Top reads on Fin24: Reaction to land reform plan, ANC to nationalise SARB and Steinhoff latest

Cape Town - ICYMI: A roundup of Thursday's must-read financial and economic news.

ANC reaches resolution on land reform

The ANC has resolved to amend the Constitution to achieve land expropriation without compensation.

This is according to Enoch Godongwana, chair of the ANC’s economic transformation committee, who was briefing the media on the outcomes of the economic commission, held on the final day of the party's 54^th National Conference.

The ANC on Wednesday resolved to begin work to amend section 25 of the Constitution which guarantees property rights, and change it to allow for expropriation of land without compensation. The only provision to this, the party said, is that it shouldn’t harm agricultural production, food security or other sectors of the economy.

• READ: ANC reaches resolution on land reform
  

AgriSA warned that should Section 25 of the Constitution be amended to allow for land expropriation without compensation, financial markets would divest and investor confidence in SA be shattered.

AgriSA questioned why the ANC resolved to amend the law to allow for land expropriation at its recently concluded national conference, citing the previous findings of the High Level Panel on the Assessment of Key Legislation and the Acceleration of Fundamental Change led by former President Kgalema Motlanthe.

“[It] recently found that the biggest challenge standing in the way of land reform is not the property rights clause, but the implementation of land reform policies, procedures and extended entrenched corruption in the system,” AgriSA President Dan Kriek said in a statement.

• READ: ANC's land plans economic suicide, warns Agri SA

MORE REACTION ON LAND EXPROPRIATION PLAN

• ANC land expropriation plan shows deep division in party - Silke
• Loud cheers as Ramaphosa says #ANC54 unanimous on land reform
• Business Unity SA urges urgent dialogue on land reform
• Radebe: Without land reform SA will never have peace

ANC sticks to policy decision to nationalise SARB

The ANC has resolved that the South African Reserve Bank (SARB) should be nationalised and the existing structure of private shareholders within the central bank should be done away with.

The Economic Transformation Committee briefed the media on Wednesday night about the policies it had adopted.

In June/July, the 5th ANC policy conference resolved that the SARB should be nationalised and the central bank should have greater interaction with the Minister of Finance.

• READ: Alarm over symbolic Reserve Bank proposal amid ANC's economic war
  

Reserve Bank Governor Lesetja Kganyago said at the time that the shareholders receive nominal returns and have no say over monetary policy.

Kganyago also cautioned that it will be costly for the state to buy out individual shareholders.

• READ: ANC sticks to policy decision to nationalise SARB

Steinhoff on brink of dropping off JSE's top 100 company list

Shares in embattled SA-headquartered global furniture retailer Steinhoff decreased to under R4 a share in morning trade on Thursday, about 91% down from what they were worth two weeks ago. 

The global retail conglomerate now risks dropping off the list of the top 100 biggest JSE companies by market capitalisation.

Steinhoff’s [JSE:SNH] share price opened on Thursday at R4.20 and fell to a low of R3.75, before recovering somewhat to trade at R4.00 at 11:25.

This puts Steinhoff’s market capitalisation at just R17.15bn. Once in the top 10 of the JSE by market cap, Steinhoff is now at around #85. 

According to Fin24 calculations, if its share price were to dip below R2.80 a share, it would likely exit the top 100 list, depending on the fluctuations of other companies.

• READ: Steinhoff on brink of dropping off JSE's top 100 company list

Eskom postpones interim results

Eskom has postponed its interim results announcement until early next year in order to study the effect its granted tariff hike will have on its finances. It said its newly-appointed board members will now review the financials.

Last week the National Energy Regulator of South Africa (Nersa) declined Eskom's request for a 19.9% hike, instead granting the utility a 5.23% hike. Nersa approved an allowable revenue of R190bn, resulting in an average percentage price increase of 5.23%.

While assessing the impact of the lower than anticipated tariff increase for the 2018/19 financial year, Eskom stated on Thursday and will not be able to release its interim results just yet.

READ: Eskom postpones interim results after tariff knock

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