As political pressure for land expropriation without compensation intensifies during the public hearings around this issue, special investment envoys and business have warned that this has made foreign and local investment in South Africa a “tough sell”. Recently, former Finance Minister Trevor Manuel – one of four investment envoys appointed by President Cyril Ramaphosa to market SA to investors – said selling South Africa as an attractive investment destination had been “tougher than expected” largely due to concerns around property rights amid the land expropriation without compensation issue. Speaking at a Brics Council meeting ahead of last week’s summit in Sandton, Liberty chairperson and Manuel’s fellow economic envoy, Jacko Maree, added his concerns around this issue too. “The President has assured us that the land issue will be resolved in a win-win manner, but it’s not helping in the short term,” he said, pointing out that foreign investors were raising serious questions about the country’s economic policy direction which somehow made them sceptical and diminished their appetite to invest in the country. A recent survey by the Citrus Growers’ Association revealed that over 20% of citrus producers said they would reduce investment if expropriation without compensation was passed in Parliament. A further 27% responded that they would divest themselves of their land holdings and exit the sector.
CAPTION
