The land reforms to ensure redistribution of land, which is still concentrated in the hands of the white farmers may be dear to political classes in South Africa, particularly the black population. But its implementation is becoming more and more difficult. The resistance to implementing the much-touted policy is coming not alone from the few land rich white populations but also from the mine owners mostly foreign companies the two sectors which contribute considerably to the nation’s economy. South African mines have been registering a slow decline for the last few years thanks to steadily declining commodity prices and rising production costs. This is a difficult situation for the government to act on the redistribution of land. More so, some of the mining giants are threatening to flee if the size of the mining tracts become truncated, the same set of threats being posed by large farmers, who went to the extent of seeking the interference of the US president to prevail upon the political administration of the country to convey the backlash of the land reforms. Not to fall behind, the rating agency Moody’s said that if uncertainty continues, there will be a flight of capital and the decline in investment would be pronounced. South African President Cyril Ramaphosa, who earlier had shown much enthusiasm to implement the much-promised land reform is seemingly in reverse gear. He assured the miners that their property would not be taken away. Land reform, according to him, is to repair the discrimination perpetrated on the blacks for so long through colonization and apartheid. But will it help in changing the political discourse and set right the past sins on the original black community, when 25 years after the fall of the white racist regime, three-quarters of the country’s agricultural land is still in the hands of the white community, which represents only 8% of its 55 million inhabitants.
However, industry experts do not expect a flood of decisions against the mining industry and on the landed gentry. They feel that the government is hamstrung to carry out the reform or redistribution of land. It would not make any economic sense for the government to tighten the redistribution process since it may have an immediate fallout on the production of agricultural and mining sector. Yet, slow down in that process may depreciate the political gains of the current political apparatus, particularly in view of the coming parliamentary elections in May this year. There are many vocal assertions coming from radicals against the lethargy shown by the government in the redistribution of land. Sensing the difficult situation, the government is changing the narratives. During his state of the nation speech recently, President Ramaphosa cautiously stated that the first redistribution operations would target “state-owned plots”, particularly in urban areas, a come down from the earlier stand when the government was on a belligerent stand to walk the talk. The industry is also playing the balls as surmised by the South African Chamber of Mines spokesperson Charmane Russell, who said that the land redistribution should be done in a way that it does not affect investor confidence. Can President Cyril Ramaphosa cut the Gordian knot? Political analysts predict that it would be difficult for him to handle the complex situation. What that is possible at this juncture could be playing political games more tactfully pleasing both and antagonizing neither. Can he do that is the trillion dollar question?
