The SA government is doing all the wrong things. While some other African countries and previously socialist countries are trying to roll out more property rights and attract foreign investment, and hence move their economies in the right direction, the ANC is chasing foreign savings and capital away. Fin24 reports that:
Foreign nationals will no longer be able to own land in South Africa once government’s land policy is finalised and passed into law, Land Reform Minister Gugile Nkwinti said on Tuesday.
“All people who are foreign nationals will not own land, but will lease land on a long-term basis,” he said.
The minister said government had completed an audit of state-owned land, but was still busy with its audit of public and private land.
“Privately-owned land includes land which is owned by foreigners. We are busy auditing all of that land,” he said.
When the audits are complete and government’s policy is promulgated into law then “people who are foreign nationals will not own land, but will lease land on a long-term basis”, said Nkwinti.
At this stage foreign investment inflows to South Africa are a major factor to why the Rand still remains reasonably resilient, why the SARB can keep interest rates as low as they are, and why price inflation has not spiraled even higher.
If the government goes through with this policy, less foreigners will invest their savings here, and the Rand will lose a major crutch. This will escalate high- and hyperinflation risk.
If you are fortunate enough to be earning profits at the moment or have profit prospects in the future, convert those straight into precious metals, because this will get very ugly.