‘Direct threat’: US warns expropriation law could damage SA economy

Cape Town – US Ambassador to South Africa Leo Brent Bozell III has warned that the country’s expropriation without compensation policy could deter investment and damage the economy.

Speaking to the SABC, Bozell said Washington still wants the policy addressed as part of its “Five Asks” for improving relations between the two countries.

“The expropriation without compensation issue is important to us. It would be a direct threat to investment in your country,” Bozell said.

He argued that the policy creates uncertainty for investors who fear their property, factories or businesses could eventually be expropriated without compensation.

Bozell said the United States has temporarily removed the issue from active negotiations while South Africa’s courts consider its constitutionality.

“If the courts were to rule otherwise, the United States is going to say that this will have a chilling effect on investments in your country,” he said.

The ambassador also warned that Washington’s patience with South Africa was running out, saying the consequences of failing to address its concerns would be “necessarily going to be severe”.