Zuma's populist land reform plans likely to backfire

Amid all the smoke and noise in parliament during the State of the Nation speech, President Jacob Zuma's comments on land reform almost slipped under the radar.

But global investors looking for suitable destinations in the developing world in which to grow their money might have zeroed in on his confirmation that the government would enact a law that would prohibit foreigners from owning land in this country.

Comments like this do not help the case for investment, but experienced Africa watchers might have reasoned that Zuma was striking a populist chord in an attempt to stem the bleeding of support from the ANC to the Economic Freedom Fighters. The EFF has made the expropriation of land without compensation a cornerstone of its policies.

Besides, depending on whom you ask, foreigners own between 3% and 5% of arable land in South Africa anyway. And government spin doctors have been at pains this week to clarify that the president does not want to ban foreigners from owning residential property.

But Zuma didn't stop there on Thursday night: he also confirmed that a ceiling of 12000ha would be set on land ownership.

This is a foolhardy policy and a serious threat to investment in agriculture and, ultimately, to our food security. How can big agri-businesses, several of which are listed on the JSE, operate under such strictures? Will the proposed law be applied retroactively?

Zuma also said that a policy proposal to force commercial farmers to cede half their land to their workers would be ''explored'' further.

How can investment in agriculture - designated by the state as a key driver of job creation - be secured when property rights are eroded?

Instead of dabbling in outmoded socialist policies, the government must make available far more resources to revitalise the stalled land reform process, and give proper support, together with organised agriculture, to our new farmers.