Business Report

Uneven ground: the mixed reality of South African land reform after 32 years

Given Majola|Published

When land reform is effectively implemented, it can be instrumental in reducing poverty, creating jobs, and establishing sustainable livelihoods for the majority of South Africans, especially those residing in rural areas.

Image: Simphiwe Mbokazi

As South Africa marks Freedom Day, land reform has yielded different results for South Africans depending on which side of the spectrum they are on.

The country must accept that for many people, land reform represented restoring the dignity of many South Africans who would otherwise still not dream about addressing the historical injustices of the past, says Peter Setou, the chief executive at Vumelana Advisory Fund.

He adds that it also holds symbolic value for addressing legacies of the past.

“It has, as a result, contributed towards political stability as it gives ordinary people hope that their plight is being addressed. A significant number of claims have been finalised, and vast tracts of land have to date been restored to black South Africans.

"In instances where people chose financial compensation, a lot of people benefited, and such claims were settled expeditiously. It must also be noted that some claims have resulted in significant benefits for land reform beneficiaries.”

Inability to meaningfully and productively use the land

The organisation established to support land reform beneficiary communities says, having said this, there is empirical evidence that a large number of beneficiaries have not been able to meaningfully and productively use their land due to a lack of post-settlement support.

It says that when it is effectively implemented, land reform can be instrumental in reducing poverty, creating jobs and creating sustainable livelihoods for the majority of South Africans, particularly those living in rural areas.

“This would in turn promote inclusive economic participation and allow new owners to be part of the commercial value chains.” 

Unique opportunity to revitalise rural economies

According to Vumelana, successful land reform presents a unique opportunity to revitalise rural economies and mitigate the migration of people from rural areas to cities in search of better economic opportunities.

It says the land reform programme initiatives have the potential to drive rural economic development and create new opportunities for people living in rural areas.

Failure to address known challenges associated with land reform would then exacerbate the situation, with joblessness worsening in rural areas and increased migration to urban areas, creating additional pressure for addressing challenges in urban areas.

“We will not achieve the relevant targets set through the National Development Plan, e.g. that agriculture could create a million jobs by 2030."

The organisation says successful land reform is critical for social cohesion and stability. It warns that failure to implement a sustainable land reform may result in instability within the country as people grow despondent and run out of options.

According to Setou, SA needs to refrain from providing land to people without matching this with other forms of support, such as skill development, access to affordable finance and markets, as well as addressing infrastructure challenges such as roads and electricity, which are crucial for successful businesses in rural areas.

The chief executive says that without all these important ingredients, it is difficult to see how rural economies and land reform can be utilised to drive meaningful social and economic change. 

He says the country needs to reflect on programmes that have worked and expand on these in order to have maximum impact.

“As an example, Vumelana has, since its establishment, supported in excess of 26 community projects which have attracted in excess of R1 billion in private investment into land reform projects. Government should support such proven initiatives and avoid reinventing the wheel.”  

He added that the government has, over time, commissioned several studies and reports to better understand the key constraints and bottlenecks in land reform, including the findings of the High Level Panel, also known as the Motlanthe Report.

“The recommendations contained in these reports must be implemented without any further delay. These include addressing corruption, addressing the lack of capacity within the state to implement programmes and providing post-settlement support to beneficiaries of land reform.” 

According to Vumelana, land reform is not only about correcting historical injustices but also about building a more inclusive and resilient economy. To achieve this, it says South Africa needs to think differently about how it funds and supports land reform.

“With proper support, rural communities can generate income, create employment and strengthen local economies. Lack of structured and robust monitoring and evaluation has contributed to where we find ourselves, as we keep repeating past mistakes.

"We need to have a conversation as a country and agree on realistic and measurable targets on what land reform must achieve over a defined period. We need to rally all the stakeholders behind this comprehensive plan once we have agreed on targets.” 

The organisation says this should be implemented vigorously and monitored on an ongoing basis, and corrective action should be implemented timeously where required.

It says there must be consequence management for failure to deliver or meet the agreed-upon targets.

“This will help us achieve growth in the economy and help create much-needed jobs, particularly in the rural areas.”  

Setou says the government must create an enabling environment and actively promote private sector involvement and support partnerships with the private sector. He says this includes support for organisations that are at the coal face of facilitating these partnerships.

Vumelana says that the government, in conjunction with key stakeholders, must urgently develop innovative ways of funding land reform. It says demand for public resources exceeds available funds, so the government cannot go it alone.

Similarly, all restrictions on access to finance must be addressed, it says.

  • Fast-track the creation of the proposed Land Reform & Development Agency, as announced by the President a few years back, fund it adequately and ensure that we get people with the right skills to run it
  • Urgently address shortcomings identified by the High Level Panel (Motlanthe report), as well as the Presidential Advisory Panel on Land Reform and Agriculture
  • Create an inexpensive process of dealing with disputes related to land reform, and make the recently established Land Court and Land Court of Appeal more accessible and fully funded to be able to discharge their mandate
  • Draw an inclusive plan through which we can gradually bring underutilised land in communal areas and land reform projects into commercial production
  • We need to balance the manner in which land is acquired and used. We are usually fixated with acquiring land, and what happens once the land is transferred remains largely ignored, hence the failure rate we have observed. We need to ensure that there is comprehensive post-settlement support for beneficiaries of land reform. 

Vumelana says beneficiaries must be capacitated and supported to ensure that there is improved compliance and good governance.

“Good governance is a key ingredient to successful land reform and a key contributor to the failure rate. This also leads to mistrust and infighting and may ultimately lead to the destruction of the asset,” it adds. 

In March, the Commission for Gender Equality (CGE) reaffirms that gender rights are human rights, non-negotiable, and central to the dignity and freedom of all.

It said this was as this year’s Human Rights Day Commemoration took place against the backdrop of growing global and local recognition that women’s economic empowerment, particularly in rural and communal settings, remains a cornerstone of substantive equality.

Despite progressive legal frameworks, CGE said many women in SA and across the world continued to face systemic barriers to accessing and controlling land, one of the most critical resources for economic independence and social justice.

According to the RB Property Group, land reform remains a key challenge, but it is also an opportunity. The property investment company said it hopes it will continue to drive land restitution and land reform initiatives to ensure equitable access to land.

“Our goal is to accelerate black economic participation by ensuring that land ownership is accessible to those who have historically been excluded from the process.”

The group says that through strategic partnerships, public-private collaborations, and investment in land-backed assets, it will play a pivotal role in shaping an economy where black South Africans are empowered not just as homeowners but as landowners and property developers.

Independent Media Property