LETTER: Expropriation is another peril for Agoa renewal

Much concern has been expressed about how SA’s geopolitical posturing might influence its future participation in the US’s African Growth & Opportunity Act (Agoa). Rather less attention has been given to the risks inherent in domestic policy.

Among the conditions for participating in the initiative are a commitment to respecting property rights. Yet for years the SA government has trumpeted its intention to abridge these through a campaign of expropriation without compensation (EWC).

While this issue may not have the public prominence it once did, it remains a very real risk. As we have warned, if enacted the Expropriation Bill will place enhanced powers to carry out the expropriation agenda in the hands of a decidedly untrustworthy state. The bill is now before the National Council of Provinces.

The prospect of expropriation in SA was noted in US congressional hearings last month, with concern expressed that this would not only undercut the country’s economic prospects (we have heard repeatedly from business people that EWC would in effect make the country “uninvestable”) but also undermine its future as a constitutional democracy.

Certainly, with the main priority being to elevate SA’s anaemic annual economic growth rate (below 2% in 2022) to about 7%, every available opportunity must be harnessed. Agoa represents an important set of opportunities, not least to our hard-pressed farmers and manufacturers. To lose it over an inherently growth-retarding strategy such as expropriation would be the height of folly.

Terence Corrigan
Institute of Race Relations

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