreigners cannot own land immediately raises concerns about how this will impact on foreign land ownership of game farms as well as foreign investments in hotels in South Africa.
