ZUMA'S RADICAL ECONOMIC TRANSFORMATION AGENDA TARGETS PROPERTY RIGHTS

According to business rights watchdog AfriBusiness South Africans should not confuse radical economic transformation with real economic growth. The latter leads to increased productivity, while radical economic transformation entails the aggressive redistribution of assets.

According to AfriBusiness CEO Cornelius Jansen van Rensburg, government is in the process of imposing a comprehensive policy framework to facilitate radical economic transformation.

One of the instruments which will be used to this end is the National Development Plan (NDP). The NDP is regarded by many as an economy-friendly policy, but this is not the case. "The proposed limitations on property rights, undermining of the rule of law and crowding out the private and civil sectors are enough reasons for grave concern about the NDP," Jansen van Rensburg said.

Government policy is the minimum indicator for government intervention in the economy. Should the proposals on land reform in the NDP be implemented, for example, the legal precedent would be set for redistribution of other property by the state.

"In order to evaluate the true impact of the NDP, we have to look deeper than its superficial growth-friendly appearance," Jansen van Rensburg said. "Closer reading reveals disconcerting violations of property rights and a radical economic transformation agenda, with supporting policy which will not encourage growth."

On Tuesday, 3 June AfriBusiness will host a property rights conference where property rights in South Africa will be discussed. A campaign for the protection of property rights will also be launched.

Statement issued by Cornelius Jansen van Rensburg, CEO of AfriSake/AfriBusiness, May 26 2014

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