Transformation - Land Reform - Property Rights

  

Name:

Expropriation Bill 

Department:

Department Public Works 

Summary:

The Expropriation Bill seeks to regulate the procedure and the calculation of compensation when the state expropriates property. 

Effect on
agribusiness:

The Bill will bring the process in line with the administrative justice requirements in the Constitution and to calculate compensation according to the ‘just and equitable’ principle in section 25 of the Constitution. Expropriation can have serious consequences for bond holders if the compensation recieved is less than larket value and negotiations with former owners regarding the apportionment of compensation will need to take place.

Process:

The Bill was passed by both houses of Parliament but, after receiving petitions from the public, the President sent it back to the National Council of Provinces so that it can be further consulted upon in the National House of Traditional Leaders.

Agbiz submission: Done

  

  

Name:

Regulation of Agricultural Landholdings Bill

Department:

Department Rural Development and Land Reform

Summary:

The Bill creates the Land Commission to receive compulsory disclosures of race, nationality and gender from all owners of agricultural land. It also prohibits future ownership of agricultural land by foreigners and imposes upper limits or 'ceilings' on land ownership.

Effect on
agribusiness:

Land ceilings have the potential to dramatically distort the land markets. Bond holders may have to deregister and re-evaluate bonds over land in excess of the ceiling. Agribusiness's clients may be negatively affected if the ceilings deprives them of the ability to take advantage of scale benefits. Finally, the Bill will negatively affect land refrom beneficiaries by supplying land that may not be economically viable, with limited access to natural resources or services. 

Process:

The Bill was published for public comments and Agbiz duly submitted comments. The Bill is now being sent to Nedlac where Agbiz will participate in the task team as part of Organised Business.

Agbiz submission: Done

  

  

Name:

Property Valuation Regulations

Department:

Office of the Valuer-General / Department of Rural Development and Land Reform

Summary:

The draft regulations introduce a formula to value land identified for land refrom at a ‘just and equitable’ rate, defined as the difference between market value and current use value.

Effect on
agribusiness:

The formula seeks to artificially push down the price of land bought or expropriated for land reform purposes. This can expose bond holders to losses and result in valuations made according to an incorrect interpretation of the Constitution being contested in court.

Process:

The draft regulations were published for public comments. Agbiz compiled draft comments which were submitted on the 20th of June 2017. We are trying to secure a meeting via BUSA. 

Agbiz submission: Done

  

    

Name:

Restitution of Land Rights Amendment Bill

Department:

Private member's Bill

Summary:

After the 2014 Bill which reopened the claims lodgement process was declared unconstitutional in 2016, a new Bill has been tabled in Parliament as a Private Member’s Bill to reopen the claims lodgement period until 2021.

Effect on
agribusiness:

This Bill will seek to reopen the lodgement period for land restitution claims, thereby extending the period which it will take to receive, process, research and settle land claims. Whilst restitution is supported, additional work is required to improve its efficiency and reduce the uncertainty caused in the land market.

Process:

This Bill will seek to reopen the lodgement period for land restitution claims, thereby extending the period which it will take to receive, process, research and settle land claims. Whilst restitution is supported, additional work is required to improve its efficiency and reduce the uncertainty caused in the land market.

Agbiz submission: Done

  

    

Name:

Communal Property Associations Amendment Bill

Department:

Department of Rural Development and Land Reform

Summary:

This Bill seeks to provide for legally secure tenure rights to occupiers communal areas by transferring ownership from the state to the communities. Communities can decide on their governance structures as well as the nature and extent of individual rights to the common property.

Effect on
agribusiness:

The current tenure arrangement is the primary factor inhibiting agricultural development in our communal areas. By awarding ownership to communities, the Bill will make it possible for communal farmers to leverage their land rights to obtain finance from agribusinesses and financial institutions.

Process:

The Bill has been published for public comments.

Agbiz submission: n/a

  

    

Name:

Communal Land Tenure Bill

Department:

Department of Rural Development and Land Reform

Summary:

This Bill seeks to provide for legally secure tenure rights to occupiers communal areas by transferring ownership from the state to the communities. Communities can decide on their governance structures as well as the nature and extent of individual rights to the common property.

Effect on
agribusiness:

The current tenure arrangement is the primary factor inhibiting agricultural development in our communal areas. BY awarding ownership to communities, the Bill will make it possible for communal farmers to leverage their land rights to obtain finance from agribusinesses and financial institutions.

Process:

The Bill has been published for public comments.

Agbiz submission: In process

  

    

Name:

Extension of Security of Tenure Amendment Bill

Department:

Department of Rural Development and Land Reform

Summary:

The Amendment Bill seeks to create the Land Rights Management Board and Land Rights Management Committees to mediate and arbitrate land tenure disputes. The Bill also introduces further procedures that must be followed prior to eviction, such as the requirement that the evictee must be legally represented at eviction proceedings.

Effect on
agribusiness:

New structures and a focus on alternative dispute resolution is viewed as a positive step to assist land rights disputes to be resolved amicably and afforably. Further restrictions are however a potential liability from an agribusiness point of view as it waters down the property rights of land which an agribusiness may hold an interest (such as a bond) in. 

Process:

The Bill has been passed by the National Assembly and will now be referred to the National Council of Provinces.

Agbiz submission: Done

  

    

Name:

Aquaculture Bill

Department:

Department of Agriculture, Forestry and Fisheries

Summary:

The Bill deals at length with a number of industry-specific issues but is included here because it seeks to introduce a compulsory licencing regime for producers and processors involved in aquaculture. 

Effect on
agribusiness:


This licencing regime sets a dangerous precedent for other soft commodities and can limit the right to choose one’s profession or trade and result in a deprivation of property if a licence is revoked or refused. From an agribusiness point of view, it hightens the risk of investing in or doing business with aquaculture producers as their whole operations may become subject to an arbitrary licencing requirement.

Process:

The Nedlac process has been finalised and must now be sent to Parliament.

Agbiz submission: Done

  

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