Land ownership bill raises fears

Agri bodies say it will scare off investors

IF GOVERNMENT has its way, foreign nationals will be prohibited from buying farms in South Africa, a move Eastern Cape agricultural organisations believe will work directly against efforts to bring capital from abroad into the country.

Agri Eastern Cape, along with the Red Meat Producers Organisation (RPO), the Sundays River Citrus Company (SRCC) and the National Wool Growers Association (NWGA), say government is contradicting itself – encouraging foreign investment on one hand, but then scaring investors off by prohibiting land ownership.

But the African Farmers’ Association of South Africa (Afasa) feels differently, saying it fully supports government’s bid to prevent foreign ownership of agricultural land.

Afasa EC president Joe Mnyengo said land should be given to emerging farmers and foreign investors should partner with local farmers.

Last month the Department of Rural Development and Land Reform published a draft of the Regulation of Agricultural Land Holdings Bill of 2017 in the Government Gazette for public comment.

While the bill makes provision for a number of regulations regarding land ownership in South Africa, one point drew the most attention from agricultural organisations.

“To provide for the prohibition on the acquisition of agricultural land by a foreign person,” the bill reads.

The period for public comment expired earlier last month and government is still processing all the reactions it had received.

Agri EC president Doug Stern said they would fight the bill at every turn, and it could take years before a law like this could come even close to being adopted.

“This is nothing more than a political tool – trying to gain votes in rural areas by using the very emotive issue of land reform and ownership,” Stern said.

He said a law like this would go directly against the Constitution and restrict a person’s right to own assets.

“And what is most baffling about this bill is the glaring contradiction – government invites foreign investment, then prevents foreign nationals from owning land. We are scaring off the foreign investors we have been fighting to attract,” Stern said.

SRCC managing director Hannes de Waal said the bill might not have a direct impact on their business as the majority of their roleplayers were local farm owners, but it could damage the fruit industry as a whole.

“The fruit industry across the country has a lot of foreign investment and partnerships. Our fruit is exported across the world and I fear passing a law like this could damage business relationships cultivated over many years.”

Mnyengo, on the other hand, said foreign investors should pump their money into ventures run by South African landowners.

“As Afasa we are completely against foreign land ownership. Just because foreigners have more money it does not give them the right to own land in South Africa. We support this bill.

“Foreigners do not need to own land to become part of local business ventures. They can still invest in the development of our local agriculture and economy,” Mnyengo said. —