The Department of Agriculture, Land Reform and Rural Development says it has had no discussions with the country’s banks about being compensated for any loans against a property that is expropriated.
Replying in a recent parliamentary Q&A session, minister Thoko Didiza also indicated that there have also been no other financial discussions with banks about how the land expropriation bill will impact loans and the wider economy.
Speaking to BusinessTech, department spokesperson Reggie Ngcobo confirmed that Didiza has not met with the country’s banks as she is waiting for the bill to be finalised.
“The issue of home loans has not been discussed with the banks as the land expropriation bill is still an ongoing parliamentary process,” said Ngcobo.
“Currently the issue is out of her control and we will assess the situation once the bill has been finalised.”
President Cyril Ramaphosa has said that South Africa must finalise its land expropriation policy in 2020.
Speaking at a conference on Tuesday (14 January), Ramaphosa asked business leaders to present solutions to redistribute land to majority blacks as the government works to finalise changes to legislation and the constitution to allow for the expropriation of land without compensation.
“This year we are going to have to finalise the legislation and the constitutional construct on the land question.
“One of the things we have been asking for is the business community to come forward with solutions of resolving the centuries-old problem of land.
“I would like to see the business community taking this issue up rather more seriously.”