A state of near panic has been fuelled by prophets of doom who want us to believe that by expropriating land without compensation SA will turn into another Zimbabwe, and that the ratings agencies will soon downgrade our credit ratings and scare off investors. Yet the two major rating agencies have both issued reports contradicting the stance of those opposed to change. S&P has indicated that it expects the rule of law, property rights and enforcement of contracts to remain in place, and that expropriation will not significantly hamper investment in the country. The agency has also affirmed its faith in SA’s institutions, including the judiciary, in undertaking checks and balances. Moody’s has also downplayed concerns by the local agricultural sector and indicated that the way the government handles land expropriation will be a test of its ability to balance attracting investment with alleviation of poverty. In its most recent comment, Moody’s took it even further, indicating that SA...

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