Agri SA has warned that the African National Congress’ (ANC) decision to amend Section 25 of the Constitution to allow for the expropriation of land without compensation would have a negative effect on the country’s economy.
The decision is one of the resolutions of the ANC’s 54th National Elective Conference which ended at Nasrec in Johannesburg on Wednesday evening.
The organisation says the financial markets will divest in South Africa and investor confidence will be shattered.
Agri SA president Dan Kriek has challenged the ANC to explain to South Africans how the proposed amendment of the Constitution would enhance food production or develop new farmers.
Kriek also says they will meet with the ruling party and have a robust discussion on the matter.
“Let’s call this type economic populism. It would have dampening effects on investor confidence. People would have to make economic decisions. Do I buy a farm? Do I invest in my farm? Do I invest in technology? How do I grow my business? People are very unsure. They are not sure whether they should invest or not. The uncertainty will prevail with this decision.”