Land expropriation won’t disrupt the financial sector‚ ANC tells AgriSA

ANC's subcommittee on economic transformation chairman Enoch Godongwana.
ANC's subcommittee on economic transformation chairman Enoch Godongwana.

The ANC has reiterated its position that an amendment to Section 25 of the Constitution to allow for land expropriation without compensation will not disrupt the financial sector.

Speaking at a meeting with AgriSA‚ the party’s economic transformation chair‚ Enoch Godongwana said: “The banks are exposed to the tune of R160-billion to this [agricultural] sector. As we embark on this journey‚ we should not create risk in the system. That matter‚ and even in the formulation of the resolution‚ we had it in the back of our minds.”

The ANC will expropriate property for redistribution and in certain circumstances compensation will not be paid but‚ Godongwana said‚ “we are not saying in all circumstances we will not pay compensation”.

About 200 farmers were present at the meeting‚ which was held in Centurion‚ Gauteng.

The ANC’s ANC head of elections‚ Fikile Mbalula‚ stressed that there will be no nationalisation of land - that the party would not “destroy” commerce – but “we cannot continue with land hunger”.

AgriSA reaffirmed its position that it did not support a constitutional amendment to allow for expropriation without compensation.

In a joint press statement‚ AgriSA said Section 25‚ as it currently stands‚ provides the state with the legislative powers to ensure that land reform takes place in an “orderly way”.

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