Latest on Land Reform John Purchase Standard Bank Young Farmers Imbizo 25 April 2013
NAREG Process Green Paper for Land Reform released for Public Comment Gazetted and 60 day period for comment National Reference Group established, and Agbiz part thereof 6 NAREG Workstreams established for consultation: - Group 1: Land Management Committee (LMC) - Group 2: Land Rights Management Board (LRMB) - Group 3: Office of the Valuer General (OVG) - Group 4: 3-Tier Land Tenure System - Group 5: Communal Tenure - Group 6: Legislation Considerable interaction over past 18 months Critical NAREG meeting: 15 & 16 February 2013
Green Paper Intro The resolution of the 52nd National Conference of the ANC (December 2007) on agrarian change, land reform and rural development, confirmed the ANC s acute awareness and sensitivity to the centrality of land (the land question) as a fundamental element in the resolution of the race, gender and class contradictions in South Africa. National sovereignty is defined in terms of land. We will fundamentally review the current land tenure system through rigorous engagement with all South Africans, so that we could emerge with a tenure system which should satisfy the aspirations of most, if not all, South Africans, irrespective of race, gender and class.
Green Paper Problem Statement Need to instil national identity, shared citizenship and autonomy-fostering service delivery Rationale behind state investment in land in South Africa is found in the historical background described as accumulation by dispossession. The current economic structure of South Africa continues to produce factors which combine to undermine the creation of conditions which are conducive to fostering social cohesion and development amongst those historically dispossessed of their land.
Green Paper Vision Four-tier system of land tenure, which ensures that all South Africans, particularly rural blacks, have a reasonable access to land with secure rights. Clearly defined property rights, sustained by a fair, equitable and accountable land administration system within an effective judicial and governance system. Secure forms of long-term land tenure for resident non-citizens engaged in appropriate investments Effective land use planning and regulatory systems, e.g SPLUMB
GP: Principles underlying Land Reform (a) De-racialising the rural economy; (b) Democratic and equitable land allocation and use across race, gender and class; and, (c) Sustained production discipline for food security The Goal is to promote social cohesion and development, based on shared growth and prosperity, relative income equality, full employment and cultural progress.
GP: Current Challenges and Weaknesses (a) The land acquisition strategy / willing-buyer willing-seller model (a distorted land market); (b) A fragmented beneficiary support system; (c) beneficiary selection for land redistribution; (d) land administration / governance, especially in communal areas; (e) meeting the 30% redistribution target by 2014; (f) declining agricultural contribution to the GDP; (g) unrelenting increase in rural unemployment; and, (h) a problematic restitution model and its support system (communal property institutions and management)
Specific Objectives of the Green Paper Enable strategic approach to land reform - targeted acquisition of land; Limit the extent of private land tenure; Provide for fair, effective and transparent allocation of land to various land reform beneficiaries; Secure and protect land rights of all citizens, while providing regulated access to land for its productive utilisation by non- South Africans; Enhance land rights and tenure security as well as decongestion within the former homelands;
Specific Objectives of the Green Paper promote efficient and sustainable utilization of agricultural land; improve scope and efficacy of implementing the land restitution programme; ensure transparent, fair, accessible accountable land administration system; enhance the coordinated management of state owned and public lands; and Provide efficient and accessible land dispute resolution mechanisms accessible to the poor.
GP: Land Reform supported by following institutions and programmes: (a) A recapitalisation and development programme; (b) (c) (d) (e) A single land tenure system with four tiers; A Land Management Commission (LMC); A Land Valuer-General (OVG); A Land Rights Management Board (LRMB), with local management committees; (f) Properly aligned common property institutions (CPIs); (g) The Land Tenure Security Bill, 2010.
GP: Single land tenure system with four tiers: (a) (b) (c) State and public land: Leasehold; Privately owned land: Freehold, with limited extent; Land owned by Foreigners: Freehold, but Precarious Tenure, with obligations and conditions to comply with; and, (d) Communally owned land: Communal Tenure, with institutionalised use rights.
NAREG meeting: 15 & 16 February 2013 Policies emanating from consultation process are: 1. Policy on the Office of the Valuer General. 2. Policy on the Land Management Commission, (Questions) 3. Policy on Land Tenure Security and the Land Rights Management Board/Evictions (Questions) 4. Policy on Land Tenure for Foreign Nationals. (Not available) 5. Draft Policy on Restitution (Not available) 6. Draft Policy on Land Ceilings (Not available) 7. Draft Policy on Communal Property Associations (Not available) 8. Draft Policy on State Land (Not available)
NAREG meeting: 15 & 16 February 2013 Other policies that are still at a conceptual stage include the following: Long leases for state land allocations Right of First Refusal (ROFR) District Land Reform Committees (DLRCs) New Workstreams established: - Rural finance - Foreign ownership - Land ceilings - Restitution re-opening - Centenary of 1913 Natives Land Act
NAREG meeting: 15 & 16 February 2013 Concerns emanating from process and meeting: Restitution re-opening and new policy Pre-1913 and open-ended major uncertainty impact Land Management Commission i. Judicial powers ii. Structure iii. Mandate overlap Communal land Status quo approach a problem Freehold land with limited extent Single most major threat to food security - access a major issue Land Rights Management Board and Tenure Security Balance of rights between owner and occupier distorted Foreign ownership Conversion of title deeds to leases major impact Office of Valuer General (Courts must rule) Land Audit (Availability)
NDP Model on Land Reform Chapter 6: An Integrated and Inclusive Rural Economy NPC s proposed model for workable and pragmatic land refvorm based on following principles:
NDP Model on Land Reform Chapter 6: An Integrated and Inclusive Rural Economy NPC s proposed model for workable and pragmatic land reform based on following principles:
NDP Model on Land Reform Chapter 6: An Integrated and Inclusive Rural Economy District land committees stakeholders important Identify 20% of commercial agricultural land in district 50:50 Funding model (? technical team) Protection from uncertainty Stepped programme of financing + new financing instruments
Land Reform success? ~7% of commercial agricultural land transferred through state programmes, e.g. PLAS, Restitution, etc. Significant transfer also through open market, but not measured, yet. Considerable opportunity created for beneficiaries. Post Settlement Support critical various success stories However also failures, especially in restitution cases with CPA s and lack of support Goal: achieve sustainability
Take home message Land Reform necessary, but a complex and emotive issue Considerable policy uncertainty ito targets, timelines, processes to be followed, etc. Already the major investment inhibitor in agric sector. Greater nationalisation, and limited extension of property rights to the poor would be major mistake. Consultation process coming to an end, but uncertainty will probably prevail in the short to medium term.
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