In March 2014 the government passed legislation regarding the redistribution of
agricultural land. Several methods to transfer agricultural land from white owners to
black farmers have failed in the past and were unsuccessful due to various reasons.
The major reasons must be sought in the inability and lack of capital of the new
generation of farmers, as well as the incapacity of the government to transfer land.
According to the new legislation farmers will be forced to sell 50% of their land to the
State who will in turn transfer the land to the farmer's workers. The government seems
to determine the selling price, but the value is not paid to the farmer, but it is paid into a
pool that will serve to finance the relevant employee’s expenses.
During the run-up to the election, the president often promised black voters that the
alienation of agricultural land to be accelerated during his second term in office.
Leon Louw of the Free Market Foundation has recently said that: "Urban people's
property rights are just as much threatened as farmers' rights, but they do not realize it
yet. As ownership of commercial agricultural land is threatened, all other assets are also
under threat.
Louw warned at a property rights meeting of AfriSake that the future of property in
South Africa is seriously compromised. He referred to the fact that black people after 20
years in the new South Africa has no property rights, and said, "Why do they not
complain about it? It's like the worst days of apartheid. None of us will be able to protect
our property rights if blacks do not have property rights that they will want to protect. "
Two pilot projects were launched by the Foundation to provide free full property rights to
black people in the townships. The transfer cost of title deeds to the value of R1800 per
property was made possible by donations from the public.
Dr. Anthea Jeffery, head of specialist research at the Institute of Race Relations, said at
the conference that the SA Communist Party sees the National Democratic Revolution
(NDR) as the way forward to a socialist goal...More than 40% of the current members of
the Zuma cabinet are members of the SACP and there are others about whom question
marks are hanging.
She also said: "The country closes its eyes to the NDR and do not discuss it to prevent
investors to get a fright In the meantime the ANC and SACP push ahead with their real
agenda, The public is encouraged by the National Development Plan and the presence
of Mr. Cyril Ramaphosa as vice president let them feel at ease”
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Piet le Roux, a researcher of Solidarity, referred to 124 pieces of legislation, policy
proposals and court decisions that threatens ownership.
AfriForum tabled a five-point plan in turn which includes extension of property rights to
residents of informal settlements; the questioning of redistribution as a government
policy; legal actions to protect property rights, hedging of personal assets, and political
and economic pressure by the international communities.
Dawie Rood, a leading economist expressed himself as follows on this topic “I consider
private property rights, I mean the broad definition, as the single most important right in
a free economy. The protection of private property rights should be one of the primary
functions of the state. It is ironic that it is precisely this right that governments
themselves often undermine. "
"Recent developments in South Africa already suggest that the state seeks to
undermine private ownership seriously .Many of the proposed laws is ironically referred
to as the protection of property rights, while it is all but the protection of property rights ."
"To make worse, the Constitutional Court recently ruled that expropriation is not only
easier, but in fact even possible without compensation."
"In short, the various laws and regulations means that private property rights are further
restricted and, more important, that today the state wants to make it much easier to
expropriate private property (read: stealing) All property are affected and not only real
estate, it also includes other fixed assets, financial instruments, pension funds,
intangible assets even money in your savings account”
Rood proposed the following suggestions to protect your assets so that the state cannot
steal it as easy.
------- Burden your income property to the maximum limit from a beneficial tax point.
Then you get the added protection that the asset is not as attractive for expropriation
------- Diversify your portfolio. Make sure a portion of your assets are in foreign countries
where the chances are slimmer that politicians can lay their hands on it.
------- Try to ensure that your assets are liquid as far as possible. This can assist urgent
decisions if your assets are threatened by government...
------ Letting rather than buy. For example, consider any offer where the opportunity
exists to sell your property at a fair price and lease it back...
------ Get foreign business partners. Expropriation will be more difficult if foreigners'
assets are also stolen. Their government will object.
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------ Diversify your investments using discretionary structures and not just pension or
provident funds
------- Do not violate any laws and maximize your income and ensure that your taxes are
up to date.
From the foregoing it is clear that red lights are beginning to flicker and just as was the
case in Hungary, Romania and other Eastern Bloc countries in 1956, Millions of white
people can overnight be stripped from their assets. Proper thought and careful
planning by the 'haves "to protect them from the" HAVE NOTS” and the government, is
urgently needed while the time is still there.
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