Botswana citizens have expressed mixed feelings about a proposed new law that would not allow foreign nationals to own land in the country.
The debate led by Vice President Slumber Tsogwane and legislators come at a time when the government is sweating over measures aimed at curbing the sale of land to foreigners in large numbers.
As another way of mitigating the effects of selling land to foreign nationals in large numbers, the government through Finance Minister Kenneth Matambo has brought a Bill before Parliament which seeks to amend the Transfer Duty.
The Bill seeks among other things to increase the rates of duty charged for non-citizens should be increased from 5 percent to 30 percent.
But a number of legislators argued that it is still not enough and called for the rates to be above 50 percent.
According to the Bill, in the case of customary land grants, the duty will be calculated on the aggregate rental payable or on the value of the immovable property leased, whichever is greater.
When commenting on the Bill in Parliament, Vice President Slumber Tsogwane slammed a proposal by legislators that Botswana should stop giving full land ownership to foreigners as this sidelines locals in having access to land.
“Should Parliament ever dare to introduce such bombshell piece of legislation, this will lead to a fall in foreign investment, hurt tourism and property industry therefore leading to decline in economy,” warned Tsogwane.
He added that “it is not a good idea to be thinking of introducing a law like that. Such laws will scare the potential investors to our country. It won’t happen let us stick to the 30 percent proposal made by the minister on the Transfer Duty (Amendment) Bill.”
Slumber’s sentiments were shared by the mouthpiece of the business community in the country-Business Botswana which called on the government to remove the amendment to increase the rate of transfer duty on the sale and transfer of property to non-citizens as envisaged by the Transfer Duty Act.
In its petition to Matambo, Business Botswana states that “the potential negative effects on many participants in the economy are substantial, and will far exceed the benefits of any additional tax revenues that may be raised. We therefore strongly recommend that the proposal to increase the rate of transfer duty on the sale and transfer of property to non-citizens from 5 percent to 30 percent be removed from the Bill.”
According to the organisation, the Bill in its current form is “anti-foreigner” as well as “anti-foreign investment” as it sends a negative message to potential investors.
But legislators argued that barring foreigners from owning land in Botswana will not affect the rights of the current foreign land owners as such step should not be seen as a threat to foreign investment.
One of the Legislators, Haskins Nkaigwa said the proposed 30 percent could not any how deter foreigners from buying land or property as government anticipates, calling for a ban.
Nkaigwa argued that it is not all about the investors as suggested by the Vice President but it should be about protecting Botswana citizens who do not have land due to what he termed robust whites monopoly.
“Citizens don’t have access to land because foreigners continue to own large acres of land at the expense of our people. We should negotiate in this sensitive issue, this land belongs to Botswana citizens not the so-called foreign investment,” he argued.
Other legislators shared the same sentiment with Nkaigwa legislator Moiseraelaoya who was against the introduction of a new amendment that will see a 30 percent rise rates paid by foreigners, said “I had the opportunity as the Trade Minister then to be part of the participants under the Direct Foreign Investment Policy strategy wooing foreign investors.”
He added: “The first thing they inquire about is land. The envisaged Act will certainly thwart Government aspirations and dreams open and competitive economy.”
Responding to the concerns of the legislators, Matambo said, “We should guard jealously against our land. Potential investors will certainly buy the land…real potential investors.”
A Botswana citizen Ditiro Koboko said his compatriots were selling land to foreign nationals at an alarming rate of foreigners.
“This is disheartening as they in turn rent the facilities and residence at exorbitant prices to the very persons who sold the land and plots in the first place,” he said. A foreign national who asked to remain anonymous said they should be allowed to buy and own land at a reasonable price.
KO/as/APA