(Ecofin Agency) - In South Africa, the price of arable lands dropped by 32% since December 2017 when the ruling party adopted a resolution authorizing white-men-owned lands’ expropriation without compensation and their redistribution to the poor and black majority.

In July 2018, the average price per hectare was R9,318 ($613) while in December 2017, it was R13,700, Johann Bornman, president of Agri Development Solutions, said quoting figures from the deeds registry according to a news published by Bloomberg.

Indeed, 24 years after the apartheid, about 73% of the most productive arable lands are still owned by white men. This decision initiated by ANC increased investors’ concerns and, they estimate that uncompensated lands expropriation constitutes a clear breach of property rights.  

Some critics also make a connection with the catastrophic land reform initiated in Zimbabwe and others think that the ANC initiated the reform just to gain popularity before 2019 elections.