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South Africa: incidence on groundnut sector of new law to ban foreigners from owning land

  • South Africa: incidence on groundnut sector of new law to ban foreigners from owning land

    by Market Insider

    Wednesday, 18 Feb. 2015

    In his State of the Nation address of February 12th, President Jacob Zuma announced a new Land Holdings Bill which will restrict land ownership by foreign nationals. If the controversial bill is passed, foreign nationals will be classed as non-citizens and will be unable to own land in South Africa. They will be restricted to long-term leases of between 30 and 50 years.

    The reforms are said to be aimed at addressing "the need to secure our limited land for food security and address the land injustice of more than 300 years of colonialism and apartheid". Land ownership for "any individual" is envisaged to be limited to 12,000 hectares per person, the equivalent of two farms, and the government would purchase and 'redistribute'  any land in excess of the limit.

    According to latest USDA/Gain report, assuming normal weather conditions the South African groundnut production in 2014/15 could reach 113,000 tons.  The crop is cultivated on about 60,000 ha, with an average yield of 1.9 tons/ha. Many of the owners of larger-scale groundnut plantations are foreign nationals,

    The groundnut sector development is likely to be adversely affected if the law barring foreign nationals from buying real estate in the country under sweeping land reforms are approved by the Cabinet.

    Sources:http://www.reuters.com/article/2015/02/17/us-safrica-land-idUSKBN0LL0PM20150217, http://www.thesouthafrican.com/foreigners-banned-from-owning-land-in-south-africa-says-zuma,http://gain.fas.usda.gov/Recent%20GAIN%20Publications/Oilseeds%20and%20Products%20Annual_Pretoria_South%20Africa%20-%20Republic%20of_3-31-2014.pdf

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