GRAEME HOSKEN: Warnings land plan could leave R180-billion hole for banks
There was an exposure of R180-billion to commercial farmers, for which the land was the collateral
Government’s commitment to ensure that land is expropriated without compensation jeopardises a nearly R200-billion loan book by financial institutions to commercial farmers and risks entrenching poverty, say experts. On Tuesday, parliament passed a motion that would see a review of the Constitution on how land could and should be expropriated. The review is to be concluded by 30 August.The motion has opened the floodgates, with supporters and detractors at each other’s throats over the potential impact. The lack of clarity on who could lose their land to who, and what kind of land would be targeted, has created widespread panic. While some, including the SA Banking Association, agricultural economists and traditional white farming associations, warn of massive investment losses, others have called for the review to be used for a national dialogue on the issue of land reform. Banking Association SA managing director Cas Coovadia said such a move would discourage investment and erode ...
Would you like to comment on this article?
Sign up (it's quick and free) or sign in now.
Please read our Comment Policy before commenting.
Subscribe now to unlock this article.
Support BusinessLIVE’s award-winning journalism for R129 per month (digital access only).
There’s never been a more important time to support independent journalism in SA. Our subscription packages now offer an ad-free experience for readers.
Cancel anytime.
Questions? Email helpdesk@businesslive.co.za or call 0860 52 52 00. Got a subscription voucher? Redeem it now.