President Ramaphosa has betrayed his promise of economic growth − IRR

President Cyril Ramaphosa’s signing the Expropriation Bill into law last week scraps the multi-party promise of economic growth for a rehash of the same old ANC ideas that led the party to its historic defeat in May.

This represents a tragic blow to the millions of South Africans who have taken the President at his word when, time and time again – even as recently as the beginning of last week – he has spoken of the need for South Africa to achieve economic growth, the key to unlocking a better life for all.

Many believed Mr Ramaphosa’s promises on economic growth when his party signed the GNU’s statement of intent. The document lists “[r]apid, inclusive and sustainable economic growth” and “the promotion of fixed capital investment” as the foremost objectives of the new multi-party administration.

However, in signing away the right of all South African citizens to securely own their own property – such as homes, businesses, and farms – Mr Ramaphosa has made a mockery of the fundamental premise of the government he heads. In fact, his assault on property rights is set to rob millions of financial security and the chance to fulfil their socio-economic aspirations. Instead, the Expropriation Act threatens rapid, spreading and sustained poverty.

Says Hermann Pretorius, IRR head of strategic communications: “There is no condemnation of sufficient weight for the President’s fateful decision to sign this horrendous law. His own words show him to be either tragically misguided or deeply dishonest. There is, sadly, no other way of squaring President Ramaphosa’s frequent promise of economic growth with his signing into law of a historically dangerous piece of legislation.”

In February 2024, in his State of the Nation Address to Parliament, the President said that “economic growth is essential to reduce unemployment”. Economic growth is strictly dependent on investment and the ability of ordinary people to earn and own securely through hard and honest work. In signing into law the Expropriation Act, President Ramaphosa has created an insurmountable obstacle to attracting sufficient investment in South Africa, as well as eliminating the ability of South Africans to work and earn the ability to own property securely.

“The President,” says Pretorius, “either knows that property rights are essential to unlocking growth and reducing unemployment, and decided callously to sign the Expropriation Act anyway, having been less than truthful when he said he wished to reduce unemployment. Or, alternatively, the President fails to understand that he was being dishonest when he told the public that achieving economic growth was the mission of his second administration. To avoid being either a fool or a knave, President Ramaphosa must work with all pro-growth parties in government and Parliament to urgently repeal the Expropriation Act before its toxicity spreads across our country and economy.”

The IRR, acting for its members and all South Africans invested in this matter, has initiated legal consultation with a view to challenging the Expropriation Act through whatever means available, including litigation.

Media contact: Hermann Pretorius IRR Head of Strategic Communications Tel: 079 875 4290 Email: hermann@irr.org.za

Media enquiries: Michael Morris Tel: 066 302 1968 Email: michael@irr.org.za