Land expropriation: IMF supports ‘transparent and constitutional’ reform

The International Monetary Fund (IMF) has thrown its support behind South Africa’s land reform strategy.

Montfort Mlachila, the IMF’s senior resident representative in South Africa, spoke to Reuters on Thursday, offering up the organisation’s views in the contentious subject of land expropriation.

Agricultural production and food security

Mlachila maintained that the IMF was in support of land reform, but only if it resulted in stability and equality, saying:

“We are in full support of the need to undertake land reforms to address the issues of inequality. It is particularly important not to undermine agricultural production and food security.”

The issue of land expropriation without compensation has dominated headlines in South Africa ever since the initial proposal for a Constitutional amendment was made earlier this year. The ruling African National Congress (ANC) and political agitators, the Economic Freedom Fighters (EFF), have been pivotal in the push for reform.

Privatisation versus nationalisation

But while the two parties leading the expropriation charge both agree on the redistribution of land as a means of redress and empowerment, their respective positions on the mechanisms involved differ.

The EFF want land to be nationalised; owned by the state, and redistributed to deserving citizens. While the ANC believes in securing private property rights and providing title-deeds to new owners.

Mlachila was careful not to announce his outright support for land expropriation. Instead, the representative praised a democratic and transparent process, echoing the sentiments of UK Prime Minister Theresa May.

ANC makes its first move

While the fate of the land expropriation bill hangs in the balance, the ANC has already moved to expropriate land based on the current Constitutional mandate. This, the ANC says, serves as a ‘trial-run’ aimed at testing the limits of the current Constitution.

Yet, the mere motion towards land reform has already revealed investor uneasiness, both locally and abroad.

Uncertainty reigns supreme as the ANC operate behind closed doors, breeding further angst amongst farmers, banks, foreign investors and prospective property owners.