The expropriation of land without compensation in South Africa: A strategy for alleviating or worsening poverty?

Increasing calls to amend Section 25 of the South African Constitution which promotes that land may be expropriated without compensation has drawn global attention. The driving factor behind the increasing rhetoric of land expropriation without compensation is the assumption that the majority of black South Africans are living below the poverty line, mainly because they do not have access to land. This chapter seeks to understand if the expropriation of land without compensation will lead to poverty alleviation within the black community or rather it will have an adverse effect by worsening of poverty and economic conditions of black South Africans. The findings of the study reveal that although implementing the strategy may give the poor access to land, in the long run' it will have a detrimental effect on economic growth' addtionally' commercial farmers are heavily indebted to commercial banks, owing them billions' hence expropriating land with compensation will significantly effect the balance sheet of commercial banks and the economy at large. The failure of Venezuela and Zimbabwe to alleviate poverty through land expropriation raises questions regarding the success rate for such a policy and its suitability to South Africa' especially considering the country's current economic direction.