President Cyril Ramaphosa’s acknowledgement in last week’s Opening of Parliament speech that property rights are key to economic success is to be welcomed, but clarity is needed on the Expropriation Bill and the ANC’s commitment to expropriation without compensation (EWC), says the Institute of Race Relations (IRR).
IRR researcher Chris Patterson notes that while thePresident’s Opening of Parliament Address “set the right tone … the Expropriation Bill awaiting his signature is the single biggest threat to the Government of National Unity’s ambition to expand access to title for South Africans”.
In his speech, Ramaphosa said that “the provision of title deeds for land […] provides people with the assets they can use to improve their economic position.” Patterson points out that this shows the President recognises how important property rights are for economic development and prosperity.
In a statement, the IRR notes that it has previously written to President Ramaphosa to raise concerns about the constitutionality of the Expropriation Amendment Bill, passed by Parliament in late March. The President has the sole prerogative to send a Bill back to the legislature if he is concerned about the constitutionality of the Bill, says Patterson.
Another concern is that the President’s reference to the expansion of title deeds could create a contradiction.
Says Patterson: “The President cannot argue that title deeds are an important component in helping people to become more prosperous and escape poverty while at the same time he is getting ready to sign the Expropriation Bill, which would, at a stroke, imperil property rights and could make title deeds worthless.”
Patterson said that the Government of National Unity had the opportunity to ignite economic growth, which South Africa desperately needs, but for this to happen, there had to be clarity on contentious legislation such as the Expropriation Bill and the recently signed NHI Act.
Just as the IRR has called for clarity on NHI funding, so it also urges that contentions over the Expropriation Bill be resolved by the GNU. Three of the parties currently in the GNU have voted against the Bill, said Patterson.
The IRR said that clarity on this danger to property rights will signal to foreign and domestic investors just how strong the GNU’s commitment to economic growth is. However, property rights were not just important to investors, Patterson said – they are also vital for people who had for too long been locked out of being property owners and prevented from having the dignity and economic agency that owning property can provide.
Patterson concluded by saying that Not signing the Expropriation Bill would not only provide clarity to investors but will also let ordinary South Africans know that the government was one that was committed to helping them and their families live dignified and prosperous lives.