Cosmos flowers blanket open farm areas. EPA
Cosmos flowers blanket open farm areas. EPA
Cosmos flowers blanket open farm areas. EPA
Cosmos flowers blanket open farm areas. EPA

How South Africa's farms became the battleground for its housing crisis


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Knysna, South Africa |  Fuming motorists could do little but sit and wait until the protestors decided to move. The 150 or so people blockading one of South Africa's busiest roads as they demanded land however, were in no mood to quit.

“We’ve asked and asked and asked. Now it’s time for action,” said Thabo Mbatha, one member of the group gathered on the N2 highway at a suburb outside the town of Knysna, on the south coast of the country.

Like most of his fellow protestors, Mr Mbatha lives in a rented wooden shack, which he built himself two years ago. Previously, home had been a cottage on a nearby farm where he also worked. But the property had been sold and the new owner evicted all the workers.

“I need land to build a house for my family. We need a place to call our own. And the municipality does not hear us when we ask,” Mr Mbatha says.

After about an hour of staring down angry motorists that formed a kilometres-long queue, and following a brief discussion with police, Mr Mbatha and the other protestors retreated, letting traffic flow again. A vague promise from the Knysna municipality to build 200 new homes was secured. But, should this not be honoured soon, the protestors would be back, Mr Mbatha warned.

Protests such as these are now occurring almost daily around the country, and tensions around land occupancy are increasing as the country approaches elections in May. The ruling African National Congress (ANC) has emerged from years of corruption scandals with diminished support from the black majority.

In a bid to re-invigorate its following, the ANC said publicly that it is open to changing the constitution to allow the state to confiscate property without compensating owners. The 57,000 or so mostly white farmers who form the backbone of organised agriculture are especially feeling the pressure. Political groups are pushing for eviction of whites from farms to be replaced by blacks, as was done in Zimbabwe.

In response, many farmers are now evicting workers who they fear may someday claim tenancy rights, says Carmen Louw, spokesperson for Women on Farms, a non-profit that supports agricultural labour rights.

“Whenever there’s talk of a radical change in law, we see an increase in evictions,” Ms Louw says. “Farmers want people off their land before the elections, and before workers can claim permanent occupancy rights.”

Commercial agriculture is one of the largest employers in the country, providing about 625,000 permanent jobs and 305,000 temporary or part-time jobs, government statistics show. Just over one in ten jobs in the country is in farming.

A large number of these workers live along with their families on farms, and are vulnerable to being removed from their homes. Ms Louw says the area around Cape Town is a particular hot spot for evictions right now. The Drakenstein municipality northeast of Cape Town carried out a recent audit based on pending court cases that shows up to 20,000 people face evictions in that area alone in the coming months.

In some cases, evictions are also taking place as farmers segue out of agriculture and into leisure tourism, says Ms Louw. “The old farm worker cottages are being converted into guest accommodation, and farms are being converted into rural holiday stays. Tourism is easier and more predictable than farming.”

Farmers meanwhile, are bracing for possible legal changes that will allow government bureaucrats to order them off their land.

Wandile Sihlobo, chief economist of the Agricultural Business Chamber of South Africa, says farmers themselves are accepting the status quo of whites dominating formal agriculture – and it cannot continue.

“There is a general acknowledgement that land reform has to happen in South Africa,” Mr Sihlobo says. “My sense is that farmers are jittery.”

The government itself is of little help in determining what the future holds. The president of South Africa, Cyril Ramaphosa, is regarded as business-friendly and personally opposed to changing the constitution – a document he helped create in the early 1990s. However, his pronouncements on the land question have been vague, providing little guidance as to just how radically the ANC plans to replace white farmers.

It may be that Mr Ramaphosa is playing for time, political analysts say. A final vote on changing the constitution will only happen after the elections in two months. A solid win for the ANC will strengthen his position in the party, and weaken proponents of changing the constitution to grant the government the right to confiscate land without compensation.

Such uncertainty has not played well with South Africa’s international standing. Last year, US President Donald Trump waded in, sending a late-night tweet in which he said he had asked his Secretary of State to study "land and farm seizures" in South Africa, Reuters reported.

Just last week, the US Deputy Secretary of State John Sullivan was in the country and met with farming groups and land activists, where he acknowledged the difficulty of the land issue.

"Land reform has gotten substantial publicity in the US," Mr Sullivan told journalists in Pretoria. "There was a front-page story on the Sunday New York Times last week. But I think there is some misinformation in the US, the issue is complex and I don't think it translated well across the ocean [or] has been covered with the depth and perspective that is necessary."

For now, radical parties on the left of the ANC continue to push for full confiscation of all private property. One such organisation is Black First Land First (BLF) whose leader, Andile Mgxitama, says nothing less than complete land nationalisation will suffice.

In March, Mr Ngxitama registered as a candidate for the upcoming election, and said his party would not accept whites, whom he called ‘land thieves’ as members of his organisation.

“BLF is going to parliament, and will continue its programme of ending white monopoly capital rule, including the taking back of all land which was stolen by the settler coloniser,” he says.

One of the biggest political opponents to constitutional change is the Democratic Alliance (DA), the official opposition in parliament. Yet the DA mayor of Johannesburg, Herman Mashaba, is essentially pioneering confiscation without compensation – by ordering the seizure of hundreds of slum buildings in the city and handing them to developers.

“My intention is to expropriate buildings where the owners can’t be found and offer them to the private sector, and ask for proposals to turn them into affordable accommodation.”

At least 500 buildings deemed to be abandoned slums are in Mr Mashaba’s sights. He says the city is facing an estimated backlog of 300‚000 housing units. As many as 3‚000 people migrate to the city each month, many from rural South Africa and most of them end up in one of nearly 200 squatter settlements around Johannesburg. Mr Mashaba is applying for court orders to seize buildings in the city and turn them into affordable accommodation.

Mr Mashaba is a self-made millionaire, a self-declared “capitalist crusader” and has even expressed admiration for Mr Trump. In spite of his conservative economics, he has also managed to ally with the far-left Economic Freedom Fighters (EFF), with whom he secured a coalition to win the mayorship from the ANC in 2016.

This alliance has not sat comfortably with everyone in his party the DA, especially as the EFF is the third largest political party in South Africa, and wants full nationalisation of all private property including private homes and farms.

However, he says the cooperation between two organisations that share little in common points the way to reconciling South Africans over the land issue.

“We have the responsibility to make Joburg a city where people can come and invest and I can assure you that we as the multi-party are working on it.”

UAE currency: the story behind the money in your pockets

Mercer, the investment consulting arm of US services company Marsh & McLennan, expects its wealth division to at least double its assets under management (AUM) in the Middle East as wealth in the region continues to grow despite economic headwinds, a company official said.

Mercer Wealth, which globally has $160 billion in AUM, plans to boost its AUM in the region to $2-$3bn in the next 2-3 years from the present $1bn, said Yasir AbuShaban, a Dubai-based principal with Mercer Wealth.

Within the next two to three years, we are looking at reaching $2 to $3 billion as a conservative estimate and we do see an opportunity to do so,” said Mr AbuShaban.

Mercer does not directly make investments, but allocates clients’ money they have discretion to, to professional asset managers. They also provide advice to clients.

“We have buying power. We can negotiate on their (client’s) behalf with asset managers to provide them lower fees than they otherwise would have to get on their own,” he added.

Mercer Wealth’s clients include sovereign wealth funds, family offices, and insurance companies among others.

From its office in Dubai, Mercer also looks after Africa, India and Turkey, where they also see opportunity for growth.

Wealth creation in Middle East and Africa (MEA) grew 8.5 per cent to $8.1 trillion last year from $7.5tn in 2015, higher than last year’s global average of 6 per cent and the second-highest growth in a region after Asia-Pacific which grew 9.9 per cent, according to consultancy Boston Consulting Group (BCG). In the region, where wealth grew just 1.9 per cent in 2015 compared with 2014, a pickup in oil prices has helped in wealth generation.

BCG is forecasting MEA wealth will rise to $12tn by 2021, growing at an annual average of 8 per cent.

Drivers of wealth generation in the region will be split evenly between new wealth creation and growth of performance of existing assets, according to BCG.

Another general trend in the region is clients’ looking for a comprehensive approach to investing, according to Mr AbuShaban.

“Institutional investors or some of the families are seeing a slowdown in the available capital they have to invest and in that sense they are looking at optimizing the way they manage their portfolios and making sure they are not investing haphazardly and different parts of their investment are working together,” said Mr AbuShaban.

Some clients also have a higher appetite for risk, given the low interest-rate environment that does not provide enough yield for some institutional investors. These clients are keen to invest in illiquid assets, such as private equity and infrastructure.

“What we have seen is a desire for higher returns in what has been a low-return environment specifically in various fixed income or bonds,” he said.

“In this environment, we have seen a de facto increase in the risk that clients are taking in things like illiquid investments, private equity investments, infrastructure and private debt, those kind of investments were higher illiquidity results in incrementally higher returns.”

The Abu Dhabi Investment Authority, one of the largest sovereign wealth funds, said in its 2016 report that has gradually increased its exposure in direct private equity and private credit transactions, mainly in Asian markets and especially in China and India. The authority’s private equity department focused on structured equities owing to “their defensive characteristics.”

Defence review at a glance

• Increase defence spending to 2.5% of GDP by 2027 but given “turbulent times it may be necessary to go faster”

• Prioritise a shift towards working with AI and autonomous systems

• Invest in the resilience of military space systems.

• Number of active reserves should be increased by 20%

• More F-35 fighter jets required in the next decade

• New “hybrid Navy” with AUKUS submarines and autonomous vessels

Indoor Cricket World Cup

Venue Insportz, Dubai, September 16-23

UAE squad Saqib Nazir (captain), Aaqib Malik, Fahad Al Hashmi, Isuru Umesh, Nadir Hussain, Sachin Talwar, Nashwan Nasir, Prashath Kumara, Ramveer Rai, Sameer Nayyak, Umar Shah, Vikrant Shetty

What are the GCSE grade equivalents?
 
  • Grade 9 = above an A*
  • Grade 8 = between grades A* and A
  • Grade 7 = grade A
  • Grade 6 = just above a grade B
  • Grade 5 = between grades B and C
  • Grade 4 = grade C
  • Grade 3 = between grades D and E
  • Grade 2 = between grades E and F
  • Grade 1 = between grades F and G
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What vitamins do we know are beneficial for living in the UAE

Vitamin D: Highly relevant in the UAE due to limited sun exposure; supports bone health, immunity and mood.Vitamin B12: Important for nerve health and energy production, especially for vegetarians, vegans and individuals with absorption issues.Iron: Useful only when deficiency or anaemia is confirmed; helps reduce fatigue and support immunity.Omega-3 (EPA/DHA): Supports heart health and reduces inflammation, especially for those who consume little fish.

Changing visa rules

For decades the UAE has granted two and three year visas to foreign workers, tied to their current employer. Now that's changing.

Last year, the UAE cabinet also approved providing 10-year visas to foreigners with investments in the UAE of at least Dh10 million, if non-real estate assets account for at least 60 per cent of the total. Investors can bring their spouses and children into the country.

It also approved five-year residency to owners of UAE real estate worth at least 5 million dirhams.

The government also said that leading academics, medical doctors, scientists, engineers and star students would be eligible for similar long-term visas, without the need for financial investments in the country.

The first batch - 20 finalists for the Mohammed bin Rashid Medal for Scientific Distinction.- were awarded in January and more are expected to follow.

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Brief scoreline:

Liverpool 5

Keita 1', Mane 23', 66', Salah 45' 1, 83'

Huddersfield 0