{"id":228301,"date":"2018-02-28T08:01:34","date_gmt":"2018-02-28T06:01:34","guid":{"rendered":"https:\/\/businesstech.co.za\/news\/?p=228301"},"modified":"2018-02-28T08:13:04","modified_gmt":"2018-02-28T06:13:04","slug":"rand-takes-a-hit-over-fears-of-land-expropriation-without-compensation","status":"publish","type":"post","link":"https:\/\/businesstech.co.za\/news\/finance\/228301\/rand-takes-a-hit-over-fears-of-land-expropriation-without-compensation\/","title":{"rendered":"Rand takes a hit over fears of land expropriation without compensation"},"content":{"rendered":"<p>The rand weakened significantly in a matter of minutes on Tuesday, after parliament passed a motion that will start the process to allow for land expropriation without compensation in South Africa.<\/p>\n<p>Following subdued gains after the announcement of Cyril Ramaphosa&#8217;s cabinet reshuffle on Monday evening, the rand fell from R11.55\/dollar at 17h00 on Tuesday to as low as R11.75\/dollar by 17h35, after a motion was passed by the EFF and ANC to review land redistribution without compensation under the Constitution.<\/p>\n<p>This drop of\u00a01.4% made it the the worst-performing major and emerging-market currency on the day, <strong><a href=\"https:\/\/www.bloomberg.com\/news\/articles\/2018-02-27\/s-africa-lawmakers-to-review-constitution-on-land-expropriation\" target=\"_blank\" rel=\"noopener\">Bloomberg<\/a> <\/strong>reports.<\/p>\n<p>Parliament\u2019s Constitutional Review Committee is now expected to report back to lawmakers on changes to section 25 of the Constitution by 30 August.<\/p>\n<p>Cyril Ramaphosa, who was elected party leader in December and the nation\u2019s president 15 February, affirmed the ANC\u2019s decision to seize land without compensation to speed up land reform, but said it would only be done in a responsible manner that didn\u2019t harm the economy, agricultural production or food security.<\/p>\n<p class=\"\">The Democratic Alliance (DA) opposed the motion, arguing that changes to Section 25 will undermine property rights and scare off potential investors.<\/p>\n<p class=\"\">The DA\u2019s Thandeka Mbabama told parliament that expropriation without compensation was a way to divert attention from the failure by successive ANC-led governments to get to grips with the issue. Corruption and lack of farmer training and capacity remain obstacles to land redistribution.<\/p>\n<p class=\"\">\u201cIt is shocking that at the current rate it will take 35 years to finalise (land) restitution claims lodged before 1998,\u201d said Mbabama, who is deputy shadow minister for rural development and land reform.<\/p>\n<p>The rand strengthened slightly, and was trading at R11.72\/dollar at 07h30 on Wednesday morning.<\/p>\n<ul>\n<li>Dollar\/Rand: R11.72 \u00a0(-0.02%)<\/li>\n<li>Pound\/Rand: R16.29 \u00a0(0.01%)<\/li>\n<li>Euro\/Rand: R14.33 \u00a0(0.01%)<\/li>\n<\/ul>\n<p><em>With reporting from Bloomberg.<\/em><\/p>\n<hr \/>\n<p><strong>Read:\u00a0<a href=\"https:\/\/businesstech.co.za\/news\/government\/227319\/eff-to-introduce-land-appropriation-without-compensation-motion-to-parliament-report\/\" target=\"_blank\" rel=\"noopener\">EFF to introduce land \u2018appropriation without compensation\u2019 motion to Parliament: report<\/a><\/strong><\/p>\n","protected":false},"excerpt":{"rendered":"<p>The rand weakened significantly in a matter of minutes on Tuesday, after parliament passed a motion that will start the process to allow for land expropriation without compensation in South Africa.<\/p>\n","protected":false},"author":10,"featured_media":222767,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[11121],"tags":[26],"class_list":["post-228301","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-finance","tag-headline"],"_links":{"self":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts\/228301","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/users\/10"}],"replies":[{"embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/comments?post=228301"}],"version-history":[{"count":9,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts\/228301\/revisions"}],"predecessor-version":[{"id":228341,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts\/228301\/revisions\/228341"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/media\/222767"}],"wp:attachment":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/media?parent=228301"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/categories?post=228301"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/tags?post=228301"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}