(Ecofin Agency) - On March 17th, 2017, the South African government has revealed in the Government Gazette a bill to prevent foreigners from owning agricultural lands in the country.

Entitled “Regulation of Agricultural Land Holdings Bill”, the bill should, according to Bloomberg, be submitted to the parliament for approval in April.

Though it appears as a mean to tackle the growing issue of land grabs in Africa, the measure seems to bear a political message to those who are against the Zuma government land policy.

Indeed, the government ceases not to multiply the good gestures. Pressured by the opposition, mainly the Economic Freedom Fighters, which is the radical party of ANC led since 2012 by Julius Malema, Jacob Zuma recently, against its party’s opinion, agreed to simplify procedures to expropriate white land owners to the benefit of black people..

The bill also states that foreigners that already own agricultural lands are to provide the State a three month first option on the property before selling it. As for those willing to buy lands, they will be able to apply for lease of averagely long periods.

Many observers are skeptical about the political move. “While President Jacob Zuma has begun to adopt an increasingly populist tone in his discussions of land reform, the policy measures put forward by the ruling African National Congress are likely to remain more moderate. That said, the more left-leaning policy statements will offer continued headwinds to investor sentiment, further undermining growth”, says BMI Research, subsidiary of the rating agency Fitch Ratings.

Souha Touré