South Africa’s Ramaphosa assures Moody’s on land reform

South African President Cyril Ramaphosa told ratings agency Moody’s on Wednesday that a drive to expropriate land without compensation would be done in a way that would not harm the economy or food security, the presidency said on Wednesday.

Land ownership remains a highly emotional subject more than two decades after apartheid’s demise. Now the ruling African National Congress (ANC) is aiming to change the constitution to allow white-owned property to be taken without payment, for redistribution to landless blacks.

Ramaphosa also told Moody’s that failure to create jobs was the biggest threat to the South African economy, the presidency said in a statement.

South Africa has a jobless rate of over 25 percent and remains scarred by glaring income and ownership disparities that run mostly along racial lines, fuelling social unrest.

“President Ramaphosa reaffirmed that accelerated land reform will unfold within a clear legal framework and without negatively affecting economic growth, agricultural production and food security,” the presidency said.

Moody’s will announce its latest outlook on South Africa on March 23; it is now the only major ratings agency that has kept South Africa’s credit rating at investment grade. S&P and Fitch cut their ratings to sub-investment grade last year, after then-president Jacob Zuma fired Pravin Gordhan as finance minister.