Zuma lost GPS signal on land ownership - business
Fin24

Zuma lost GPS signal on land ownership - business

2015-02-13 12:57

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.

Afribusiness, a network of South African business leaders, said it will actively oppose any attempt to limit land ownership.

This is in reaction to the announcement by President Jacob Zuma in his State of the Nation address on Thursday evening that land ownership will be limited to South African citizens and that foreigners will not be able to own land in the country any more.

READ: Foreigners won't be allowed to own SA land

According to Cornelius Jansen van Rensburg, CEO of Afribusiness, the organisation will campaign via legal actions, the mobilisation of the local and international business sector and by encouraging financial and other pressure on government.

"Economically speaking, the Zuma government has lost its GPS signal. Breaking down property rights is sending the country in the wrong economic direction and reduces investor confidence in general," said Afribusiness.

"All government's other plans, policy suggestions and good intentions are actually being declared null and void against the backdrop of property rights being actively undermined. If citizens cannot enjoy complete property rights to their assets and income, no economic development will succeed."

For Afribusiness Zuma's announcement on the limitation of property rights was the real low point of Zuma's speech.

The Nelson Mandela Bay Business Chamber in Port Elizabeth also expressed its concern regarding the implementation of new foreign land ownership laws alluded to in the State of the Nation address.

"We raise a question regarding how this will be implemented against existing foreign ownership, and how this will impact future foreign investment," said the chamber.

"We also request further insight into the possible impact the maximum land ownership law will have on commercial farming. This is a concern for the agricultural economy, and we believe that the possible detrimental effects on foreign direct investment should be carefully considered."

READ: Zuma: Govt knows how to handle power challenge

Farming challenges

Christo van der Rheede, CEO of the AHi business chamber also said "contradictory statements" by Zuma about foreigners and land ownership and that state entities are going to play increasingly larger roles in the economy "discourages foreign investment on the one hand and promotes monopolising on the part of the state on the other hand".

"Existing farmers are ideally positioned to expand the value chain for agricultural products, but they are confronted by contradictory statements about land policies, unsafe circumstances, crime and increasing input costs which discourages them even more," said Van der Rheede.

"Farms transferred to people without knowledge of farming deteriorate, stop producing and do not create jobs."

Contradicting statements by die president could lead to the outflow of capital instead of an inflow.

Carl Opperman, CEO of Agri Western Cape said local and international investor confidence will not be assured by the statements in the State of the Nation address.

"Agriculture is used as a social tool, while it is a source of job creation and stability in rural areas and contributes to the gross domestic product (GDP)," said Opperman.

"The uncertainty for farmers regarding land is not only an agricultural problem. People are leaving rural areas because of a lack of employment and this is a catastrophe which puts pressure on cities and Treasury."

READ: ANC calls for faster land reform

He said organised agriculture is dedicated to land reform, but on the basis that the land and its people must have a future and not face hunger.

The Chamber of Mines said it noted the statement on agricultural land use and will continue its engagement with the departments of agriculture and environmental affairs on various strategies to ensure that mining co-exists with food security initiatives.

MUST READ: Pay back the money not strictly about Nkandla


Comments
  • WollieVerstege - 2015-02-13 13:13

    Well I have been working hard with some investors from India over the past 4 months to try and get a project of the ground here in SA. This morning when I got to the office there was an email stating that the proposed project is on hold due to fiscal and political uncertainty. They would now only reconsider the project after the 2016 local elections. 50 million and 450 potential direct jobs - GONE

      BarakYeshua ForPeace - 2015-02-13 13:34

      I had a German Investment consortium looking to spend 360 million Euros in South Africa on commercial property like office blocks and shopping centers and redevelopment opportunities. The Rand sank 10% before they could even get their money transferred in South Africa, they cancelled their investment plans because they say they can't lose 10% of their investment capital thru currency depreciation before they even lay the foundations for a single brick. 360 million Euros for SA - GONE

      Monika Evans - 2015-02-13 13:56

      And so it will go on. Viva Anc Viva - bunch of ignorant uneducated morons.

  • Ian Trenor - 2015-02-13 13:13

    Bye bye foreign investment.....zim no 2

  • willem.proost - 2015-02-13 13:22

    He did not make either of these statements MAC were are you when I need you

  • Starletha King - 2015-02-13 13:24

    I can't wait to finally move to Clifton. I'm packing already.

      Christien Scheepers - 2015-02-13 13:55

      So that you can turn it into a dump?

      Ian Trenor - 2015-02-13 14:03

      That's like rearranging deck chairs on the titanic.

      Jaapie Bopape - 2015-02-13 14:23

      You may be disappointed there sweet cheeks, there isn't a KFC for miles

      Raymond Harris - 2015-02-13 15:35

      i think she's being sarcastic

  • Chantelle Crocker Monaghan - 2015-02-13 13:29

    lol, property prices there are going to finally be affordable lol

      Christien Scheepers - 2015-02-13 14:00

      It will be given away for free and then people will use it as a rubbish dump and toilet.....then worhtless!

  • Chantelle Crocker Monaghan - 2015-02-13 13:29

    Victor, Zuma and many of his comrades do own land overseas.

      Victor Menzi Zongo - 2015-02-13 13:33

      This was the anc resolution not zuma idea this decision was taken by the anc not by jacob zuma so y always attacking the man but not the anc branches

      Theo Marx - 2015-02-13 14:06

      Victor, you're right. He's not the only idiot, he's only the leading idiot.

      Jaapie Bopape - 2015-02-13 14:15

      Zuma is the prince of idiots voted in by the idiots

      Shaun Cousins - 2015-02-14 10:04

      the anc do whatever zuma tells them to do they just puppets with zuma pulling the strings.

  • George Oosthuizen - 2015-02-13 13:34

    Because Zuma is a retard. Including his cadres.

  • Roger Pacey - 2015-02-13 13:39

    Australia regulates (not bans) ownership of agricultural land worth more than A$15 million by foreigners. The government's aim is to balance food security with foreign investment. The aim of the ANC's policy is unclear

      Jaapie Bopape - 2015-02-13 14:25

      The African National Catastrophe can't think out anything clearly except for maladministration, corruption and KFC for lunch!

  • Nico Louw - 2015-02-13 13:40

    Cyndi , it seems to me the you do indeed have a huge problem.! It's the economy and western investments that are keeping this country on its feet . It's one thing to be stupid a complete fool will shout it from a podium.

  • Louis Schoeman - 2015-02-13 13:41

    You know our politicians are so unimaginative, I mean they even have to take tips from old bob in zim to bugger up a country properly :/

  • RDynasty LaFamilia - 2015-02-13 13:53

    It's not like ordinary citizen will benefit if foreigners are not allowed to own land mos....

      Theo Marx - 2015-02-13 14:08

      Jip, only the self proclaimed Zulu king and his minions.

  • Willem Louw - 2015-02-13 13:56

    what happens to the foreigners who allready own land in SA??? will that land be expropriated? this is how it all starts: you impliment a law stating that only South Africans may own land in South Africa and then you classify whites as colonialists and settlers... and bam. It's not such a big step.

  • Simbarashe Nematadzira - 2015-02-13 14:05

    Go Africa Go.That was a long time coming.thts independence

      Jensen Kennedy - 2015-02-13 14:23

      I agree that independence can be quite beneficial, however, we are in no way even near being able to be independent. For that we need a stronger leader that puts the country first and not himself.

  • Simbarashe Nematadzira - 2015-02-13 14:07

    Victor Menzi.you got it ryt bro

  • Ian Trenor - 2015-02-13 14:08

    N 24 "moderator" love your thumbs down speed button lol

      Ian Trenor - 2015-02-13 14:09

      Sho that was quick! Lmao

      Ian Trenor - 2015-02-13 14:10

      Again please!

      Hennie De Ruyter - 2015-02-13 14:42

      My comment only scored 49 down thumbs. My teenage daughter is right. I am a boring old man! In my young days I could go for 94. Then again 94 is not a good number to discuss today.

  • Hennie De Ruyter - 2015-02-13 14:08

    So who will build a factory on land they are not allowed to own? Oops, sorry I forgot, we don't need job creation. Ego is more important.

  • Reagan Titus - 2015-02-13 14:10

    Always contradicting himself eish this guy but went to beg for money just a week ago

  • Bernd Kankowski - 2015-02-13 14:34

    What do you expect? The left hand doesn't know what the right hand is doing because there is no connection or data transfer possible from a grade 7 individuals intellectual hard drive to the rest of the organisation.

  • Eugene Engelbrecht - 2015-02-13 14:48

    Unfortunately when anyone white critises orpoints out consequences of actions not thought through, we are emmefiatly discounted as racist and resisting democracy, I embrace democracy and have paid my price through incarceration in the 80's, but we fid not do that for nothing. ANC, we fought apartheid, we will resist you too!

  • mitchumbrooks94 - 2015-02-13 14:53

    There's not a chance this will survive constitutional scrutiny!

  • Malusi Ntombela - 2015-02-13 14:55

    Only other foreigners will have problems with land issue, I'm not surprise by their comments as I have an understanding that land issue reminds them who they are in this country. All indigenous people understand that allowing all foreigners to own land will exacerbate the problem of land.

      Raymond Harris - 2015-02-13 16:06

      How?

  • Richard Westviews - 2015-02-13 15:22

    kkkk . wrath

  • Mirko Zan910 - 2015-02-13 16:08

    ANC you just plain incompetent African National Crap----period! To hell with this circus!

  • Barry Smit - 2015-02-13 18:12

    Forken clueless...

  • Richard Nieckau - 2015-02-13 19:14

    The ANC is decrypting their underlying intention, to rid the land if the 'Colonists and settlers' Yes Zuma, you can use your machine gun to shoot the Boer, but when you finally get organised, you will not have enough time to execute your devious plan as the white man is 100 years ahead of you. Primal behaviour is laughable.

  • Lang Hendrik - 2015-02-13 20:37

    The ANC is like a black hole for wealth. I think given the opportunity they would try to steal the whole worlds wealth.....because they are entitled to do so.

  • James Peck - 2015-02-13 21:48

    20 years to announce the intention another 40 to actually do it

  • Riaan van Zuydam - 2015-02-13 22:53

    That's what you get when the people who are the economy have no say in legislation but are dictated to by the people who don't contribute a cent. I say only tax payers get to vote in the next election. If you are a grant recipient you don't vote. If you are a jail bird you don't vote.

      Cameron Last - 2015-02-14 01:35

      Agree completely.

  • Tondani Abraham Mphigalale - 2015-02-14 00:41

    I like this legislation, at last its raised n make constitutional... China is top country by economy but always any foreigner has to know that land its owned by the citizen n government... Now that a black government madeit lawful every white bird is analysing negatively abt it...wats the use of international investors whom they do wat they do wthout any monthly fee...use your head n think how much we would gain as a country if Angloamerican ws leasing the land? N only white guys are the once against this law nxah

  • Daniel Wagener - 2015-02-14 13:40

    Use your head and learn how to spell.

  • William Steven Pearson - 2015-02-15 17:29

    Well I'm no economic genius, but it does in a way make sense. Look @ the rest of the worlds land policies, same principle. Just don't take already owned land away and stop this 50 50 nonsense, you not Mandoza.

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