Land reform is crucial

THE COVID-19 crisis has demonstrated the vulnerability of the livelihoods of many South Africans and highlighted food insecurity as one key aspect. Many now argue that reducing the vulnerability of the livelihoods of the poor, and associated food insecurity, must become a key focus of policy.

Some assert that structural reform, tackling these problems at their root, is required more urgently than before. Land reform has this potential. It is, in any case, a political necessity. If successful, it could play a significant role in reducing the vulnerability and food insecurity of the rural population, who are one third of the population, as well as some urban residents. Enhancing employment is one key thrust of propoor land reform.

Land reform since the end of apartheid in 1994 has had many difficulties, and progress has been slow. A recent study commissioned by the government and funded by the European Union, and conducted by experts from different institutions, with me as the leader, focused on the potential contribution of redistributive land reform to employment creation.

The key questions addressed in the study were: can land redistribution be undertaken in a manner that creates jobs? If so, through which commodity mix and what kinds of farming systems, operating at what scales? And what is the potential of small-scale farming in particular?

Despite its many limitations, the study breaks new ground by investigating the potential for employment creation in specific locations, focused on specific commodities and building on local knowledge.

The study revealed a considerable, unmet demand for land by both smallholders and small-scale commercial farmers. The study found that land reform can assist in creating more employment-intensive farming systems by: reducing the size of farming units, while increasing their total numbers; changing the mix and scale of farm commodities produced; and changing farming systems so that they become more employment-intensive.

A number of assumptions informed the study. “Employment” included both employment by others and self-employment. Potential gains are calculated in terms of net jobs – the total new jobs created after deducting the number of jobs “displaced” through redistribution of the land on which existing farms are located. These are estimated as “full time equivalents” – a job was assumed to involve working a 40 hour week.

In estimating net job gains, the study assumes that 50% of the land under large-scale farming at present will be redistributed to small-scale black farmers. This illustrates the order of magnitude of potential impacts on employment.

When South Africa eventually emerges from the fog of the Covid19 crisis, structural reform, including land reform, will be high on the political agenda as never before. A key question is: will policy makers be ready to grasp the nettle of farm scale, and promote the large-scale redistribution of land to small-scale producers?

Land reform since the end of apartheid in 1994 has encountered many difficulties, and progress has been slow.