While restrictions on land ownership will not affect urban or residential land, in its present form, the Regulation of Land Holdings Bill could affect foreign-owned game farms.
The bill raised alarm when President Jacob Zuma suggested in his State of the Nation Address that foreigners would not be able to own land in South Africa.
The announcement caused nation-wide concern that foreign investment would be harmed, but Rural Development and Land Reform Minister, Gugile Nkwinti, clarified in a media briefing this week that long-term land leasing would only apply to agricultural land and not urban or residential foreign-owned land.
In its present form, the bill restricts foreign ownership of land and suggests that land that is currently foreign-owned will be converted to long term leases.When asked if the restrictions on foreign ownership of agricultural land applied to private game reserves, Mtobeli Mxotwa, Spokesperson for the Department of Rural Development and Land Reform told Tourism Update private game reserves and game lodges are part of the rural landscape and as such, form part of agricultural land.
According to Mxotwa, land larger than 12 000 hectare will be bought by the State for redistribution to landless people, and this will apply to foreign and national land owners, in accordance with the new bill.
Earlier this month, Martin Jansen van Vuuren, Director at Grant Thornton in the Cape told Tourism Update http://www.tourismupdate.co.za/home/Detail?articleId=29747 that restrictions on land size would have an impact on investments in game reserves and that foreign investors may decide to invest somewhere else where it is less complex.
Joop Demes, CEO of Pam Golding Hospitality, also suggested it could affect investment “I see the ceiling of 12 000 hectares as a serious stumble block which will, without a doubt, slow down Foreign Direct Investment,” he said. “However, I disagree that the proposal to disallow foreigners from owning land in South Africa will deter prospective game reserve investors and see them investing in other African countries instead. The reason for this is that many of the competing African countries have lease legislations in place, including Botswana, Zimbabwe, Mozambique, Zambia and Kenya.”
