Banks have R180 billion exposure to land as collateral

Because Government has failed… Land expropriation without compensation could be shifting the blame away from the State’s own responsibilities… Most of the land that has been stolen from communities is now owned by the State itself!

Professor Cyril Mbatha, Unisa

Banks have an exposure of R180 billion to land as collateral. If some of that land is expropriated, what happens to that debt? Depositors will lose money and you won’t get investment into the country.

Cas Coovadia, Banking Association of South Africa

The National Assembly has voted in favour of starting a process to amend the Constitution to allow for land expropriation without compensation.

The vote passed after the ANC included amendments that would protect agricultural production and food security.

Arabile Gumede (in for Bruce Whitfield on The Money Show) interviewed Professor Cyril Mbatha of the Unisa Graduate School of Business Leadership.

Mbatha conducted extensive research on how to understand, evaluate and influence efficient progress in South Africa’s land reform process.

Whitfield also spoke to Cas Coovadia, Managing Director at Banking Association of South Africa.

Coovadia explained how banks are looking at the issue of land expropriation without compensation.

Listen to the interviews in the audio below (and/or scroll down for more quotes from it).

The Government has not done well in terms of meeting its targets set at the Land Summit in 2005.

Professor Cyril Mbatha, Unisa

The transfer rate is a problem. Another problem is how the land has been used after it has been transferred.

Professor Cyril Mbatha, Unisa

Townships have been built on land that belonged to communities that have been forcibly removed.

Professor Cyril Mbatha, Unisa

We urge the President to publically clarify what the process is going to be… Let’s do this in a way that won’t bring about negative consequences…

Cas Coovadia, Banking Association of South Africa

There’s no reluctance to work with Government to do this in a sustainable way, so we do address the theft of land…

Cas Coovadia, Banking Association of South Africa

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