'Constitutional amendment on land reform will be a welcome move for investors'
CAPE TOWN - The African National Congress (ANC) insists that Parliament’s adoption of a report giving the green light for land expropriation without compensation will create more stability for investors.
The issue of expropriation without compensation has long been a point of unease for the markets and for international investors.
On Thursday, Parliament’s constitutional review committee recommended the Constitution be changed to allow for it.
But the ANC’s head of Presidency Zizi Kodwa says far from being a negative for investors, this will give them certainty on policy.
Kodwa says a constitutional amendment to allow for land expropriation without compensation will be a welcome move for investors, simply because it gives a clear and unequivocal direction on policy.
He’s moved to allay fears of any Zimbabwe-style land grabs following a constitutional amendment.
“In terms of the structure of the economy, it’s not sustainable if it doesn’t create certainty for investors. In fact, it’s source for instability for the future,” Kodwa said.
Kodwa says moves to amend the Constitution won’t be rushed in order to avoid any legal challenges by opposition parties and those opposed to the move.
“What’s important is that there should be a rush. At the end of the day, already, there are implications that there are other parties that may go to Parliament. They are ready to go to court to challenge the very same resolution.”
Kodwa’s comments come as President Cyril Ramaphosa embarks on a working visit to the European Union to engage with potential investors in his drive to kick-start the ailing South African economy.
(Edited by Zamangwane Shange)