FIRST AIRED: December 22, 2017

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00:00:01
>> South African's ruling African national Congress has taken the decision to change the constitution to allow the government to expropriate land without compensation to owners. I'm Ed Stoddard from Reuter's news in Comdry, South Africa. Land remains an emotive issue in South Africa. Two decades after the apartheid rule most commercial farm land in South Africa remains firmly in white hands.
00:00:27
The government claims that only 8% to 10% of farm land has been transferred to black farmers since 1994. Well short of a 30% target that it had hoped to reach by 2014. Some economists disagree with this and say in fact the figure's over 20%, but that's still far short of the government's targets.
00:00:45
And so now the ruling ANC says it must take more drastic measures now to rectify what it says are the wrongs of the colonial past. This can send a very worrying signal to investors, of course, because it might suggest that property rights will not be respected in the long run.
00:01:02
And this could have an unnerving impact on markets. But the ruling party is very divided on this issue. And this presents a bit of a quandary for the newly elected presidents of the ANC, Sou Ramaposa, who is deputy president of the country. He is seen as being generally market friendly and investor friendly.
00:01:21
At the same time, he has the support of unions and other sectors of the ANC's left wing. So he has quite a tightrope to walk in this regard. The broader point here, though, is that many analysts believe that nothing is going to be done any time soon and that this may simply be kicked down the road until Ramaphosa becomes president in 2019.
00:01:43
In the meantime, though, policy uncertainty will continue to reign. And that could also have a dampening impact on investment.