CONSTITUTIONAL CHANGE
Rand’s swings reflect expropriation fears
The ANC decided at is elective conference in December that the constitution should be changed to allow for the expropriation of land
If you wanted proof of how jittery investors are about the ANC’s plans to change the constitution to permit expropriation of land, look no further than Tuesday’s brief surge in the rand after a parliamentary committee announced it was withdrawing a bill on the issue. The currency, which strengthened as much as 1.5% against the dollar, pared the gains after it became clear that the withdrawal of the bill was a procedural move, while MPs continue to study whether to let the government seize land without paying for it. "It looks like this was always going to happen and it’s purely procedural," said Brad Preston, chief investment officer at Mergence Investment Managers in Cape Town. "It doesn’t seem to indicate any change in ANC policy directions." The ANC decided at is elective conference in December that the constitution should be changed to allow for the expropriation of land without compensation, but the changes should not undermine the economy, agricultural production and food secu...
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