Ratings agency Moody says investors are worried about the uncertainty surrounding land and mining reforms in South Africa.
The agency said on Tuesday that South Africa’s economic growth prospects could be weakened by this situation.
Moody’s senior credit officer Lucie Villa says “Uncertainty over how this (land reform) will be achieved continues to limit near-term investment.”
“(It) could ultimately lead to a more pronounced fall in investment should the final terms of land reform be particularly onerous to businesses,” Villa added.
Land reforms move
South Africa’s parliament this year adopted a motion to amend the country’s Constitution. That is to allow for the expropriation of land without compensation.
The motion was brought by the leader of the Economic Freedom Fighters, Julius Malema. It received 241 in support, and 83 against.
The country’s Constitutional Review Committee has taken up the process and will report back to Parliament by August 30.
A 2017 land audit report by the department of land reform states that 72% of farm land is owned by white owners.
That is followed by coloured (people of mixed race) at 15%, Indians at 5% and blacks at 4%.
Source: Africafeeds.com
