The Department of Rural Development and Land Reform speeds up land redistribution in South Africa

T HE time to accelerate the pace of land reform in South Africa has arrived. Government is pushing ahead with clear determination and steadfast commitment toward the complete transformation of the land reform and rural development landscape in our country. Over the past 21 years of democracy, gains have been made but these have not fully translated into the envisaged vision of vibrant, equitable and sustainable rural communities. Now the Department of Rural Development aims to reverse the legacies of the past colonial and apartheid land policies to ensure the majority of previously marginalized South Africans reap the dividends of democracy. This year the Department will pass laws and implement policies that are designed to undo the injustices of the past with a view to the restoration of land ownership and beneficiation for communities. On the 20th of March this year, the Department hosted a Land Reform Indaba. This gathering was a consultative engagement with the relevant stakeholders to solicit inputs on the implementation of the policy on Strengthening the Relative Rights of People Working the Land (50/50), the establishment of District Land Committee and Agri-Parks, and Land Ceilings. Fifty pilot projects have been identified across provinces. Organised agriculture has been proactive in coming up with proposals. Farm workers will benefit from the 50% of the farming enterprise on a sliding scale. According to Minister of Rural Development and Land Reform Mr Gugile Nkwiti, the class of black commercial farmers was deliberately and systematically destroyed by the 1913 Natives Land Act and re-enforced by other subsequent pieces of legislation enacted by successive Colonial and apartheid regimes. It is now incumbent upon this democratically elected government to undo these wrongs for the benefit, not only of our present society but for generations come. Set on undoing the past wrongs, the Government’s land restitution policy of 1994 had targeted to redistribute 30% of the 82 million hectares of agricultural land under white-ownership to previously disadvantaged individuals by 2014 however meeting this target has proved to be challenging. It became clear that a multipronged approach is needed to speed up the pace of land reform and redistribution. The Department and government had over the years received many complaints from South Africans whose rights in land were taken through racially discriminatory laws of the previous regime, while others had experienced the degrading and often brutal implementation of forced removals. In response and as part of efforts toward healing the psychological wounds of forced removal and dispossession of land government re-opened the land claims process from July 2015 until 2019. This has afforded many black South Africans a chance to reclaim the land which was forcefully and in many instances violently taken from them through the 1913 natives land act and other racially discriminatory laws. The response thus far has been overwhelming. More than 55 973 claims have been lodged with the Commission on Restitution of Land Rights. Government is pleased that so many of our people have come forward to stake their claims.

Agri-Parks: A New Future

The roll-out of Agri-Parks into 27 priority districts is set to change the rural landscape in South Africa, and usher in rural economic transformation. The R2bn Agri-Parks is a response to President Jacob Zuma’s 9-Point-Plan for radical economic transformation and job creation. The Agri-Parks will see increased farming production, development of small holder farmers, agro-processing, marketing of produce and ensure revival of a class of black commercial farmers. “This is in line with our mission to decrease poverty and to create decent work and sustainable livelihoods in rural areas,” says Rural Development and Land Reform Director-General Mdu Shabane. “This will stimulate the participation of black farmers in the entire agriculture value chain,” added Mr Shabane, adding that there was a direct link between Agri-Parks and small town

economic revitalization programme. It is the first time that South Africa has put emphasis and made this approach in achieving rural development. “This is a new future for rural economic transformation model,” said Mr Shabane. A comprehensive district-wide, end-to-end, multi-stakeholder cooperative enterprise, to accomplish profitable participation by previously marginalized communities in the multi value chains associated with high-volume/specialized activities in agriculture. Agri-Parks further facilitate and support the development of local agricultural economies that are community driven thus meeting basic human needs as its driver, ensuring on and off-farm infrastructure development and contributing to the emergence of rural industrialists as well as credit financial sectors that are driven by small (micro) and medium enterprise village markets. The establishment of Agri-Parks is aimed at utilizing existing state land and communal land which has agricultural potential in all the provinces. It will also focus on creating equal access to markets for farmers within the various projects favoring emerging farmers and cluster communities. This will in turn encourage the development of a class black farmers with regards to technical expertise, ability to supply the market, sustainability, and at the desired market quality. Over the next ten-years, Agri-Parks will encourage community development through profits reinvested in the community through an Investment Financing Facility. Emerging black farmers are encouraged to participate in supplying the Agri-Parks. Private commercial farmers are also urged to participate in Agri-Parks, as this will create lucrative investments. All Agri-Parks should be based on economic advantages and have all elements of the value chain for dominant products in a particular area. Furthermore, Agri-Parks will be driven (subsidized) by the state for ten years. It is envisaged that there will be one Mega Agri-Park per district and they will be in the control of farmers. The selection process for determining the exact location for these Mega Agri-Parks was based on a number of factors in consultation with the provincial departments and District Municipalities. Farms, which are state owned will be used to catalyse this initiative Agri-Parks form part of the Comprehensive Rural Development Programme (CRDP), and development of Agri-Villages. Ultimately, the implementation of Agri-Parks (Agri-Parks) will lay foundation for rural industrialization. It is expected to test intergovernmental cooperation, concludes Mr Shabane, as Agri-Parks cannot succeed without synergy in all three tiers of government.

Strengthening the Relative Rights of People Working the Land (50/50)

At the Land Reform Indaba of March 2015 delegates from organized agriculture, farming communities, civil society organisations and government the 50/50 policy was debated extensively. The 50/50 policy proposal focuses on a joint ownership arrangement between farmers and farmworkers. Delegates all pledged their support for the policy with many presenting proposed variations to the policy. In terms of this policy, farm workers will own a percentage of up to 50 percent of the farm on which they work and the historical owners would retain 50 percent. The allocation of ownership percentages to farm workers will be determined by the number of years they have contributed in the development of the farm. As an example, if a farm worker has worked on a farm for ten consecutive years and has made a contribution to the growth of the farm, the worker would be entitled to a 10% stake in the farm. The premise is that the ownership percentages would increase with the number of the years the farm worker has been employed on the farm. Minister Nkwinti says government wants workers to be coowners who share dividends, not wages. The Department’s position is clear, that that Land re-distribution has a direct link to the alleviation of unemployment, poverty and inequality in South Africa particularly in rural areas. Minister Nkwinti is of the view that the 50/50 policy proposal will not only bring about stability within in the agricultural sector but will also improve food production and in turn ensure food security.

Regulation of Land Holdings

The Regulation of land Holdings Framework which includes a provision that will prohibit the ownership of agricultural land by foreign nationals was announced during the State of the Nation Address earlier this year. In terms of the proposed legislation foreign Nationals will however be allowed to hold agricultural land in long term leasehold for a minimum period of 30 years. This is not only to safeguard the national interests but to also ensure the country’s agricultural land remains in the hands of South Africans. This cap however excludes residential property. In other words foreign nationals will be allowed to purchase residential properties in South Africa. The setting of land ceilings at a maximum of 12 000 hectares is set to be implemented through the Regulation of Land Holdings Bill which will be sent to cabinet for approval later this year. Through this bill, no individual will own agricultural land in excess of 12000 hectares amongst other land reform proposals aimed at making land ownership more equitable. The issue of land ceilings has been debated extensively with some sections of the agricultural sector expressing reservations about the need for such limitation. Placing a limit on the amount of land that can be owned by an individual is among others aimed at ensuring wider and equitable distribution of the country’s land resources. It is also part of efforts to ensure no single individual or company owns vast tracts of agricultural land. In addition to this, the Land Holdings Bill will make provision to compulsory land holding disclosures and establishing an information database with regard to race, gender, nationality, size and use of land.

District Land Reform Committees (DLRC)

District Land Reform Committees (DLRC) were introduced to further enhance the implementation of land reform and growing the agriculture sector and bare testimony to Government’s seriousness in addressing historical exclusions to land and equitable access to land. The DLRC will ensure dialogue with agricultural land stakeholders, the commercial farming sector, agriculture departments and the community to address challenges that slow down the pace and scale of land acquisition identification, costing and the optimal utilization of land. The DLRC will increase cooperation and partnership between all related stakeholders thus contributing to the growth of the agricultural sector and skills development in the sector. The DRDLR and supported by Government is confident that the DLRC is an approach that will further address issues of speeding up the land reform process and most importantly help address South Africa’s poverty issues particularly in rural areas. Government will ensure that DLRC are established in all district municipalities around the country. Government is confident that all the afore mentioned initiatives and in partnership with the necessary departments, land reform and redistribution will be sped up thus benefiting many who were previously disadvantaged. Agricultural Land ownership is the key to the reduction of poverty and unemployment in South Africa.