Proposed Policies for Communal Land Tenure Reform Presentation

1. COMMUNAL LAND TENURE REFORM Proposed Policies Presentation By Mr. Mduduzi Shabane The Director General: Department of Rural Development and land Reform 07th JUNE 2013

2. COMMUNAL LAND TENURE POLICY BACKGROUND • The enduring legacy of colonial and apartheid socio-economic and political segregationist policies has resulted in the overcrowding of 15% land surface area of SA known as Communal Land Areas • These traditional Communal Areas are home to some millions of citizens and characterized by overpopulation nonexistent or frequently dilapidated infrastructure, and scarcity of quality agricultural land, environmental degradation, landlessness and land-shortage, land-related conflict.

3. COMMUNAL LAND TENURE POLICY PROBLEM • Problem is compounded by lack of comprehensive policy and legislation that should form the bedrock to drive rural economy transformation • Challenges of land administration in the former homelands that are directly related to the very existence of the homeland system. • Majority of the country’s population was crowded into a miniscule percentage of South Africa’s least arable lands, • Communal Areas denied of public investment in infrastructure, industrial and agricultural development • Distortion of traditional and customary systems in communal areas by colonialism and apartheid • Communal Areas are home to some of the nation’s poorest and underdeveloped communities and highest levels of unemployment, and lowest levels of literacy. • In effect, these problems led to the destruction of the social and economic fabric of these areas.

4. COMMUNAL LAND TENURE POLICY PROBLEM • The Green Paper on Land Reform, 1997 suggested there would be a different process to deal with communal land tenure policy which unfortunately never materialized. THE GREEN PAPER ON LAND REFORM • In August 2011, Cabinet approved the Green Paper on Land Reform. Most fundamental to this Green Paper was its proposed four-tier tenure system that called for: • State and public land with leasehold tenure • Privately owned land: Freehold with limited extent • Land owned by foreign Nationals: Freehold, but precarious tenure with obligations, • Communal owned land: Communal tenure with institutionalized use rights.

5. COMMUNAL LAND TENURE POLICY PROBLEM THE GREEN PAPER ON LAND REFORM…[Continued] The Green Paper also put forward three guiding principles for the land reform policies going forward: • Deracialization of the rural economy; • Democratic and equitable land allocation and use across race, gender and class; • A sustained production discipline for food security. The above four tier tenure system is best illustrated by the following diagram on the Agrarian Transformation Strategy

6. AGRARIANTRANSFORMATION SYSTEM Figure 1 Tenure System Reform • State and Public Land • lease hold • 2. Private Land • Free hold with limited extent • 3.Foreign land ownership • A combination of freehold and leasehold; and, • 4. Communal land • Communal tenure: communal tenure with institutionalised use rights. • 5. Institutions • 5.1 Land Management Commission • 5.2 Valuer General • 5.3 National Rural Youth Service Corps • 5.4 National Development Agency with rural cooperatives financing facility Roads, bridges, energy, water services, sanitation, library, crèches, early childhood centres, Police stations, clinics, houses, small rural towns revitalisation. • LAND: • Tenure system review • Strategic land reform • interventions • Restitution • COMMUNITY: • Social infrastructure • ICT infrastructure • Amenities • Facilities AGRARIAN TRANSFORMATION ‘A rapid and fundamental change in the relations (systems and patterns of ownership and control) of land, livestock, cropping and community.’ • LIVESTOCK: • Economic infrastructure: • Processing plants • Small industries • Abattoirs, animal handling facilities, feed-lots, • mechanising stock water • dams, dip tanks, silos, • windmills, fencing, • harvesters, etc • CROPPING: • Economic infrastructure and • inputs: • Agri-parks, fencing, • seeds, fertilizer, • extension support , • etc • Food Security: • Strategic Partnerships: • Mentoring • Co-management • Share equity • Modalities being worked out between the Dept and farmers; big and small Phase III Phase II Agro-village industries; credit facilities Enterprise development Rural development measurables Phase I Meeting Basic Human Needs VIBRANT, SUSTAINABLE AND EQUITABLE RURAL COMMUNITIES 1

7. GREEN PAPER ON LAND REFORM contd PROBLEM This presentation will focus more on the least developed area of the Green Paper on Land Reform, namely “Communal Land Tenure with institutionalized use rights”. POLICY OBJECTIVES The policy objectives are the following: • Promote rural economy transformation • Strengthen the security of tenure of communal areas to secure the rights and interests of the vulnerable and enable household members to bequeath land to their children. • Clearly define authority and responsibility within the context of transforming the rural economy. • Spatial reconfiguration of communal areas through spatial planning, land use management and spatial development frameworks. • Place the household as a human agency to drive change. • Deliberate community investment interventions through the agrarian transformation strategy to enable them to fully participate in the economy.

8. COMMUNAL LAND TENURE POLICYOUTCOMES Expected Outcomes include, but is not limited to the following: • Strengthened land rights for all Communal Area households, especially those most vulnerable to tenure insecurity (women, youth and the poorest members of society); • Clear, effective and democratic land governance in which households and the state hold authority over land rights on the one hand, and traditional councils take responsibility for fair and equitable management, land use and land-based resources on the other hand; • Active promotion by the State of facilitated social solutions to social problems and the provision of enabling legislation and resources. • Households, as opposed to individuals, are the primary basis for: • communities holding ultimate authority over land, as well as • serving as the foundation (the human agency) for decision-making and substantive quorum rather than the numeric quorum.

9. COMMUNAL LAND TENURE POLICYOUTCOMES CONTINUED……….. • Decongestion of Communal Areas through application of a new developmental approach built upon complementary land redistribution and restitution programmes that broaden access to land beyond the confines of the 13% area. • An institutional reconfiguration of local land administration institutions that further promotes democratic, equitable access to land and its use across gender and class. • Putting measures in place to prevent the loss of land through reckless investment, speculation and other means with the state ultimately reserving the “right of first refusal”. .

10. Figure 2 C O M M U N A L T E N U R E M O D E L Outer Boundary: Single Title Title Holder: Governance Structure. COMMUNALLY OWNED: • Roles: • Title Holder • Adjudication of • disputes on land • allocation and use • Reference Point • Land allocation GRAZING CROPPING * * * COMMUNALLY OWNED: Collective and individual enterprise and industrial sector * 1 2 * * FORESTRY * * * ROYAL HOUSEHOLD * * * * * * • Residential • Economic • Social • Services 3 * TRADITIONAL MANAGEMENT * * * * * * * 7 4 MINING COMMUNITY-PUBLIC-PRIVATE-COLLABORATION 1 – 7 HOUSEHOLD SECTOR: Basic unit of production MANUFACTURING 6 5 TOURISM INFRASTRUCTURE ROLES: TRADITIONAL COUNCIL/ MUNICIPAL COUNCIL / CPA / TRUST PRINCIPLE: COMPLEMENTARITY ACROSS TRADITIONAL & DEMOCRATIC INSTITUTIONS

11. COMMUNAL LAND TENURE POLICYOUTCOMES CONTINUED……….. • Economic transformation engendered through the provision of equitable land rights and fulfillment of associated service functions, duties, the exercise and acknowledgement of authority, and responsibilities by all Communal Area stakeholders:

12. COMMUNAL LAND TENURE POLICYOUTCOMES CONTINUED………..

13. COMMUNAL LAND TENURE POLICYOUTCOMES CONTINUED………..

14. Summary • Redefine and reconstitute the Communal Land Areas through spatial planning and spatial development frameworks • Improved land use regulations and economic policies for sustainable growth • Provide for Land adjudication. • Strengthen the security of tenure of Communal Areas through institutionalized use rights by households • Promote Social Solutions to Social Problems: Structured, informed and facilitated deliberations where necessary. • Enact protective mechanisms to ensure communal residents do not lose land through foreclosure by making provisions for “rights of first refusal” to: • (i) The community in the first instance, and if unable to acquire the land, • (ii) The state on behalf of the community.

15. Summary • Promote Investment opportunities in the interest of the community: • Land will be protected against poor investment decisions. • The community will benefit from a minimum of 51% shares to the investments • For purposes of equitable management, employment and share equity, distinction will be made between those managing for salaries, those working for wages and the overall share equity distribution to all the households when dividends are declared. • Promote community investment models • Institute tenure reform within a developmental approach built upon a land redistribution programme. Measures will be adopted to promote significant productive and social investments into the Communal Areas: • Through a more effectively coordinated and planning programme of public and private investments based on a clearly articulated rural development strategy • A minimum of 51% share equity to the community from corporate investment. • .Enact enabling legislation

16. I THANK YOU