President Cyril Ramaphosa’s State of the Nation Address (Sona) delivered on Thursday did not provide any details on how challenges associated with land reform, including funding land provision of post-settlement support for land reform beneficiaries, would be addressed, said non-profit organisation Vumelana Advisory Fund.
Peter Setou, the CEO at Vumelana, said in a press statement on Friday that land reform should remain a priority of the government as it was a fundamental part of the economy and a prerequisite element in addressing South Africa’s history of land dispossession as well as the subsequent challenges that the country faced.
“We have noted the president's positive announcements regarding support for small-scale farmers, including the supply of input vouchers for seeds, fertiliser, and equipment to 140 000 farmers to boost food security and agricultural reform on over 640 000 hectares of land owned by women,” Setou said.
Further, they had noted that 250 000 more vouchers would be distributed to small-scale farmers this year.
“We also note the government’s commitment to addressing regulations that inhibit the cultivation of certain crops to allow outdoor cultivation and harvesting by traditional farmers, which will help boost the rural economy; as will the commitment to improve rural road infrastructure and build bridges to enhance village life.
“However, for land reform to be effective, there is a need for much more resourcing and funding of post-settlement support for land reform beneficiaries.”
But the Vumelana Advisory Fund said the government needed to be intentional in driving a collaborative approach to land reform with beneficiaries of the land reform programme and the private investors, supported by the state, for the country’s land reform programme to attract more investments from the private sector.
The organisation noted the commitment to resolve the energy crises as it impacted on all sectors of the economy. It hoped that the impending Budget speech would provide some pointers on the government’s plans with supporting land reform.
“The conclusion of a social compact involving key stakeholders is supported. This is what is required if we are to address the challenges facing us as a country. Our experience as Vumelana has demonstrated that collaborative approaches can make a huge impact in addressing land reform challenges,” it said.
Agri SA chief executive Christo van der Rheede said earlier that the bigger challenge was the rising cost of capital in the agricultural sector.
Since 2021, the local repo rate had increased by more than 300 basis points.
“The slow pace of transformation in the agricultural sector has little to do with the agri-sector code, but all to do with economic factors.
“More than 5 000 farms in possession of the state are being leased out to farming entities in black hands. However, the majority struggle to farm due to a variety of reasons, but most important of all a lack of money to buy inputs, to build infrastructure and to access markets with quality products,” Van der Rheede said.
He said that the AgriBEE Sector Code was one of few sector-specific broad-based black economic empowerment (B-BBEE) codes of good practice in South Africa.
He said while it could certainly be improved, it was not the charter that was the challenge but the fragmented approach to black farmer development.
“A consolidated approach is required based on sound economic principles and building expertise. It is not land that produces food, but expertise. Without it, land in itself will remain a poverty trap. Unlocking its potential requires experts in agriculture who are resilient, hard-working and business-savvy,” Van der Rheede said.
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