CAPE TOWN – The Institute of Race Relations (IRR) said on Tuesday that the government’s push for expropriation without compensation was making South Africans poorer.
The rand had a nasty reaction to the growth data after breaking through R15 in early trade.
The IRR said in a statement that the economic growth numbers released by Statistics SA (Stats SA) reflected a number of factors including investor fears that the government wished to persist with plans to seize property and not pay for it.
The IRR has led a global and domestic lobby against expropriation without compensation in order to put pressure on the South African government to abandon its expropriation plans.
Stats SA data showed that the economy contracted by 0.7 percent in the second quarter of the year after contracting by 2.6 percent in the first quarter. The sector which saw the biggest decline was agriculture, forestry, and fishing, which declined by nearly 30 percent in the second quarter.