Klaus Deininger together with other WB Colleagues who put this conference together
Various Participants coming from different parts of the world.
Introduction
Let me express my heart felt appreciation for WB inviting me to participate at this conference.
South Africa has a long association with the WB, dating even before the advent of our democracy in 1994.
Between 1951 & 1966 the WB funded the expansion of the rail & harbour systems in SA.
WB resumed activities in SA in 1991, with economic policy advice & capacity building. Some of the WB supported projects include the ff;
Industrial Competitiveness & Job Creation Project
Municipal Financial Management Technical Assistance Project
SA – Lesotho Highlands Water Project
Institutional Development Fund and Information for Development Program
Global Environmental Facility
Introduction cont….
Since 1999 SA an WB have agreed on a country Assistance Strategy (CAS) focusing on Knowledge Sharing, rather than Lending. The review of CAS has led to the Country Partnership Strategy (CPS) whose objective is :
Supporting national growth and development programme
knowledge and technical support for the regional development agenda.
Key projects are currently municipal development and land reform.
The WB made an input in the development of our current land policy. WB continues to interact with us as we implement and review our policy. We agree on some of the issues but we also strongly disagree on some.
Introduction cont…
In 1994, the Government of South Africa inherited one of the worst racially skewed land distributions in the world: whites owned 87 percent and blacks 13 percent of agricultural land, this despite the fact that Blacks constitute about 80% of the population.
The new democratic government responded proactively to the cry of the 6 million victims of racial land dispossession by coming up with the South African Land Policy which has three land reform programmes, namely, Restitution, Redistribution and Land Tenure Reform.
The new Constitution; among others, recognised that; “ public interest includes the nation’s commitment to land reform, and to reforms to bring about equitable access to all South Africa’s natural resources
APARTHEID LEGACY:LAND DISPOSSESSION
The Land Act of 1913
Foundation for racial segregation of land ownership
Redistribution aims to provide the disadvantaged and the poor with access to land for residential and productive purposes. Its scope includes the urban and rural very poor, labour tenants, farm workers as well as new entrants to agriculture (87:13% the White: Black land ownership ratio debate). Target is to redistribute 30% of agricultural land by 2014.
Land Restitution covers cases of forced removals which took place after 1913. They are being dealt with by a Land Claims Court and Commission on Restitution of Land Rights established under the Restitution of Land Rights Act, 22 of 1994 (redress).79 696 land claim forms were lodged by the cut off date of 31 Dec 1998.
Land Tenure reform is being addressed through a review of present land policy, administration and legislation to improve the tenure security of all South Africans and to accommodate diverse forms of land tenure, including types of communal tenure (ownership).
Total land surface 122 million hectares
86 million agricultural land
24.3 million State Land
16 million is other land (cities, rocks, rivers, dams)
30% of 86 200 000 ha/ agric land = 25.86 million hectares to be redistributed by 2014
Estimated 30% Agric Land in SA
Land use patterns
LAND PRICES
Urban residential
smallest proportions of land use (1.1%) but significant number of landowners.
segment of the market have increased at a rate below the average inflation rate while prices at the high end of the market increased more or less in line with inflation. Residential property prices of the middle-market have recorded substantial increases in real terms.
FACTORS that have contributed to the significant increases in property prices of middle-category houses are:
relatively low interest rates, higher disposable income of middle-income earners partly due to tax relief, increased
demand by an expanding black middle class, and
increased demand by foreign buyers partly due the weakening of the Rand in 2000 and 2001.
Commercial and industrial properties (0.2%)
Price increases in commercial and industrial properties have been around 10 per cent per annum.
Agriculture
Price increases in agriculture properties have been between 10 and 25 per cent per in 2002 and 2003.
LAND DELIVERED SINCE 1994
POLICY DIRECTIVES
LAND SUMMIT 2005:
http://land.pwv.gov.za/Land-Summit
taking stock of progress made in meeting the land reform imperatives of the:
Freedom Charter, 1955; “The land shall be shared among those who live on and work it”.
the Rural Development Programme (RDP) policy framework document, 1994; underlined the importance of land reform.
the White Paper on South African Land Policy, 1997, argued for a just, equitable and fair land reform programme
the Constitution of the Republic of South Africa, 1996 (Act No. 108 of 1996)., chapter 25, protects property rights, accepts land rights as human rights included in the bill of rights, confirms that land reform is in the public interest. Allows expropriation for land reform purposes as in the public interest.
Compensation at Expropriation {s25 (3) }
“The amount of the compensation, time and manner of payment must be just and equitable, reflecting an equitable balance between the public interest and the interests of those affected, consider:
the history of the acquisition and use of the property;
the market value of the property;
the extent of direct state investment and subsidy in the acquisition and beneficial capital improvement of the property; and
the purpose of expropriation”
Thus no “land grabs”
Directives of the Land Summit
Review of the willing buyer-willing seller (WBWS) principle
the market-driven approach to land reform was singled out as the major obstacle to accelerated land delivery for land reform purposes
A new trajectory towards 2014
focus on the poor, women, disabled, youth, workers on commercial farms
Restructure the dominant models of land use and agricultural production
Decentralization of land and agrarian reform, participatory and people-centred methods which are area based and included in the Integrated and development plans of local and district municipalities
Promote sustainable development
Leading role of the state
Conduct land audit
Scrap restrictions on sub-division of agricultural land
Use of expropriation of targeted land in line with the rule of law
Technical and financial support to Smaller producers.
Greater regulation of land market to control rapid increase to land prices.
Land tax for those who own too much land
Regulating ownership of land by foreigners
Regulating land use management to optimize social benefit
Better co-ordination across government to support land reform.
Greater investment and better co-ordination of settlement support
Partnerships and decentralized reform
Partnerships and decentralized reform
Local government to factor land and agrarian reform into economic development priorities
Partnerships at all levels to adress unequal relationships (empowerment, capacity & financial resources)
Security of tenure and rights of people living and working on commercial farms
Deal with illegal evictions & continued displacement of people living on farms
Deal with illegal occupations and ‘squatter farming”
PROGRESS: POLICY DIRECTIVES
WILLING BUYER WILLING SELLER PRINCIPLE –Review
there should be State intervention in the land markets to stabilise land prices and speed up land reform.
towards a MENU of land acquisition measures to accelerate land delivery:
Affirmation and Continued Use of the Willing Buyer-Willing Seller Principle as contemplated in the White Paper on South African Land Policy
Affirmation and Continued Use of the Current Expropriation Measures and the Design of the New Expropriation Mechanisms
Use of the Pro-Active Acquisition of Land Strategy (PLAS)
Better Articulation of the Land Demand via the Area Based Planning (ABP)
The Design and Implementation of a Land Tax Regime
Review completed –report submitted to Minister then Cabinet for approval and publishing for public comment
POLICY ON LAND OWNERSHIP BY FOREIGNERS (PLOF)
POLICY ON LAND OWNERSHIP BY FOREIGNERS (PLOF)
Report and recommendations by a panel of experts and consultation with various stakeholders
Some recommendations:
Compulsory Disclosure of Nationality, Race and Gender and other information
Special Ministerial Approval-be introduced for certain changes in land use in general and for disposal of certain categories of land
shortcomings in the registration of deeds justify an amendment to the statutory requirements regarding nationality and citizenship not only for foreign individual owners, but also for corporate owners
Regulate ownership of land by foreigners, in line with international practice.
Final inputs received by 14 December 2007 from public consultation process and currently consolidating the inputs
Priorities for New Dispensation
Economic Growth & Stability
Job Creation
Poverty Alleviation
Transformation
The Land and Agrarian Reform Project (LARP)
LARP was submitted and accepted by the Presidency, as no 7 of the 24 Presidential Apex of Priorities
LARP was submitted and accepted by the Presidency, as no 7 of the 24 Presidential Apex of Priorities
LARP Objectives are:
Redistribute 5 million hectares of white-owned agricultural land to 10 000 new agricultural producers.
Increase Black entrepreneurs in the agribusiness industry by 10 %.
Provide universal access to agricultural support services to the above target groups.
Increase agricultural production by 10-15% for the target groups, under the LETSEMA-ILIMA Campaign Increase agricultural trade by 10-15% for the target groups.
will directly contribute to the overall goals of the Agricultural Sector Plan, namely participation, global competitiveness and sustainability, and the White Paper on South African Land Policy
LARPkey principles to fast-track land and agrarian reform:
LARPkey principles to fast-track land and agrarian reform:
Focus areas to concentrate service delivery in order to better exploit synergies between land redistribution, agricultural production and agri-business development;
Aligned comprehensive support package to cater for the inherently multi-sectoral requirements to make sustainable agricultural production and agri-business development a success;
Cooperative government by establishing joint planning, budgeting, approval and implementation procedures between various government departments and programmes;
Subsidiarity: Thedecentralisation of decision-making and implementation to the lowest possible level depending on the specific program activity; and
Utilisation of partnershipsin order to exploit the relative strengths and capacities of the key non-governmental stakeholders; and
Individual project success and sustainabilitywill be the measure of success.
LARP Focus areas:
LARP Focus areas:
Agricultural development corridors Location of large concentrations of farm dwellers
Areas of high farm dweller eviction rates. Farm dwellers ( +/-3 million) are a first priority, given the urgent need for them to fully realise their constitutional rights
Comprehensive individual project plans including support, identified markets and monitoring
Development of agricultural villages in response to identified accommodation needs and opportunities for farm dwellers.
Settlement and Implementation Support (SIS) Strategy
Settlement and Implementation Support (SIS) Strategy
REVIEW OF THE LAND REDISTRIBUTION FOR AGRICULTURAL DEVELOPMENT (LRAD) 2003, current review in process
MONITORING AND EVALUATING THE QUALITY OF LIFE OF LAND REFORM BENEFICIARIES: 2005/2006 (4th study since 1994)
ASSESSMENT OF STATUS QUO OF SETTLED LAND CLAIMS WITH A DEVELOPMENTAL COMPONENT 2005
SETTLEMENT SUPPORT INFORMATION MANAGEMENT –RESTITUTION ONGOING
LRAD REVIEW
Highlights for DLA
progress in terms of delivery (more flexible grant system and decentralization of project approval to the Provincial level)
Reaching an appropriate mix of beneficiaries: majority of grants goes to the poor,
Significant share of the grants is now reaching emerging farmers. And women and youth receive 35 and 22 percent of grants, respectively.
THE QUALITY OF LIFE
Highlights for DLA
Improvement in performance and impact
The rate of delivery has increased;
targeting of the most poor has taken place;
both agricultural and non-agricultural production is occurring;
services delivery to land reform beneficiaries seems better than to the rural population as a whole; and
less evidence of institutional problems.
STATUS QUO OF SETTLED LAND CLAIMS
Highlights for DLA
positive relationship between the level of involvement of government departments and other agencies in projects and the level of attainment of developmental aims
Strategic partnerships enhance the projects to attain sustainability.
RESTITUTION SETTLEMENT SUPPORT
Highlights for DLA
On 90% of the projects other government departments are involved in project support
1 108 permanent jobs created, 2 725 temporary jobs and 475 people who are currently benefiting in terms of training.
IMPROVING THE IMPACT OF LAND REFORM
POLICY
Review on the relative importance of land reform for “livelihoods” as compared to productive projects
economic success is not the only objective currently pursued under the land reform programme
Reduce procedures, adapting them to the specific target and integrating them into a decentralised and participatory process
more flexibility policy framework
more flexibility policy framework
project characteristics appear to be more important determinants of success than beneficiary attributes, suggests that policy has an important impact on whether or not land reform in South Africa can realise its economic potential.
approach that links asset redistribution to improved economic opportunities.
Align the land market with the Government’s land reform strategy.
policy guidelines to substantially increase the rate of sub-divisions within and outside the land reform programme. South Africa’s land market needs to cease biasing against smallholdings.
Governance
Governance
integrated delivery, both with regard to the various land reform programmes (Restitution, LTA, ESTA and LRAD) as well as the provision of the non-land components and services (e.g. agricultural support services, housing etc).
link more explicitly to the other programmes initiated under the RDP; pensions and housing, Provincial and Local level planning, Integrated Development Planning
further decentralize and strengthen integration with other departments and key stakeholders outside of Government
Beneficiaries: appropriate training; managing projects, technical training in terms of project specifics, mentors and strategic partners to build capacity, conflict resolution, resource mobilization, marketing etc.
Government Department: training and capacity building activities pertaining to land reform in the various departments and municipalities
CATA Story Uplifting : Eastern Cape
420 household became victims of “betterment planning”
Became successful claimants & decided to use their restitution award for their own development
Projects included : Agriculture, infrastructure, forestry, education and rural livelihoods (local economic development)
Outputs: Community centre, School Classrooms, Wattle plantation, water for food project, irrigation scheme, museum, Heritage trail
Results included:
Households without income dropped from 43% to 4%
Employment rates increased from 4% to 26% (2001 to 2007)
People with education less than G7 dropped fro 50% to 35%
Use of Electricty increased from 3% to 51%
99% of community have two meals a day.
For further details contact ; Mr Ashley Westaway, Border Rural Committee (Land NGO) East London South Africa. Phone +27437420173 Email: ashley@brc21.co.za
CHALLENGES IN LAND REFORM
Group/Collective Production does not yield the desired results as often groups have to deal with group dynamics and conflicts. Decline in agricultural production may have a negative effect on economic growth
The spatial planning of apartheid left the victims of land dispossession in homeland rural towns where they are locked up in less than a quarter of a hectare per rural homesteads, consequently the interest and commitment to agriculture was heavily eroded, Agricultural skills have been lost, urban life promises jobs and better opportunities hence a growing trend of urbanisation.
National Spatial Development Plan supports existing urban development centres at the expense of rural areas
Challenges Cont….
Challenges Cont….
The dichotomy of community vs. private ownership, social vs. economic practices of land use and subsistence vs. commercial farming are all a challenge to the implementation of land reform. Most financial institutions including the commercial banks, the Land Bank, Industrial Development Corporation (IDC), etc are focusing on privately owned land with individual land use. Their support and after-care to clients does not adopt a developmental approach (to cover needs of the new Landowners).
Sector Challenges
Challenges cont…
Challenges cont…
The issue of exorbitant land prices is a serious challenge affecting not only restitution but also other land reform programmes. Land prices have varied between US$ 64/ha to US$ 7142 /ha, the average price being US$ 471 /ha. This is making land reform quite expensive.
The aggravating factors include the purchase of strategic tracks of land by foreigners, especially in the coastal areas of KZN, Eastern Cape and Western Cape as well as in Mpumalanga and Limpopo. Most of such land is used for game parks, golf courses, eco-tourism and private homes.
Challenges Cont…
Challenges Cont…
Protracted negotiations and Disputes with land owners (validity of land claims and/ or land prices)
Unavailability of land in urban areas
Traditional leader conflict ito jurisdiction and boundaries and between CPA and Traditional Leaders, issues about who is the rightful traditional leader, given the apartheid distortions of chieftainship
Family disputes and disputes amongst community members
The issue of funding land reform in the country is critical, particularly in the light of increasing land prices, under-utilized farm land , absentee land lordism, increasing demand for land.
Reduced poverty & inequalities in land & enterprise ownership
Improved farming efficiency
Improved national household security
Stable and safe rural communities, reduced levels of crime & violence, sustained rural development
Improved investor confidence, leading to increased domestic foreign investment in agriculture
Pride and dignity in agriculture as an occupation & sector of choice.
KEY STRATEGIC PARTNERS
Strategic Partners for Partnership
Organized Agriculture (Unions, including all sectors)
Emerging Farmers
Food Growers
Farm Workers and Farm dwellers
Government (esp. DoA, DLA, DTI, SARS, DPLG, SAPS, PDA, Municipalities)
Women and Youth Groups in Agriculture
Financial Institutions (Land Bank, ABSA, Sanlam, DBSA etc)
Research Institutions (ARC, OBP, Universities, HSRC, CSIR )
Marketing & Trade Organisations (NAMC, WTO, etc)
Enabling Environment : Partnership
Identify sector needs that may unite the sector
Agree to disagree on specific issues
Agree on strategy to address the needs & differences
Regular focus sessions to be on the same page (shared understanding and approach)
Reviews and assessment
Support to Ministerial Advisory Council
Conclusion
Dialogue and Negotiations led to the SA miracle
The Implementation of Land and Agrarian Reform and the Agricultural Sector Plan are the test for successful partnership in the agriculture sector in SA.
Collective effort from both the Government and the sector Partners will take us where we want to go as the country.
We have many opportunities for all of us, we must simply learn to work together in the spirit and letter of the new democratic SA
Let me thank all those who have made constructive inputs which took us to where we are today.
As we implement & review our land and agrarian reform policies and legislation we are keen to learn from other countries who have been on this road.
NEVER AGAIN
In the words of Nelson Mandela
“Never, never and never again shall it be that this beautiful land will again experience the oppression of one by another”.
