He continued: “This latest move is once again believed to be politically motivated ahead of the national elections next year, and is aimed at neutering the political stance of the EFF.”
President Cyril Ramaphosa’s announcement that the ANC will be looking to change the Constitution to more explicitly allow for expropriation of land without compensation has dealt a blow to the economy, Fin24 has reported.
The rand immediately lost 16c against the greenback after Ramaphosa’s announcement in a late-night press briefing.
The local currency opened trade at R13.28 on Wednesday morning from R13.10 just before Ramaphosa started speaking, and “there is a high probability that it will likely weaken further”, according to TreasuryOne head currency dealer Wichard Cilliers.
“If communicated poorly this holds the potential of turning into a game changer depending on how seriously foreigners view this threat to property rights more generally,” he added.
In his announcement, Ramaphosa said it had become “patently clear” that “the people” wanted expropriation without compensation to become “more explicit” in the Constitution, to go beyond the current constitutional provisions for expropriation in the public interest.
He said the party would continue to follow parliamentary processes to change the law with the ultimate aim of increasing agricultural production, people’s access to land and equitable redistribution in a manner that would boost the economy.
He had earlier said this was proof of democracy in action and was the ultimate effect of “what we have fought for”.
Ramaphosa said ANC secretary-general Ace Magashule would be providing further clarity and detail to media on Wednesday on what had been resolved at the party’s two-day lekgotla.