Land bill shuts out foreign owners

The Regulation of Agricultural Land Holdings Bill will have farreaching consequences for owners of agricultural land and, in particular, foreign nationals, law firm Cliffe Dekker Hofmeyr has said.

The bill was recently released for public comment, amid raging debate on land reform and expropriation without compensation.

William Midgley, a director in corporate and commercial practice at Cliffe Dekker Hofmeyr, said the bill made provision for the establishment of a land commission to be appointed by the rural development and land reform minister. The commission will establish a register of public and private agricultural land ownership.

“Every owner of a private agricultural land holding must lodge a notification of ownership with the commission in the prescribed form within 12 months of the commencement of the act, if enacted in its present form. The notification is to include the race, gender and nationality of the owner, and the size and use of the agricultural holding,” said Midgley.

Those who acquire ownership of private agricultural land after the commencement of the law must lodge a notification with the commission within 90 days of the acquisition. A Registrar of Deeds may not register the transfer unless the notification has been lodged with the commission, said Midgley.

“A ‘foreign person’ will not be entitled to acquire ownership of agricultural land from the commencement…. Foreign persons may only conclude long leases of agricultural land (30 to 50 years).”

“A foreign person wishing to dispose of an agricultural land holding must offer it to the minister, who will have a right of first refusal to acquire ownership of such land.”

Midgley said certain public statements indicated that an ownership cap of 12,000 hectares may be imposed on foreign persons.

Rural Development and Land Reform Minister Gugile Nkwinti said recently that the bill aimed to reverse the legacy of colonialism and apartheid, and to ensure a “just and equitable” distribution of agricultural land to Africans.

“Currently, whenever the state expresses a … need to facilitate access to agricultural land in terms of ... our Constitution, it is often reminded that it has a large property portfolio that it should start with. The true extent of this portfolio and its development potential remains debatable. Land audits by the department have not been able to reveal who owns and uses the agricultural land of SA. There is therefore a need for an accurate record of all public agricultural land,” said Nkwinti.

He said land owned by foreign nationals would not be arbitrarily taken away. The bill states: “No foreign person shall, from the date of the commencement of this act, acquire ownership of agricultural land.”