LAND REFORM

Lessons regarding Land Reform in the Sugar Industry

April 18, 2023

Presentation to KZN Economic Recovery ConferenceSibayaS J Saunders7 August 2009

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• 47% of S A’s population are rural based citizens.

• The welfare of the country’s rural population is linked to the foundation of the country’s post 1994 stability : a promise to restore equitable land ownership.

• Despite the significant progress made by South Africa over the past 15 years, people living in rural areas continue to face the harshest conditions of poverty.

• Land Reform in the current economic climate needs to be managed with sensitivity to ensure poverty is not exacerbated and commercial agriculture is not undermined

THE CHALLENGE

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• Currently about 17% of commercial sugar cane supplying the SA industry is under black ownership.

• Currently, there are 1 294 white commercial cane growers and 327 (20%) black commercial cane growers in South Africa.

• As at February 2009 approximately 52% of land used to grow commercial sugar cane in South Africa has a land claim against it.

• Only 8% of land claims have been settled.

LAND REFORM : SUGAR INDUSTRY (1)

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• Undertaking a land reform program (both redistribution and restitution) on the scale SA has embarked upon is both challenging and complex.

• It requires stakeholders working towards a shared goal with a common value system.

• It requires the institutions of the State, and commercial agriculture’s role players to work jointly with one another.

LAND REFORM : SUGAR INDUSTRY (2)

Har har! Your end of the boat is sinking!!!

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Agronomic Issues

(A) Ensure the land remains agriculturally productive.

- The productivity of the farming enterprise is not impaired.

- The property continues to be farmed according to accepted husbandry practices –

particularly after valuation and before transfer.

- Farms need to be transferred to new owners prior to the start of the harvesting season (i.e. Jan/Feb/March)

- Cost to re-establish dry land farming R15 000 per hectare.

- 10 000 hectares = R150 million.- Speed of deterioration, despite resilient nature of cane.

KEY PRIORITIES

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(B)Identify areas for redistribution/restitution with the greatest agronomic chances of success.

- Issues include rainfall, soil type and historical yields

- Farm sizes

- “Don’t chase hectares, chase sustainable solutions.”

- The need for “EARLY” colloboration between the state land reform agencies and industry players in identifying suitable land.

KEY PRIORITIES

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• Respect market values – (“Chasing hectares” is skewing land values)

• Respect the restrictions in title deeds – this assists both parties to continue production. (i.e. Cane Supply Agreements)

• Streamline process between gazettement and degazettment

- Willing sellers / non sellers- Use of “compromise/settlement agreements”- Use leases as a mechanism to :

- Ensure land remains agriculturally productive.- Immediate income to communities/individuals.

- Skills transfers – training and development; mentoring.

LAND TRANSFER ISSUES

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• Local milling and grower forums are currently established. They need to be given the responsibility of ensuring redistributed and restituted land is sustainable, with regional governments’ financial support.

• Provision for farming services, procurement, administration, training and development at local forums – already established.

• State provision of capital for ongoing mentoring, training and development – using local forums, through Sugar Industry structures. (Requirement R5 – R10 million per annum).

• State subsidies for Black farmers through SASA training facilities.

SETTLEMENT ISSUES

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• Co-ordinate State Land Redistribution efforts through one office (Land Reform and Land Restitution) – needs.

• Accountability to the Department of Agriculture.• Department of Agriculture must be the responsible organisation

for execution of policy and accountability for pre and post land reform outcomes.

• Appropriate skills need to be assigned in Department of Agriculture – outsource of certain functions to private sector.

• Appropriate state funding institutions need to be aligned and energised to Department of Agriculture’s Land Reform Mandate (Land Bank; Ithala).

• Strong lines of co-ordination with Department of Water Affairs and Department of Transport (Transnet Freight).

• Use of State resources to drive rural development in a co-ordinated fashion.

• Use commercial agriculture and private sector to drive government agenda in meeting its land reform objectives.

INSTITUTIONAL ISSUES

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“We need to empower the poor through land reform.

Our land reform has so far not been linked to rural

development..”

PRESIDENT OF REPUBLIC OF SOUTH AFRICA : Jacob ZumaUniversity of KZN 2008

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