Lagarde shares ideas on land expropriation with Ramaphosa

International Monetary Fund (IMF) managing director Christine Lagarde has shared a few ideas with President Cyril Ramaphosa on how to make the principle of land expropriation without compensation "well accepted" despite the "difficulty" those who would eventually have to relinquish land would have to face.

Lagarde was responding to a question at a media briefing at the SA Reserve Bank (SARB) on Wednesday afternoon. She did not, however, say what these ideas on land reform without compensation were that she and her team had shared with Ramaphosa.

She said she had discussed the principle of land expropriation without compensation with Ramaphosa during a previous meeting. She said Ramaphosa had in the past explained to her the context of such a need in SA and the constitutional process used.

"We appreciate the cost-benefit analysis brought to bear to assist this process," she said.

Earlier on Wednesday, Lagarde met with Ramaphosa in Pretoria, ahead of her meeting with SARB governor Lesetja Kganyago. Lagarde is in SA as part of her annual tour of African countries.

Kganyago said during the media briefing that he had "a good exchange of views" with Lagarde on the global and local economy. He added that the two of them also had a good discussion with Ramaphosa on the reforms being implemented in SA.

According to Lagarde, she raised three issues with Ramaphosa, namely addressing youth unemployment, optimising public spending and ensuring competition to eliminate bottle necks and enable lower prices.

"I have not been back to SA for five years. President Ramaphosa invited me the last time we met, and I think this is the right time for me to have come here again," she said.

She described her latest discussions with Ramaphosa as "excellent".

"I have always been enthused with President Ramaphosa's focus on governance and growth. Challenges ahead notably include unemployment among youth; the need to increase growth, and to unleash the potential of the youth," she said.

"I am confident that President Ramaphosa has his eyes on the right objectives. The IMF can provide support, including technical support in the area of optimising public spending to really make sure the public purse is used for the best possible purpose."

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