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EXPROPRIATION FOR (RADICAL) ECONOMIC TRANSFORMATION: political viewpoints & alternatives Prof Hanri Mostert DST/NRF SARChI Research Chair: Mineral Law in Africa Faculty of Law, Department of Private Law, UNIVERSITY OF CAPE TOWN Visiting Professor: RIJKSUNIVERSITEIT GRONINGEN with LLB Students: Advanced Property Law (Expropriation) Seminar, UNIVERSITY OF CAPE TOWN

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Page 1: EXPROPRIATION FOR (RADICAL) ECONOMIC ... - Land Governancelandgovernance.org/assets/Hanri-Mostert.pdf · Land Law Insecure land relations Statutory exclusion Group Areas Double standards

EXPROPRIATION FOR (RADICAL) ECONOMIC TRANSFORMATION:

political viewpoints & alternatives

Prof Hanri Moster t

DST/NRF SARChI Researc h Chair : Mineral Law in Afr ica

Facu l t y o f Law, Depar tmen t o f P r i va te Law, UN IVERS I TY OF CAPE TOWN

V i s i t i ng P ro fe s so r : R I JKSUN IVERS I TE I T GRONINGEN

wi th

LLB S tudent s : Advanced Proper ty Law (Expropr iat ion ) Seminar, UNIVERS ITY OF CAPE TOWN

Page 2: EXPROPRIATION FOR (RADICAL) ECONOMIC ... - Land Governancelandgovernance.org/assets/Hanri-Mostert.pdf · Land Law Insecure land relations Statutory exclusion Group Areas Double standards

Apartheid Land Law

Insecure land relations

Statutory exclusion

Group Areas

Double standards

Marginalization and

impoverishment

Page 3: EXPROPRIATION FOR (RADICAL) ECONOMIC ... - Land Governancelandgovernance.org/assets/Hanri-Mostert.pdf · Land Law Insecure land relations Statutory exclusion Group Areas Double standards

SA LAND REFORM: THREE TIERS

RES

TITU

TIO

N

• REDRESS

• Correcitng Past Injustice

RED

ISTR

IBU

TIO

N

• ACCESS

• Landownership & Title to Land, rather than diversified rights

TEN

URE

SEC

URIT

Y

• SECURE LAND RELATIONS

• Formalisation, Diversification

Page 4: EXPROPRIATION FOR (RADICAL) ECONOMIC ... - Land Governancelandgovernance.org/assets/Hanri-Mostert.pdf · Land Law Insecure land relations Statutory exclusion Group Areas Double standards

REDISTRIBUTION GOALS: FROM 1997 WHITE PAPER TO TODAY

ORIGINAL GOAL:30% OF FARM-LAND IN BLACK HANDS BY 2014

REALITY:

8-10% OF FARM-LAND IN BLACK HANDS IN 2017

Page 5: EXPROPRIATION FOR (RADICAL) ECONOMIC ... - Land Governancelandgovernance.org/assets/Hanri-Mostert.pdf · Land Law Insecure land relations Statutory exclusion Group Areas Double standards

REDISTRIBUTION POLICY: HISTORY

RDP

GEAR

SLAG

LRAD

Recap & 50/50

Page 6: EXPROPRIATION FOR (RADICAL) ECONOMIC ... - Land Governancelandgovernance.org/assets/Hanri-Mostert.pdf · Land Law Insecure land relations Statutory exclusion Group Areas Double standards

Wa l k e r / D u b b P L A A S F a c t c h e c k n o 1 .

Page 7: EXPROPRIATION FOR (RADICAL) ECONOMIC ... - Land Governancelandgovernance.org/assets/Hanri-Mostert.pdf · Land Law Insecure land relations Statutory exclusion Group Areas Double standards

Land Reform: Political Cycle

Political Commitment

Hesitation to Implement

Criticism and Pressure

Revision

Page 8: EXPROPRIATION FOR (RADICAL) ECONOMIC ... - Land Governancelandgovernance.org/assets/Hanri-Mostert.pdf · Land Law Insecure land relations Statutory exclusion Group Areas Double standards

“WHITE MONOPOLY CAPITAL”

Page 9: EXPROPRIATION FOR (RADICAL) ECONOMIC ... - Land Governancelandgovernance.org/assets/Hanri-Mostert.pdf · Land Law Insecure land relations Statutory exclusion Group Areas Double standards

“RADICAL ECONOMIC TRANSFORMATION”

Page 10: EXPROPRIATION FOR (RADICAL) ECONOMIC ... - Land Governancelandgovernance.org/assets/Hanri-Mostert.pdf · Land Law Insecure land relations Statutory exclusion Group Areas Double standards

Which direction?

Page 11: EXPROPRIATION FOR (RADICAL) ECONOMIC ... - Land Governancelandgovernance.org/assets/Hanri-Mostert.pdf · Land Law Insecure land relations Statutory exclusion Group Areas Double standards

Expropriation as a response to slow land reform?

Page 12: EXPROPRIATION FOR (RADICAL) ECONOMIC ... - Land Governancelandgovernance.org/assets/Hanri-Mostert.pdf · Land Law Insecure land relations Statutory exclusion Group Areas Double standards

Expropriation Law in South Africa

Expropriation Act, 1975 Abolition of

Racially Based Measures Act, 1991

Constitution: Interim, 1993; Final 1996

Page 13: EXPROPRIATION FOR (RADICAL) ECONOMIC ... - Land Governancelandgovernance.org/assets/Hanri-Mostert.pdf · Land Law Insecure land relations Statutory exclusion Group Areas Double standards

Towards a new expropriation law

• Judicial consideration of compensation

2008 Bill Flawed

• Further revisions

• General approval

2013 Bill Public Comment

2015 Bill

Page 14: EXPROPRIATION FOR (RADICAL) ECONOMIC ... - Land Governancelandgovernance.org/assets/Hanri-Mostert.pdf · Land Law Insecure land relations Statutory exclusion Group Areas Double standards

Expropriation Bill [B 4B-2015]

President (Referred Back)

NCOP Select Committee (March 2016)

National Assembly Adopted (Feb 2016)

Revised Version (Feb 2016)

Public Comment (Jun 2015): Further deliberations

Introduced in Parliament: Portfolio Committee on Public Works (Feb 2015)

Page 15: EXPROPRIATION FOR (RADICAL) ECONOMIC ... - Land Governancelandgovernance.org/assets/Hanri-Mostert.pdf · Land Law Insecure land relations Statutory exclusion Group Areas Double standards

New Process

Inspection Consultation Expropriation Compensation

Page 16: EXPROPRIATION FOR (RADICAL) ECONOMIC ... - Land Governancelandgovernance.org/assets/Hanri-Mostert.pdf · Land Law Insecure land relations Statutory exclusion Group Areas Double standards

Operation Phakisa

Page 17: EXPROPRIATION FOR (RADICAL) ECONOMIC ... - Land Governancelandgovernance.org/assets/Hanri-Mostert.pdf · Land Law Insecure land relations Statutory exclusion Group Areas Double standards

Operation Phakisa:

‘just and equitable’

compensation does not

mean the State should

pay a premium for land

reform

Zero Compensation

Possible

Narrower Understanding:

• Intellectual Property

• LR = Restitution Only

• Market-based

compensation

• Critical of Land Valuer

General’s Office

Radically different

approach:

• Land use licences

• State custodianship

• No Compensation –

see MPRDA

Page 18: EXPROPRIATION FOR (RADICAL) ECONOMIC ... - Land Governancelandgovernance.org/assets/Hanri-Mostert.pdf · Land Law Insecure land relations Statutory exclusion Group Areas Double standards
Page 19: EXPROPRIATION FOR (RADICAL) ECONOMIC ... - Land Governancelandgovernance.org/assets/Hanri-Mostert.pdf · Land Law Insecure land relations Statutory exclusion Group Areas Double standards

ALTERNATIVES?

VOLUNTARY RELINQUISHMENT OF LAND:

Witzenberg Partners in Agri-Land Solutions (PALS)

“… a radical departure from past land reform initiatives and is based on sound business principles, mentorship and training of emerging black farmers to become successful commercial farmers.”

Page 20: EXPROPRIATION FOR (RADICAL) ECONOMIC ... - Land Governancelandgovernance.org/assets/Hanri-Mostert.pdf · Land Law Insecure land relations Statutory exclusion Group Areas Double standards

THANK YOU [email protected]

Melissa Mtolo, Sashen Govender, Damian De Klerk, Rose Buckland, Piers Rosholt,

Asma Khalifa, Ben Prinsloo, Caroline de Castelain, Dalit Anstey, Geoffrey Allsop,

Katie Jennings, Keanan Wheeler, Kelsey Pailman, Lisa van Niekerk, Maria Louw,

Namhla Bula, Paula ten Hope, Richard Thatcher, Romi-Jean Martin

LLB Students: Advanced Property Law (Expropriation) Seminar