2018 Agbiz Congress - Restoration of dignity is key to land reform

Published: 11/07/2018

"Agbiz input with regard to land reform so far was primarily viewed from a commercial perspective, thus the creation of successful and viable new entrants. This is only one part of the story. The restoration of dignity is also key to the debate, but how does one do this practically?" Theo Boshoff, Agbiz head of Legal Intelligence discussed the current policy environment for land reform and the relevant legislation at the 2018 Agbiz Congress and said that Agbiz is closely involved in many land reform forums.


"Agbiz input with regard to land reform so far was primarily viewed from a commercial perspective, thus the creation of successful and viable new entrants. This is only one part of the story. The restoration of dignity is key to the debate, but how does one do this practically?" Theo Boshoff, Agbiz head of Legal Intelligence discussed the current policy environment for land reform and the relevant legislation at the 2018 Agbiz Congress and said that Agbiz is closely involved in many land reform forums.

Agbiz’s view is that conditional ownership is the best method to restore dignity. "Property rights must be the focus as it is not only about money or assets. Land reform is also about self-determination, economic freedom and pride," he said.

According to Boshoff the uncertainty about land reform policy may create opportunities for agriculture and agribusinesses to craft their own transformation actions. "There may be no amendment to the Constitution. It is, however, very clear that change must come soon. The pressure is not merely political. There are legitimate expectations that have gone unfulfilled for a very long time. The land reform policy space is pried wide open and there may be opportunities for agribusinesses to drive their own transformation agendas."

Boshoff pointed out that partnerships such as BBBEE deals have two distinct advantages over a passive approach whereby one waits for government to set the policy environment. It will enable participants to negotiate the terms of the deals and they will be able to choose their own partners.

Boshoff discussed Agbiz's alternative to land reform. Among others, it contains the following elements:

  • Different mechanisms are needed to address urban, rural-social and rural-commercial land reform.
  • The social housing need is very pressing and must receive urgent attention.
  • Well located land is expensive, but expropriation without compensation is not needed to make it affordable. Proactive spatial planning could be used to reduce competition for well-located land with lucrative development.
  • As far as rural land is concerned, the land reform budget must be split between pro-poor policies in rural areas, where the state must lead, and transforming the commercial sector on a public-private partnership basis.
  • Incentivised public/private partnerships are needed to transform the commercial sector. 
  • The land reform budget must be realigned to make more effective use of the budget available for land reform. The Banking Associaiton of South Africa (BASA) and Agbiz believe that commercial financing can be unlocked to transform the commercial sector if provision is made for the correct incentives. Public sector money must be used to leverage private capital through, for instance, interest subsidies and other blended finance arrangements. This will be in line with the National Development Plan’s goal to accelerate land reform without distorting land markets or business confidence. 
  • The highly under-utilised state land could be redistributed at minimal cost to address the pressing human settlement needs.
  • Smallholder farmer development around the immediate vicinity of rural towns, specifically on municipal and state land around them should receive attention. It will, however, be vital to reserve these areas for this use through zonation and spatial planning instruments.

Evidence-based decision-making
"In the short term we need experts from the state and private sector to thrash out the land audit and arrive at figures that are agreed upon. In the medium term the Deed's Office must be moved to a digital platform and the overlay with water and mining rights, for example, must be rectified," Boshoff said.

He also said that there are glaring deficiencies in the legislative framework that must receive attention, especially in relation to the criteria for land redistribution, communal land tenure and institutional arrangements where interested parties can access recourse without excessive legal fees. The most prominent contribution that the agribusiness sector can make is to incorporate land beneficiaries into the formal economy.