Quo Vadis, South Africa?

Quo Vadis, South Africa?
by Dr. Rolf D Baldus

South Africa has a rich history in wildlife conservation, having brought many species back from the brink of extinction with its unique wildlife ranching model. Studies show direct wildlife expenditure is in excess of R7 billion (nearly $1 billion) per annum, with substantial job creation. However, there is growing concern amongst South African game ranchers that some leading politicians in government circles and parts of the administration not only disregard the great biodiversity and economic achievements of the wildlife sector, but are actively trying to destabilize it. Last year the responsible minister compared game ranching with golf and remarked that they were only the hobby of rich whites. There are statements by government officials that game ranching is not a recognized land use and the land would be better used for growing “mielies (corn) and potatoes”. As such the land should therefore be expropriated for rural development. Such threats came as a shock to game ranchers and their staff and will endanger the credibility of South Africa as a reliable investment partner worldwide. At the same time, they show a lack of knowledge as most of these lands are not suitable for any sustainable form of agriculture or protein production in a viable commercial manner other than the rearing of wildlife.

This spring I have got an offer to co-invest in a game farm in South Africa from my friend there. Price of the land was low compare to Europe, so in the first moment I was quite excited by this opportunity to connect my hobby with putting money in some safer place than shaky banks. But after reading several articles with Mr. Malema and several other high ranking ANC leaders political statements and opinions, I decided to let my money sleep in bank. This bank was in fact technically nationalized last year, but I can still withdraw and cash out my hard made money. I am not sure if Mr. Malema would let me do the same after his land reform he wants to start by seizing farms after the Soccer World Cup. Maybe I miss the investment opportunity of lifetime, would be nice to hear some other opinions especially from inside South Africa.

Thats a bad news for people intending to invest in safari business in this beautiful country ...