South African farmers are grappling with a looming crisis as Deputy President Paul Mashatile announced plans to expropriate land, leaving original owners responsible for settling bank loans tied to confiscated properties.
Under the new policy, land will be redistributed debt-free to beneficiaries, but farmers must clear mortgages despite losing ownership. This shift, enabled by the 2021 Expropriation Act, has sparked outrage, with many vowing to default on loans.
Adding to the tension, major banks like Absa, Standard Bank, and FNB remain conspicuously silent on the issue, despite potential losses from unpaid debts.
A 2023 South African Reserve Bank study noted a 15% drop in agricultural loan approvals due to expropriation fears. Critics warn of economic parallels to Zimbabwe’s 2000 land seizures, which devastated its agriculture.
As farmers brace for uncertainty, the banking sector’s lack of response fuels growing frustration.
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