Expropriation without compensation will kill SA’s investment potential

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Voices| Expropriation without compensation will kill SA’s investment potential, writes Jacques Jonker

Without properly defined and delineated property rights, it is near impossible for economic entities to confidently engage in economic activity, more specifically in fixed/direct investment, which is a requisite for economic growth and prosperity.

If we look at time series data for growth in gross fixed capital formation , the decline is already underway even though the Constitution has yet to be amended:Graph compiled using raw data from the Reserve Bank We can also see how important gross fixed capital formation is for economic growth, without which any prospect of lowering unemployment and poverty levels is reduced to ashes.Source: Graph compiled using raw data from the Reserve Bank

Ramaphosa bragged about bagging R363 billion in investment pledges on his latest investment drive, but it is crucial to remember that these pledges can be rescinded. According to Schussler, the country needs about R3 trillion in fixed investment if it is to become a normal emerging market , which also makes Ramaphosa’s gains in investment seem minuscule, not only relative to what government aims to achieve, but also relative to what is actually required.

 

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I hope the writer had in mind what kind of feeling the people who were forcefully removed from their ancestral land felt now that he writing about how its going to hurt the investment.

So,Whites must continue to occupy the stollen land,neh?

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