In a significant milestone for land reform in South Africa, a recent report has revealed that nearly a quarter of the farmland previously owned by white landowners under apartheid has been restored or redistributed to black South Africans.
This comes 31 years after the end of apartheid, raising both hope and concern regarding the future of land use and productivity in a transformed agricultural landscape.
The Bureau for Food and Agricultural Policy’s (BFAP) comprehensive publication titled Agriculture in South Africa in the democratic era: 1994-2024: A statistical compendium, released this week, delves deep into a re-evaluated agricultural sector indicative of macroeconomic and policy shifts since 1994.
Notably, the 1993 census estimated South Africa’s total farmland at 97 million hectares, with 77.5 million hectares reportedly in agricultural usage.
According to the report, efforts regarding land reform — encompassing restitution, redistribution, and tenure reform— have shown promising outcomes.
Specifically, it highlights that 4.46 million hectares of land have been restored to previous owners, while 2.97 million hectares have been compensated financially.
In addition, government-assisted redistribution through the SLAG (Settlement/Land Acquisition Grant) and LRAD (Land Redistribution for Agricultural Development) programmes accounted for 6.48 million hectares.
When factoring private transactions and government acquisitions, the total of restored and redistributed farmland reaches approximately 19.2 million hectares, amounting to 24.8% of all freehold farmland in South Africa.
However, as Peter Setou, chief executive of the Vumelana Advisory Fund, points out, this statistical progress is tempered by stark realities on the ground.
“While there are pockets of success,” he says, “most of the restored land parcels remain either under-utilised or unproductive.”
He says several projects have collapsed post-settlement and many former employees lost their jobs due to the transfers, calling to attention the inadequacies in support systems for beneficiaries.
Setou highlighted the complex landscape facing land reform efforts, citing insufficient post-settlement support, poor coordination among government departments, and challenging access to markets as critical obstacles.
He remarked that “this is, in a sense, a missed opportunity in terms of creating jobs and contributing to the growth of the economy” and stressed the need for improved access to finance to turn land into viable economic assets.
The Vumelana Advisory Fund has been actively working since 2012 to create partnerships that put restored land into productive use, having attracted over R1 billion in private investment, thus placing 72,000 hectares into agriculture.
Setou emphasised the necessity for the government to foster an environment conducive to private sector collaboration in land reform, which has proven vital for sustainable outcomes.
“Partnerships are critical for sustainable land reform,” he stated, underscoring the role of innovative financial solutions.
"While land acquisition remains a focal point for many, we must balance it with ensuring continued productivity of acquired land," he urged. This call includes advocating for development-oriented credit systems as well as strategic resource allocation to assist land reform beneficiaries to navigate their challenges effectively.
As the report continues to shine a light on ongoing land redistribution efforts, it becomes increasingly evident that the conversation must shift towards enhancing the productivity of restored land. The South African government is thus urged to facilitate new measures for sustainable growth, support, and innovation in financing as it navigates the complexities of land reform amid a changing socio-economic landscape.