Bringing Black Farmers into commercial agriculture in South Africa

• 15 January 2025
• 0 Comments
• Agbiz
• Wandile Sihlobo

I am starting this year hopeful that South Africa can implement various plans and programmes we have designed over the past few years but never got to implement. In agriculture, nothing is more glaring than the slow release of government-owned land to deserving beneficiaries who can use it optimally.

However, President Cyril Ramaphosa has clarified that he intends to see more land release and agricultural progress. As we start 2025, the Department of Land Reform and Rural Development and the Department of Agriculture must take his words as marching orders.

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 profound statement is at the heart of South Africa's agricultural inclusive growth agenda.

Over time, the South African government has amassed about 2.5 million hectares of land that was never released to beneficiaries with title deeds. These government-owned farms, which are now underutilised, were acquired through the Proactive Land Acquisition Strategy and are in the Government Land Holding Account.

I have interacted with some of the beneficiary black farmers who have told me countless stories of pain and frustration. Their stories centre around the fact that commercialisation is proving difficult. The key to attracting investment and unlocking productivity is the security of tenure. The short-term leases the government provides them 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 corrupt government officials have unceremoniously and illegally removed them from their farms.

Addressing the security of tenure and stopping corrupt activities are key to clearing the pathway to success. My book “A Country of Two Agricultures” offers more specific solutions.

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 the state land to appropriately selected beneficiaries with title deeds should be a starting point.

The speech in July 2024 was not the first time President Ramaphosa had discussed accelerating land reform in South Africa and boosting the farming economy. But it was certainly one of the few times when the need to release state land to beneficiaries was clearly stated.

As we start 2025, we are working to revive the South African economy. The starting point for agriculture should be releasing government land to beneficiaries with title deeds. This will also support the Department of Agriculture's initiatives, such as the Agriculture and Agro-processing Master Plan.

Regarding the "post-settlement support" that the President noted, the beneficiaries of the land would be individuals who could qualify for the Blended Finance Scheme. This Scheme is currently run by the Department of Agriculture, Land Bank, and other financial institutions and agribusinesses.

Regarding skills, commodity associations should also be able to lend support through training when required in some beneficiaries. We can also build on many initiatives, such as SA PALS, SerDev, etc.

President Ramaphosa provided clarity in July 2024 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 great focus and collaboration with relevant departments and stakeholders in the sector, this may be a first step towards addressing South Africa's profound challenge of being "A Country of Two Agricultures".

n  Wandile Sihlobo, email: wandile@agbiz.co.za

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