South Africa’s agricultural and food security, according to Agri SA, hangs in the balance. Due to the severity of the situation, the organisation submitted its comments on the Expropriation Bill to the National Council of Provinces (NCOP).
On Monday, 6 March 2023, the agricultural organisation explained that the submission clearly signified the potentially catastrophic impact on the agricultural sector and the country’s food security, if passed by Parliament.
The submission follows the passage of the Bill in the National Assembly. Whereafter it was referred to the NCOP. Should the NCOP approve the Bill, it will then be sent to the President for assent, whereupon it will become law in South Africa.
At the time, when the Bill was passed on to the NCOP, Parliament explained, “The purpose of the Expropriation Bill is to repeal the existing Expropriation Act of 1975 to provide a common framework in line with the Constitution to guide the processes and procedures for the expropriation of property by organs of state. It further seeks to provide for certain instances where expropriation with nil compensation may be appropriate in the public interest. The NA plenary agreed to both Bills today.”
To read Parliament’s statement on it passing the bill, click here.
In its submission, Agri SA made clear what detrimental impact the Bill would have on the agricultural sector and the greater economy.
“Agri SA is particularly concerned about the definition of expropriation as well as section 12, which deals with compensation for expropriation and specifically sections 12(3) and 12(4) of the bill. The weakening of property rights will make capital raising exceedingly difficult for farmers in a cyclical sector that depends on the ability to leverage property rights to access operating capital,” explained the agricultural organisation.
Agri SA further stressed that this undermining of the viability of both established, emerging and new producers could lead to a catastrophic collapse of the country’s food security.
“South Africa already faces substantial threats to food production in the form of significant inflationary pressures, loadshedding, and deteriorating infrastructure. These challenges have been exacerbated by environmental phenomena including flooding, droughts and locust infestations,” said the organisation.
Beyond food security, Agri SA highlighted that the Bill would also undermine the very objective it sought to achieve: the transformation of the agricultural sector. “Without constitutionally protected property rights, fewer emerging farmers will be able to access the capital needed to build sustainable farming operations. Established as well as new entrants into the agriculture sector will have to contend with a right in law that could at any moment be taken away from them.”
Agri SA pointed out that the economic consequences of the Bill also extended far beyond the agricultural sector.
“With reduced food production would come the need for increased food imports to the detriment of our national balance of trade. The resulting net outflow of money from the local economy will be less revenue for the fiscus, leading to the diminution of desperately needed resources to rebuild the infrastructure and institutions, and to improve service delivery to the poorest in South Africa,” declared Agri SA.
In addition to the practical and economic implications, Agri SA stated that the Bill was further defective with reference to the South African Constitution and out of step with constitutional democracies globally.
“The watering down of property rights has dire consequences, as has been so graphically illustrated in the destruction of the Zimbabwean and Venezuelan economies,” said the organisation.
Therefore, Agri SA stressed that the potential ramifications of passing the Expropriation Bill are daunting.
“The country’s food security and the viability of the labour-intensive agricultural sector in South Africa hang in the balance. Property rights are the cornerstone of economic development and Agri SA will use every tool at its disposal to ensure their continued protection under the Constitution of South Africa. We trust the country’s representatives in the NCOP will heed this critical warning, and that government will reconsider this destructive legislative experiment,” concluded Agri SA.
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