EWC expands state power over individuals

President Cyril Ramaphosa’s signing of the Expropriation Act threatens South Africans’ economic freedom and their rights.

Secure property rights are crucial to economic freedom. It gives domestic and foreign investors the assurance that their investment in infrastructure and labour will be safe from government overreach, which allows them to create jobs for South Africans who are then able to provide for their families.

This cycle of prosperity has been placed in grave danger.

In his Opening of Parliament speech in July 2024, the President said that “the provision of title deeds provides people with the assets they can use to improve their economic position”.

The latest Economic Freedom of the World Index, published by the Fraser Institute, scores South Africa at 6.78 out of 10 on property rights. Not only will the signing of the Expropriation Act negatively affect South Africa’s place on the Index, but it will also impede the lives of ordinary South Africans of all races who crave the freedom to find jobs, own their own home, become entrepreneurs, start businesses and pursue other activities that stand to improve their socio-economic status.

South Africa’s growing and successful informal economy – worth an estimated R1 trillion – is an example of the economic freedom that the government should be working towards, instead of placing legislative barriers in front of investment, economic freedom and social mobility.

Says IRR researcher Chris Patterson: “By the stroke of a pen, the President has single-handedly destroyed the hopes of millions of future jobseekers, homeowners, entrepreneurs and business owners and their dreams of prosperity.”

The government has used its power to imperil the freedom of millions of South Africans. Countries like Venezuela and Zimbabwe are stark reminders of what happens to a society when property rights are destroyed and freedoms eroded.

Visit the IRR’s website at www.irr.org.za to support its fight for property rights.

Media contact: Chris Patterson, IRR Researcher Tel: 063 682 5035 Email: chrisp@irr.org.za

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