Weighing up foreign ownership
25 July 2007
A panel of experts' report on foreign land ownership in South Africa is to be published for public comment, along with a comparative analysis of international best practice, before the government decides how the country should handle the issue.
The Cabinet considered the report, which makes policy recommendations on the regulatation of foreign land ownership in South Africa, at its fortnightly meeting in Pretoria on Tuesday.
The report was commissioned following a surge in local property prices over the past few years, with some blaming foreign buyers for driving up prices.
According to a Cabinet statement, the panel recommended a number of policy options for consideration, including a possible moratorium on the sale of land to foreigners, as well long-term leasing, as opposed to outright sale, of land to foreigners.
It also recommended the "identification of instances in which prohibition of foreign ownership of land could be justified," for example, in the case of national key points, water catchment areas, and land along South Africa's borders.
In other special cases, such as where land was earmarked for land reform, restitution or integrated human settlement, the panel recommended that government approval be a requirement on land sales to foreigners.
The report also recommended compulsory disclosure of foreign buyers' details, in line with South Africa's Financial Intelligence Act.
The Cabinet decided that the report would be published for public comment, "subject to the inclusion of a comparative analysis of how other countries have managed this complex policy matter.
"The final policy will be approved by Cabinet after the public has commented on the report."
Briefing reporters after the meeting, Government spokesman Themba Maseko said the international best practice analysis would facilitate intelligent public debate on the issue.
"Cabinet is saying that if we want intelligent debate in the public out there, we need to let the public know how other countries dealt with this matter," Maseko said.
What the government was seeking to do, he said, was to "put the brakes on this matter while we are still doing research, establishing [the extent and impact of foreign land ownership], to make sure that we do not wake up in 20 years to find that the large bulk of our country is owned by foreigners."
SouthAfrica.info reporter
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