Tag: African National Congress (ANC)

It is a well-known fact that the ANC sees itself not primarily as a ruling party, but rather as a movement. This means that it needs to justify its continued existence in terms of the attainment of the objectives given at the organisation’s founding. The need to do this is what informs former President Thabo Mbeki’s critique of the Expropriation Without Compensation policy (EWC) through the 'leak' of his foundation’s memo.

Two important developments have recently taken place on the ongoing land reform discussion front.

ANC President Cyril Ramaphosa announced in a statement last night (31 July 2018) that amendments will be made to the constitution to enable the expropriation of land without compensation.

In February 2018, the African National Congress (ANC) government of South Africa joined with the radical left-leaning Economic Freedom Fighters (EFF) to approve a motion in parliament to request the Constitutional Review Committee to 'undertake a process of consultation to determine the modalities of the governing party resolution'.

When the democratically elected government took power in 1994, led by the ANC, three central elements of land policy were announced: land restitution, land redistribution and tenure reform. Land issues are being debated intensely and there are a number of interesting new developments: a new presidency of the ANC; a pending Restitution Amendment Act at present invalidated by the Constitutional Court; the High-Level Panel report to parliament; a new Communal Tenure Bill; and a land audit by AgriSA.

The South African Parliament agreed on 27 February 2018 to review section 25 of the Constitution with a view to amending the Constitution to allow for the expropriation of land without compensation as tabled by the Economic Freedom Front. This was met with surprise and consternation from banks, the agricultural industry and the international investor community.

During the State of Nation Address, the President of RSA Cyril Ramaphosa said the ANC plans to have a consultative public discussion to explore the merits of the ANC conference resolution on land expropriation without compensation. The ANC and South African government are certainly focused on the land reform project. In my view however, they are not thinking in the right direction.

Political uncertainty through transitions and instability are among the key risks for businesses in Southern Africa in 2018. 2018 will see continued uncertainty around political leadership in our Southern African markets. The transitions in Zimbabwe and Angola in 2017, elections in Mozambique in 2018, and factionalism within South Africa’s ruling African National Congress (ANC) once again remind businesses in the region of the importance of gaining a clear understanding of the impact of such uncertainty on their risk environment.

Tumisho Grater | Economic Strategist | Novare Actuaries and Consultants | tumisho@novare.com | www.novare.com | After months of political news flow dominating headlines, all eyes have be on the African National Congress (ANC) 2017 elective conference - and especially on the announcement of the new leader of the party. At this point in time, South Africa finds itself at a...

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