Image credit: Union Gardens (SA) | Wikimedia Commons
President Jacob Zuma announced in his State of the Nation Address (2015) legal reforms with regards to foreign ownership of land in South Africa. He said:
“In terms of our new proposed laws, a ceiling of land ownership will be set at a maximum of 12 000 hectares (ha). Foreign nationals will not be allowed to own land in South Africa but will be eligible for long-term lease.
In this regard, the Regulation of Land Holdings Bill will be submitted to Parliament this year. Through the Land Reform Programme, more than 90 000 ha of land have been allocated to smallholder farmers, farm dwellers and labour tenants.”
The President’s announcement caused panic by investors, especially those with assets in the agricultural sector. For this reason, it is important to get the proposals right.
The President has subsequently clarified that the Regulation of Land Holdings Bill does not propose a blanket ban on foreign land ownership.
Responding to concerns raised by Members of Parliament and members of the public, the President explained that the Land Holdings Bill applies only to agricultural land: “It does not affect foreign nationals who are planning to buy homes or residences.”
Further, the Bill, if passed by Parliament, will have limited impact on multinational corporations operating in South Africa. “Multinationals will be affected only if their future property purchases consist of agricultural land,” explained the President.
The President also responded to concerns that the Bill, if passed, will affect food security in South Africa. The Bill is part of a broad array of measures aimed at reducing inequitable land ownership.
The measures have two aims. First, to promote access to land by the previously disadvantaged groups. Second, to ensure “effective participation of the previously excluded black majority in agriculture and food production.”
The President undertook an “inclusive and scientific process” to assess ownership in different land markets “so as to make sure that [the measures] will not prejudice food security in the country.”
Finally, it is important to understand that the Bill is at consummation stage. It has to undergo a lengthy and vigorous legislative process, during which members of the public will get an opportunity to comment on the proposals.
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