In this video by CGTN Africa Sumitra Nydoo takes a look at the Banking Association of South Africa who has warned of a possible banking crisis if land expropriation without compensation takes effect. While the association has acknowledged that going ahead with the policy is legitimate and important for transformation, it is worried about the impact such a move will have on the economy. South Africa makes up such a small portion of the world economy that its a simple decision for investors to go elsewhere.
The banking sector who has loaned approximately 30 billion dollars to farmers is panicking. The state owned ‘land bank of South Africa’ is also heavy in debt and white farmers hold 95% of the bank’s loan disbursement.
South Africa Today – South Africa Media