Foreign land ban won't hit investment - ministers | Fin24
 
  • New Notes

    Long queues have formed in Harare after Zimbabwe released new bank notes and coins.

  • Open Book

    Former President Jacob Zuma says the public protector can access his tax records.

  • SAA Strike Proposal

    The flag carrier's acting CFO says a strike could destroy the struggling airline and all its jobs.

Loading...

Foreign land ban won't hit investment - ministers

Feb 15 2015 16:22

Cape Town - Cabinet is still to decide whether the announced ban on foreign land ownership will apply to all categories of land, Tourism Minister Derek Hanekom said on Sunday.

"In many countries they make a distinction between agricultural and urban land," the former land minister told reporters in Cape Town.

"So these are some of the details that are still being fleshed out by cabinet, it is to say what exactly is going to be put in place to give effect to this decision."

Hanekom added that the impending ban, widely expected and confirmed by President Jacob Zuma in his State of the Nation address on Thursday, would not affect the rights of current foreign land owners and should not be seen as a threat to foreign investment.

READ: Zuma lost GPS signal on land ownership - business

"It is not unusual. In fact many, many countries in the world do not allow foreign ownership of land, including developed countries," Hanekom told the briefing by cabinet’s international co-operation, trade and security cluster.

He said existing title deeds were, in terms of existing policy, not under threat and existing land owners would not have to convert their title deeds to leaseholds.

"That is not on the table at the moment. The decision is not a threatening decision... and a 99-year lease is certainly not a disincentive to investment in South Africa."

Asked about a negative comment on the proposed ban from the head of the German Chamber of Commerce in South Africa, carried in Rapport on Sunday, Trade and Industry Minister Rob Davies said he believed it would not affect investment by German companies.

"I guess there are foreigners from Germany who are looking to come and buy land in South Africa. They will be disappointed because I think there is a decision we have had to take which is in the interest that many more of our people, who were at a disadvantage under apartheid, have access to land.

"I am not aware that there is a big quantum of foreign investment in land coming in from Germany. I am aware that German industries are increasing their investment in South Africa and one example that I recite is that in 2014 a German company, Mercedes-Benz, made the largest investment in the motor sector in South Africa ever."

READ: Confusion over ban on foreign land ownership

City Press reported earlier this month that one of the largest corporate holders of title deeds is German car maker Daimler, which has numerous subsidiaries in the country, among them Mercedes-Benz SA.

A spokesperson for Mercedes-Benz SA said all South African property owned by Daimler’s subsidiaries were owned by locally registered companies.

ALSO READ: Presidency explains foreign land ownership plans

NEXT ON FIN24X

 
 
 

Read Fin24’s Comments Policy

24.com publishes all comments posted on articles provided that they adhere to our Comments Policy. Should you wish to report a comment for editorial review, please do so by clicking the 'Report Comment' button to the right of each comment.

Comment on this story
83 comments
Comments have been closed for this article.
 

Company Snapshot

Money Clinic

Money Clinic
Do you have a question about your finances? We'll get an expert opinion.
Click here...

Voting Booth

What do you think about private healthcare in SA?

Previous results · Suggest a vote

Loading...