Gordhan defends expropriation without compensation at UK summit

Minister of public enterprises Pravin Gordhan addressed the Financial Times Africa summit held in London on Monday.

During Gordhan’s address, he told those in attendance that “Ramaphosa offers best prospect of turning economy around.”

Gordhan detailed Ramaphosa’s investment drive and also explained that trust in state institutions such as Sars has taken a knock.

“We had one of the best revenue services, built over 10 years… damaged in one year,” he said.

Pravin Gordhan, minister of public enterprises for South Africa, outlines initiatives to create more jobs and increase investment in the country. We're looking to bring $100bn in investment into the country, he tells #FTAfrica.

— Financial Times Live (@ftlive) October 8, 2018

Regarding land, Gordhan defended the ANC’s policy, saying “our priority is still to get people both inside and outside the country to understand that colonialism and apartheid left us with a terrible legacy.”

He stressed that the issue of land needs to be dealt with now or it will continue to hurt the South African economy.

The priority is still to get people both inside and outside the country to understand that colonialism and apartheid left us with a terrible legacy – Pravin Gordhan on #Landreform

At #FTAfrica

— Razia Khan 📚 (@raziakkhan) October 8, 2018

The legacy of apartheid & colonisation still haunts #Africa. If not addressed now, will continue to hurt our economies. Minister Pravin Gordhan attempts to address the #landreform policy by ANC #FTAfrica pic.twitter.com/j56a8GCY2N

— AgnesG (@AgnesGitau) October 8, 2018

Investec’s founding CEO Hendrik du Toit also spoke at the summit, where he was asked a question about business scandals in South Africa.

Hendrik du Toit of @Investec, when pressed about business scandals in South Africa: We need a national prosecuting body, we need strong courts and we need to be harsh on business and government to stamp out corruption. Cooperation could change the face of the country. #FTAfrica

— Financial Times Live (@ftlive) October 8, 2018

“We need a national prosecuting body, we need strong courts and we need to be harsh on business and government to stamp out corruption. Cooperation could change the face of the country,” Du Toit answered.

The legacy of apartheid & colonisation still haunts #Africa. If not addressed now, will continue to hurt our economies. Minister Pravin Gordhan attempts to address the #landreform policy by ANC #FTAfrica pic.twitter.com/j56a8GCY2N

— AgnesG (@AgnesGitau) October 8, 2018

Gordhan appears to be taking cues from president Cyril Ramaphosa on how to present the idea of land expropriation without compensation in a way that would not discourage potential investment in South Africa.

Ramaphosa, speaking to the House of Traditional Leaders at the beginning of the year, said that people should not panic about the fact that the constitution is likely to change to allow land expropriation without compensation.

READ MORE: Land expropriation will not be a ‘smash and grab’ – Ramaphosa

Addressing the recent adoption of the motion brought by the EFF to change section 25 of the constitution to allow for land expropriation without compensation, Ramaphosa adopted a conciliatory tone. The ANC had overwhelmingly supported the motion in the National Assembly, which Ramaphosa described today as a necessary measure to deal with the “original sin” of land having been taken by the colonial and apartheid regimes from black people.

He said this issue needed to be dealt with as a matter of restorative justice, but it would not be done in a damaging way, echoing his words from his state of the nation address.

Land expropriation would not be a “smash and grab” attempt, and much consultation would take place to ensure the process would not harm food production, jobs and the economy as a whole.

Additional reporting by Charles Cilliers

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