Misconceptions over property rights are widespread in South Africa, a fundamental misunderstanding being that ‘property rights’ refer only to real estate.
This is not the case: property rights encapsulate all property and not only built structures and land. Yet, this misconception is the driving force behind support for expropriation without compensation (EWC).
According to the Oxford English Dictionary, property can be defined as: ‘A (usually material) thing belonging to a person or group of persons, etc.; a possession.’
It is clear from this meaning that property can be anything owned by an individual or group of individuals.
The current process to change Section 25 of the Constitution will, contrary to popular belief, affect not only those wealthy enough to own a portfolio of real estate and land. If Section 25 is changed to allow for the EWC, it will affect everyone.
It will affect you if you own a car, household items, intellectual property, livestock, shares, and so on. All of these things are property and property rights are intended to protect the rights of their legal owners from theft or confiscation.
Hypothetically speaking, if Section 25 is changed, the government could seize any of your property: your house, your car, your intellectual property, or your shares if they deem it to be in the ‘public interest’. In effect, you would be beholden to government bureaucrats and cadres of the African National Congress (ANC).
Wealth creation
Property, including real estate in particular, is a tool for wealth creation. If you own real estate you can use it as collateral to secure a loan from the bank to start a business or fund your children’s education.
Secure property rights underpin our entire banking system. Banks loan money to individuals or companies to acquire property, such as a house, land, or a car. The property is an insurance policy for the bank in the case of default on the part of the borrower. If you can no longer afford to repay the loan, either the bank may seize your property and recover its losses, or you must sell it and repay the bank.
This system would collapse without property rights, as banks cannot possibly expect borrowers to pay for property taken from them without compensation.
This system is what allows entrepreneurs to start businesses and foreign investors to invest here. It enables job creation, and it provides opportunities for people to move up the socioeconomic ladder and provide a better life for their children.
Perpetual renters
The ruling party does not believe that property rights are a prerequisite for a functioning society, and thinks that South Africans can be perpetual renters on property they will never own.
The implication of its policy is that all of South Africa will function according to the system currently used on tribal land, where land – the property – belongs to the tribe and, by default, to the chief, with the chief determining who receives land and how much they receive.
This why the amendment to Section 25 of the Constitution must be opposed by every South African. We cannot be allowed to become serfs who depend on the mercy of government officials and politicians. Property rights are human rights and we must be ever vigilant in ensuring our rights are not stolen from us.
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