Aug 10, 2012
Forceful land acquisitions not in SA’s future if government increases efficiencyBack
Agriculture|Engineering|Expertise|Natal|Africa|Defence|SECURITY|System|Training|Water|Africa|South Africa|Zimbabwe|Institute Of Poverty|Equipment|Food|Food Security|Maintenance|Services|Eastern Cape|Ben Cousins|Gugile Nkwinti|Eastern Cape
© Reuse this
Further, he notes that, of the land that has been transferred, some has not previously been used to produce food.
“Given that there is massive concentration in the farming sector – the top 25% of farmers produce 75% of South Africa’s produce – government could easily achieve its land reform target without negatively influencing commercial production in any way,” says Cousins.
Government wants to transfer 30% of the estimated 82-million hectares of agricultural land that is owned by white commercial farmers to black farmers by 2014. The transferred land will represent 24.5-million hectares.
To date, government has redistributed nearly 8% of the 30% targeted white-owned land and resolved 90% of urban restitution claims through cash compensation.
Land restitution, unlike redistribution is rights-based. Around 3 000 rural land claims, which government would like to resolve through restoration of land and not cash compensation, are still to be settled.
“In my opinion, the 30% target was purely arbitrary. There is no reason why it shouldn’t be 50% or 70% over the longer term. There is also no reason why the agriculture sector cannot stay productive in the face of land reform,” Cousins stresses.
He adds that land reform has, to date, had a minimal impact on the agriculture sector, but acknowledges that it has created uncertainty among commercial farmers about the future.
“Currently, land is being leased to land reform beneficiaries on short-term leases, instead of being transferred in ownership, which means these farmers do not have long-term security.”
He adds that the African National Congress Youth League’s (ANCYL’s) call on government to amend the country’s Constitution and not compensate farmers for land has caused insecurity and uncertainty.
Forceful Land Acquisitions
“I think forceful land acquisition is highly unlikely in South Africa,” he states.
However, he notes that a major contributor to the uncertainty, which he attributes to the emotional responses from farmers and the ANCYL with regard to land reform, is that government does not communicate clearly to the public.
“Government likes to make farmers the scapegoats so they can blame them for the failure of land reform,” says Cousins.
He adds that current public arguments are not about land, but symbolise other issues. “People’s reactions are based on emotion. Not much of the public debate is actually about how to carry out effective land reform.”
Nevertheless, Cousins emphasises that if government keeps moving at its current slow pace, populist politicians might use the situation as an excuse for urging a confiscatory land reform system, similar to that which happened in Zimbabwe.
“I think it is highly unlikely at the moment, but it could become a reality in future; however, I doubt that land occupations similar to the scale on which they have taken place in Zimbabwe, would ever take place in South Africa,” he states.
Government is reviewing its land reform policy and, last year, released a draft Green Paper on Land Reform.
Cousins states that not much clarity has, to date, emerged about the final version of the green paper. “The policy review has been a long-winded process.
“Why the policy process has been so slow is not clear, but it seems like inefficiency by government. Why the land reform process has been so slow is another question,” he states.
The biggest hurdle to land redistribution has been the slow and cumbersome buying of land through the ‘willing buyer, willing seller’ approach. The alternative is proactive land acquisition in areas of both need and opportunity.
“Government has not been an efficient buyer of land, as the Department of Rural Development and Land Reform does not have adequate negotiation skills and is hampered by budget constraints. Government has a small budget for land reform – never more than 1% of its national budget has been allocated for this purpose,” says Cousins.
He stresses that land reform could contribute towards poverty reduction in South Africa. “Even if land reform beneficiaries use the land to produce food only for themselves, it will make a contribution towards alleviating poverty, as food security will be established.”
However, to truly address the roots of rural poverty, agricultural production will have to involve people producing both for the market and for themselves.
Areas where proactive acquisition and concentrated land-buying have worked well include Elliot, in the Eastern Cape, and Besters, in KwaZulu-Natal, where the proportion of farmland transferred quickly reached 20% to 30% of the total in those areas, says Cousins.
He says that, unfortunately, land transfers in these cases, and others, have not been matched by effective support services – a key component of effective land reform.
This is another key issue not adequately addressed in the African National Congress’s land-reform proposals, he points out.
In 2010, Rural Development and Land Reform Minister Gugile Nkwinti reported that 90% of the redistributed farmland was failing to produce food and that government might be forced to repossess the properties if that continued.
Plaas researchers, however, disagree with the Minister’s statement, estimating that only on 50% of redistributed farms there is little production taking place.
The institute admits that although a 50% failure rate is high, it is much less than what government claims.
Plaas states there has been public criticism about what many believe to be the failure of the land reform system.
Government has, therefore, through its recapitalisation and development programme, decided to assist the beneficiaries of redistributed land in keeping it productive.
He stresses that, for proactive acquisition and concentrated land acquisition to work, three enabling conditions are required. The first is the need to equip government officials with the requisite skills and expertise, not only for canny land buying but also for effective spatial planning and agriculture support services.
The second is a budget large enough to transfer land on a significant scale, as well as support its new owners in establishing productive enterprises. Quadrupling the land reform budget, perhaps at the expense of defence, is imminently affordable, he states.
The third – and crucial – condition is sufficient political will to implement large-scale land redistribution.
To ensure land reform’s sustainability, this would have to be a component of and contribute to a wider agrarian reform strategy, which radically reconfigures the highly skewed agrarian structure inherited from apartheid and creates market opportunities for new emerging farmers.
Tenure reform aims to strengthen the rights of people whose land tenure is insecure as a result of discriminatory laws and practices in the past. They include farm workers, labour tenants and rural households living on privately-owned land, as well as people living in the former homelands under the authority of traditional chiefs, he explains.
“Little progress has been made with the tenure reform programme; in fact, farm workers are continually evicted despite government laws and policies. Therefore, this programme must be deemed a failure,” he states.
Engineering Sector Involvement
He adds that the sector can help these beneficiaries by downscaling technology and providing training. More affordable equipment is also needed.
“The shortage of capital to invest in farming hampers successful land reform, which is why bigger machines and larger-scale technology are not necessarily appropriate.
“The available technology is often out of reach for land-reform beneficiaries,” says Cousins.
Training courses about tractor repair and maintenance, equipment repair and maintenance, as well as how to use and repair knapsack sprayers, are desperately needed to assist land reform beneficiaries in cultivating produce and contributing to production in South Africa.
In addition, land reform beneficiaries need support services to gain access to water and irrigation.
“Credit and finance is also an issue and new farmers need to be educated about where the opportunities in the agricultural sector are,” says Cousins.
Edited by: Chanel de Bruyn© Reuse this Comment Guidelines (150 word limit)
Creamer Media Senior Deputy Editor Online
Other Agriculture News
Recent Research Reports
Liquid Fuels 2015: A review of South Africa's liquid fuels sector (PDF Report)
Creamer Media’s Liquid Fuels 2015 Report examines these issues in the context of South Africa’s business environment; oil and gas exploration; fuel pricing; the development of the country’s biofuels industry; the logistics of transporting liquid fuels; and...
Road and Rail 2015: A review of South Africa's road and rail sectors (PDF Report)
Creamer Media’s Road and Rail 2015 report examines South Africa’s road and rail transport system, with particular focus on the size and state of the country’s road and rail infrastructure and network, the funding and maintenance of these respective networks, and...
Defence 2015: A review of South Africa's defence sector (PDF Report)
Creamer Media’s Coal 2015 report examines South Africa’s coal industry with regards to the business environment, the key participants in the sector, local demand, export sales and coal logistics, projects being undertaken by the large and smaller participants in the...
Real Economy Year Book 2015 (PDF Report)
There are very few beacons of hope on South Africa’s economic horizon. Economic growth is weak, unemployment is rising, electricity supply is insufficient to meet demand and/or spur growth, with poor prospects for many of the commodities mined and exported. However,...
Real Economy Insight: Automotive 2015 (PDF Report)
Creamer Media’s Real Economy Year Book comprises separate reports under the banner Real Economy Insight and investigates key developments in the automotive, construction, electricity, road and rail, steel, water, gold, iron-ore and platinum sectors.
Real Economy Insight: Water 2015 (PDF Report)
Creamer Media’s Real Economy Year Book has been divided into individual reports under the banner Real Economy Insight and investigates key developments in the automotive, construction, electricity, road and rail, steel, water, coal, gold, iron-ore and platinum sectors.
This Week's Magazine
At the sixth IQ Business conference held in Sandton last month, a panel of business leaders and academics advocated that business reclaims the initiative to spur growth in South Africa amid fragmented and haphazard political direction. Management consulting firm IQ...
The building industry is an essential component of the South African economy as it contributes about 15% to the gross fixed investment that drives the economy. However, with the country’s economy going through a tough time currently, this, in turn, reflects on the...
The recipients of the 2015 South African National Energy Association (Sanea)/South African National Energy Development Institute Energy (Sanedi) Awards were announced at a ceremony and banquet in Sandton last month. Sanea chairperson Brian Statham named Exxaro CEO...
As South African information technology (IT) firm EOH posted another full year of strong growth, CEO Asher Bohbot, known for his frank words, people-centric management style and stoic humanism, attributed the company’s continued South African and African growth to...
International heavy-equipment engine manufacturer Cummins’ regional distribution centre (RDC) in Woodmead, Gauteng, has halved the average logistics distribution time for clients in Southern Africa and allowed for critical or long-lead stock to be kept closer to...