IMF says South Africa should spell out land reform plans to remove uncertainty

12th June 2018 By: Reuters

IMF says South Africa should spell out land reform plans to remove uncertainty

Photo by: Reuters

The International Monetary Fund (IMF) said on Tuesday that the South African government should clearly articulate its land reform plans in order to lift uncertainty weighing on investor sentiment.

South Africa's ruling African National Congress has said it plans to redistribute land without compensation to address racial inequalities that persist more than two decades after the end of apartheid. Government critics have expressed concern that those plans could infringe on property rights.

The IMF, which recently completed a mission to South Africa, added in its statement on Tuesday that the government's stated priorities of strengthening governance and promoting employment presented an opportunity to accelerate economic growth momentum.

The IMF currently forecasts that the South African economy will grow 1.5% this year.