Summary: to allow for land expropriation to be

Summary:

The news article published on News24 on the 21st December
2017 – is about the ANC wanting to amend the constitution to allow
for land expropriation to be allowed, without any compensation on the
party who the land will be taken from. Agri Sa has warned the ANC
that this would contribute to a reduction in foreign investors in the
agricultural sector. The ANC believes that the land expropriation
law, would not impact agricultural holdings or the production
associated to it. Agri Sa and other leading analysts believe
otherwise.

Point
of View on Article:

The ANC is looking to amend the constitution to allow for individuals
to lay claim to agricultural lands that belong to farmers as a means
to promote growth and development in the specific industry. But they
are not looking at the long term effect, that the parties that may be
laying claim to said land – might not have the necessary knowledge
or expertise that is required to work the agricultural lands or the
processes required to make it remain profitable.

Also, not allowing for compensation to the parties who purchased the
agricultural holdings and giving away the land without any sale will
result in the original owners having to reduce the value of the
assets that they own. Also leading to a decrease in production of
products and our skilled farmers relocating to other countries as
they have no means to provide for their families. Foreign investors
could end up feeling threatened by the changes and pull out their
investments, which could also cause farmers to close down their
farms. As they would not have the necessary funds to maintain or run
the farms.

Impact
on Short Term Insurance Providers:

This would impact insurers negatively as the current farmers owning
the property, as well as the assets associated to the agricultural
holding – would need to start canceling their policies or reducing
them in size. As they would not be able to afford the cover or won’t
own the assets.

This will cause a reduction in the amount of money short term
insurance providers would be able to generate from the clients.

Alternatively, if we lose the old clients and replace them with newer
ones. In the same industry, they may not know the in’s and out’s
associated to it and could end up claiming more – which would
result in short term insurance providers having to pay out more on
claims.

Investors pulling out of the economy – could also end up pulling
their investments from the insurers (stocks etc) which would result
in a plumet in value for the insurer and could result in them having
to close down branches, and reducing jobs to try balance overheads
and to remain profitable.

Impact
on my Career Path:

With an increase in farmers selling or losing their assets, they
would in turn reduce or cancel their cover. Which would impact my
performance as it would mean that I would be dealing with more
clients that I cannot retain.

The positive would be that short term providers would create more
positions to help with the generating of business for the new owners
of the agricultural holdings.