Wandile Sihlobo, chief economist at the Agricultural Business Chamber of South Africa (Agbiz), argues that the concerns surrounding the recently signed Expropriation Act are exaggerated. He emphasizes that the Act will be used as a last resort and is not a form of government policy to drive land reform. Sihlobo clarifies that the possibility of nil compensation will be determined by the courts, taking into account justice and equity.
A mistake is being made in that people conflate the Expropriation Act with land reform , says agricultural economist Wandile Sihlobo. Picture: Supplied
“But people forget that such a determination will be made by the courts, which need to consider whether it is just and equitable.”The signing of the act has caused an uproar in South Africa, especially from Afrikaner groupings AfriForum and its trade union Solidarity. On Monday, the Democratic Alliance, which is one of the partners in the government of national unity , filed papers in the Constitutional Court to challenge the piece of legislation, which it calls “irrational and “unconstitutional”.‘Not a form of land reform’
Sihlobo notes that agriculture had a challenging 2024, including mid-summer droughts and biosecurity threats, but says there will be recovery for the sector in 2025. Wandile Sihlobo says recent developments in SA could see more jobs coming from the agricultural value chain. Image: SuppliedExpropriation Act in court: Experts on whether the DA has a strong case“We export between 50% and 60% of what we produce in value terms. And yes, the areas to which we export are nicely diverse.”
EXPROPRIATION ACT LAND REFORM SOUTH AFRICA AGRICULTURE ECONOMY
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