Continuing uncertainties over the government’s expropriation without compensation land reform programme has previously stalled investments in the agricultural industry.
The Expropriation Bill has finally been adopted by the National Assembly, but does the government want to arbitrary seize the private property of land owners?
Not according to legal expert Ulrich Roux, who has unpacked how the developments could affect property owners.
After 14 years since it was initially tabled in 2008, the ANC and GOOD, with their two-thirds majority, managed to push the bill through.
The DA, EFF, IFP, Freedom Front Plus, and ACDP objected to the bill, citing reasons around how the bill had been drafted and that it was limited and would not address land reform.
Roux of Ulrich Roux and Associates said the bill sets out a process which the government must comply with to ensure that land is being properly expropriated.
He said this includes the input of the expropriated land owner and the proposed expropriating authority that assists the landowner in the process and acts in their interests to prevent any abuse or arbitrary conduct of the government.
"There is a misconception that the bill permits the government to arbitrarily seize private property of landowners.
"The subject of land is an emotive issue in South Africa, especially for communities who were deprived of their right to own land during the Apartheid era," Roux said.
Roux explained that land expropriation without compensation is only permitted in certain circumstances and must meet stricter requirements, such as proof of abandonment or land being used for speculative purposes.
The bill will be referred to the National Council of Provinces, who will then either pass the bill as it is, or with amendments, or they can reject the bill. This could take up to six weeks.
If there are no amendments to be made, the bill will be referred to President Cyril Ramaphosa, who will sign the bill into law.
Agricultural body AgriSA executive director Christo van der Rheede said the bill had been adopted without addressing serious flaws in the bill for the agricultural sector and economy.
Van der Rheede said it was unfortunate that the National Assembly did not use the debate to engage with the serious flaws that remain in the bill.
He said the National Assembly had missed an opportunity to mitigate likely harm to the agricultural sector and wider economy should the bill in its current form be adopted.
"The bill that was passed by the NA continues to allow for the possibility of nil compensation for expropriation in terms of clauses 12(3) and (4)." In its initial submissions to the government on the bill, Agri SA commissioned two studies to inform and support its commentary.
"Our position remains that the inclusion of the nil compensation clause will undermine access to capital and capital formation for the sector and economy," Van der Rheede said.