If South Africa is to see the expansion of the gross value added to agriculture, an increase in black farmers’ share in commercial farming, and a boost in agricultural jobs, transferring state land to appropriately selected beneficiaries, with title deeds, should be the starting point. Photo: Delwyn Verasamy
I am starting this year hopeful that South Africa can implement the various plans and programmes for agriculture we have designed over the past few years but never got to implement. In agriculture, there is no more glaring problem than the slow release of government-owned land to deserving beneficiaries who can use it optimally.
But President Cyril Ramaphosa has clarified that he intends to see more land release and progress in the agricultural sector in the near future. The departments of land reform and rural development and of agriculture must take his words as marching orders as we start 2025.
In his opening of parliament address in July 2024, the president stated: “We will increase funding to land reform, prioritise the transfer of state land and improve post-settlement support by strengthening the institutional capacity of responsible structures.”
This statement is at the heart of South Africa’s agricultural inclusive growth agenda.
Over time, the government has amassed about 2,5 million hectares of land that has never been released to beneficiaries with title deeds. These government-owned farms, which were acquired through the Proactive Land Acquisition Strategy, are underused and are sitting in the government’s Agricultural Land Holding Account.
I have heard countless stories of pain and frustration from beneficiary black farmers. Their stories centre around the fact that commercialisation is proving difficult. The key to attracting investment and unlocking productivity is security of tenure.
The short-term leases the government provides them with are unhelpful in unlocking capital and enabling operations. Getting this right could help promote commercialisation and yield sustainable jobs for communities.
In a few cases where farmers have succeeded, despite the insecure lease arrangements, they have faced bureaucratic hurdles and, at times, cavalier attitudes from government officials. These farmers have shared stories of how they have been unceremoniously and illegally removed from their farms by corrupt government officials.
Clearing the pathway to success entails addressing security of tenure and stopping corrupt activities. I reflected on more specific solutions in the book A Country of Two Agricultures.
If South Africa is to see the expansion of the gross value added to agriculture, an increase in black farmers’ share in commercial farming, and a boost in agricultural jobs, transferring state land to appropriately selected beneficiaries, with title deeds, should be the starting point.
The speech in July 2024 was not the first time Ramaphosa has spoken about accelerating land reform and advancing the farming economy. But it was certainly one of the few times where there was clarity about the need to release state land to beneficiaries.
As we start 2025, we are working to revive the economy. Releasing government land to beneficiaries with title deeds should be the first step for agriculture. The release of the land will also support department of agriculture initiatives, such as the Agriculture and Agro-processing Master Plan.
Regarding the “post-settlement support” that the president mentioned in his speech, the beneficiaries of the land would be individuals who qualify for the Blended Finance Scheme run by the agriculture department, the Land Bank and other financial institutions, and agribusinesses.
Regarding skills, there should also be room for commodity associations to lend support through training when beneficiaries require it. We could also build on many other initiatives, such as Partners in Agri Land Solutions, a private land reform and development initiative, and SerDev, which aims to empower Africa’s farmers through innovation, training and community support.
In his speech, Ramaphosa provided clarity about the government’s policy direction on land reform and agricultural development. The president intends to continue releasing land to black farmers, vital to building an inclusive farming sector.
If done with focus and collaboration with relevant departments and stakeholders in the sector, this could be a first step towards addressing South Africa’s problem of being a country of two agricultures.
Wandile Sihlobo is an agricultural economist.
