SA allays investors’ fears over land expropriation
Deputy Finance Minister Mondli Gungubele says land expropriation without compensation is a regular topic in their discussions in New York.
He is leading a high-powered business and labour delegation to the US to raise capital on international bond markets and ease concerns ahead of Moody’s ratings decision later this month.
“It has become an invariable question in every meeting where we have gone and we understand. But all that we are saying to investors, the worst could have been in a situation where we ignore any emotive issue like land. This thing moves from 1913 and we adopted a constitution and that constitution ensures that there is a clause that deals with it because it’s a fundamental issue for either keeping our country together or keeping it apart. Now because we accept that since 1994 we haven’t handled this matter very well, now decisively the new president felt that it’s a matter that can no longer be side-lined because if we don’t deal with it, it is a primary source of uncertainty but if we deal with it we are able to put process that can ensure that it is dealt with in a legal way, and ensure that we continue to take control of its effects.”