AMT AGRI OUTLOOK CONFERENCE 2008 CSIR CONFERENCE CENTRE, PRETORIA 1 – 2 OCTOBER 2008

1. AMT AGRI OUTLOOK CONFERENCE 2008CSIR CONFERENCE CENTRE, PRETORIA1 – 2 OCTOBER 2008 SUSTAINABLE LAND REFORM FOR SOCIO-ECONOMIC GROWTH The world food crisis: how does Land Reform fit into this picture Presented by: ThoziGwanya Director General: Land Affairs

2. GREETINGS • Chairperson, Dr. Herman van Schalkwyk • President of Agri SA, Mr. Lourie Bosman • President of NAFU, Mr. Motsepe Matlala • President of TAU, Mr. Bennie van Zyl • Dr. Frederick van Zyl-Slabbert • Mr. Mike Schussler • Adv. Nichola de Havilland • Dr. John Purchase • Mr. Nick Smit • Mr. Pieter Esterhuysen • Ladies and Gentlemen • All protocol observed Sustainable Land Reform and Socio-Economic Growth

3. INTRODUCTION • Let me thank the organizers for inviting me to yet another very important conference • Since your Conference of 2007 we have had a number new developments including the Land and Agrarian Reform Programme. • these conferences are very important for continued dialogue and consensus on critical issues that affect agriculture and food security. • in this agriculture sector, we must work as a team if we are going to be counted among the nations of the world. Sustainable Land Reform and Socio-Economic Growth

4. INTRODUCTION • Let me emphasize some of the key resolutions that some of us have made, which relate very much to the theme of this conference: • We must accelerate all our programmes in pursuit of the Millennium Development Goals. (economic growth, poverty eradication, skills development, employment, education, water, food security, etc.) • In order to deal effectively with the challenges of human settlements, land acquisition must be accelerated through a dedicated Housing Development Agency. Sustainable Land Reform and Socio-Economic Growth

5. INTRODUCTION • To give effect to these resolutions the Departments of Agriculture and Land Affairs are aligned in several products to ensure sustainable Land and Agrarian Reform in South Africa and in effect addressing food security. • We have reviewed the Land Redistribution for Agricultural Development Grants (LRAD) • We encourage Strategic Private Partnerships • We have implemented the Land and Agrarian Reform Project (LARP) • We are in the process to review several pieces of legislation and policies. Sustainable Land Reform and Socio-Economic Growth

6. INTRODUCTION • We have also signed Memoranda of Agreements with WARD (Women in Agriculture Rural Development) and NAFU (National African Farmers Union) as a way forward on working together in Land and Agrarian Reform. • We will soon sign a Memorandum of Agreement with YARD (Youth in Agriculture Rural Development). Sustainable Land Reform and Socio-Economic Growth

7. SUSTAINABLE LAND AND AGRARIAN REFORM Access to Land, Capital, management, Markets& thus Growth Security, Dignity, Safety Justice, Equity Improved Quality of Life Sustainable Land & Agrarian Reform Comprehensive support from all tiers of Govt, Private Sector Optimaluse of resources ( land, water, equipment, Capital, labour) Sustainable Land Reform and Socio-Economic Growth

8. LAND REFORM PROGRESS • Since the 1994, the Department has delivered at least 4,8 million ha of land of which 2,7 million ha was through redistribution, 2,1 million ha through restitution and 165 7783 ha through tenure reform. • The Commission on Restitution of Land Rights has settled 95% of the 79 696 lodge land claims and it left with about 4 900 very complex rural claims, which are in different phases of settlement. Sustainable Land Reform and Socio-Economic Growth

9. LRAD(Land Redistribution for Agricultural Development) • LRAD is unified and basic, it is flexible and beneficiaries can use it in ways according to their objectives and resources. • Beneficiaries make a contribution according to their abilities. • LRAD is demand directed, meaning that beneficiaries define the project type and size. • Implementation is decentralized. • It encourages participants to design what works best for them. To do this beneficiaries can access a range of grants (R111 152 to R430 857) depending on their own contribution. Sustainable Land Reform and Socio-Economic Growth

10. LRAD(Land Redistribution for Agricultural Development) • The types of projects include – but are not limited to – the following: • Food safety-net projects – Many participants may wish to access the Programme to acquire land for food crop and/or livestock production to improve household food security. This can be done on an individual or group basis. • Equity schemes – Participants can make the requisite matching own contribution and receive equity in agricultural enterprise tantamount to the value of the grant plus the own contribution. • Production for markets – Some participants will enter LRAD to engage in commercial agricultural activities. They will access the grant and combine it with normal bank loans, approved under standard banking procedures, and their own assets and cash to purchase a farm. Sustainable Land Reform and Socio-Economic Growth

11. STRATEGIC PRIVATE PARTNERSHIPS • We are not happy with the slow pace of land reform, more so because those who have been assisted to own land are not making the optimal use of land. • We have identified the urgent need for post settlement support for land reform beneficiaries, hence the review of the CASP from DoA • Land and tenure reform cannot be successful without strategic partners who are willing and able to support land reform. • These partners are meant to foster an enabling environment for ease, speed and sustainability of land reform interventions Sustainable Land Reform and Socio-Economic Growth

12. STRATEGIC PRIVATE PARTNERSHIPS • There are certain critical functions that these strategic partners are expected to cover the following functions: • Land identification. • Beneficiary identification. • Packaging of projects. • Post-settlement support. • Coaching, Mentorship and Advocacy. • Access to markets. • Access to additional finance. • AgriBEE. • Any technical assistance relating to scarce skills. • Any capacity gaps that the Land and Tenure Reform may deem necessary. Sustainable Land Reform and Socio-Economic Growth

13. STRATEGIC PARTNERS for PARTNERSHIPS • Organized Agriculture (Unions) • Emerging farmers • Food growers • Farm workers and dwellers • Government (DLA, DoA, DTI, SARS, DPLG, SAPS, PDA and Municipalities) • Women and Youth groups in Agriculture • Financial Institutions (Land Bank, ABSA, DBSA, etc) • Research Institutions (ARC, OBP, Universities, HSRC and CSIR) • Marketing and Trade Organizations (NAMC, WTO, etc) Sustainable Land Reform and Socio-Economic Growth

14. Partnership in SA Agriculture acceptance Trust Respect commitment Successful Partnership Support Recognition Positive Attitude Sustainable Land Reform and Socio-Economic Growth

15. LARP(Land and Agrarian Reform Project) • LARP has been implemented as an intergovernmental relations strategy to consolidate the efforts of the three tiers of government as well as cross government departments and also role-players outside the State to ensure sustainable Land and Agrarian Reform in South Africa. • This project was submitted and accepted by the Presidency as one of the 24 Presidential priorities commonly known as the Apex Priorities. • The objectives of Apex Priority 7, namely LARP are the following: Sustainable Land Reform and Socio-Economic Growth

16. REDESIGN CASP APPROVAL SYSTEM for it to deliver on this Approach? Increase Production 10% Land Reform Target Universal Access Services and Infrastructure Increase Export 10 – 15% CASP Increase Black Business10% Alignment between CASP and LARP • Compliance Issues • Carbon Food print • Global Gap • Quality control • Veterinarian services • Infrastructure • Fertilizer • Extension Services • Inputs such as livestock trees increase perhectare • Information and Knowledge • management • Technical Advisory Assistance • Training and capacity building • Marketing and Business Development • Financial Assistance • On and Off Infrastructure • Access to Finance • Business Support • AgriBEE Support • Legal Advise • Financial guarantees • Production finance Project specific Product specific Province specific Sustainable Land Reform and Socio-Economic Growth

17. LARP(Land and Agrarian Reform Project) • Access to agricultural production espouses the following principles: • Access to service delivery (synergies) between DLA, DoA and Agribusiness and support. • Comprehensive support (multi-sectoral, sustainable agricultural production) • Corporate governance. • Decentralization of decision making and implementation. • Utilization of partnerships. Sustainable Land Reform and Socio-Economic Growth

18. POLOKWANEAgri – Consultation 2008 • From 29 July 2008 to 1 August 2008 a multi stakeholder Agri-consultation was held it Polokwane, where it was resolved amongst others to: • Accelerate sustainable land reform; • Increase black entrepreneurs in the agri-business; • Increase agricultural production; • Increase agricultural trade; • Provide universal access to support services and target groups. Sustainable Land Reform and Socio-Economic Growth

19. FOOD SECURITYThe world food crisis: how does Land Reform fit into this picture • We have embarked on an integrated programme of rural development , land and agrarian reform based on the following: • Fundamental changes in the patterns on land ownership, which must include comprehensive support programmes with roper monitoring mechanisms to ensure sustainable improvements in livelihoods for the rural poor, farm workers, farm dwellers and small farmers, especially women. • Agrarian revolution aimed at supporting food production, expanding the role and productivity of modern small-holder farming and maintaining a vibrant and competitive agricultural sector. Sustainable Land Reform and Socio-Economic Growth

20. FOOD SECURITYThe world food crisis: how does Land Reform fit into this picture • Advocating for socio-economic rights for the poor so that they are able to produce their own food, like they had done in the past (prior the 1960s). This includes farm workers and farm dwellers. • Provide Resources and develop institutional capacity for land and agrarian reform (such as we had in the Marketing Boards and Agricultural Credit Board) • Establish new smallholders and improve the productivity of existing small-scale farmers, and integrate smallholders into formal value chains and link them with markets • Encourage and incentivize twining arrangements between small farmers and big farmers for mentorship's and mutual benefit Sustainable Land Reform and Socio-Economic Growth

21. FOOD SECURITYThe world food crisis: how does Land Reform fit into this picture • Review the mandate, capacity and operations of institutions such as the Land Bank, IDC and IDT to provide development support, directed credit and capital for investment for a transformed agricultural sector and rural economy. • Improve research and development and extension services appropriate to the development of smallholder farming sector. • Review the issue of agricultural Subsidies for the small farmers (just like Malawi did for increased agricultural production). • Review tariffs and marketing institutions and the relationship between these and our objective in respect of rural development. Sustainable Land Reform and Socio-Economic Growth

22. LEGISLATION AND POLICIES • Great strides have been made in respect of policy issues identified for accelerating the pace of land reform. • Willing buyer, willing seller - The finalization and approval of the discussion document on the willing buyer, willing seller principle. • An economic study will soon be undertaken on the four options proposed, which will then be taken through an interdepartmental consultation process. • Land ownership by non-South Africans – a document has been discussed with relevant departments and more consultations will take place. • Worried about great loss of agricultural land to game parks and lifestyle golf estates such as in East coast (WC, EC, KZN) Sustainable Land Reform and Socio-Economic Growth

23. LEGISLATION AND POLICIES • Provision of Land and Assistance Amendment Bill – with this Bill we would like to ensure sustainable use of land, where we are able to buy not only land but also relevant movable property such as agricultural equipment, tractors, shares in related business (value add). • This Bill was adopted in the National Assembly on 22 September 2008 and will be debated in the National Council of Provinces on 14 October 2008. Sustainable Land Reform and Socio-Economic Growth

24. CONCLUSION • No food no friendship no fun no future! • Sustainable land reform is critical for economic development • Co-operative governance and a Collective effort from both the Government and the sector Partners will take us where we want to go as the sector • We have many opportunities for a brighter future for all, provided we hold oneanother's hand Sustainable Land Reform and Socio-Economic Growth

25. CONCLUSION CONT…… • Let me thank all those who have made constructive inputs at this conference. I hope we will all make optimal use of the valuable knowledge. Sustainable Land Reform and Socio-Economic Growth

26. I THANK YOU Mr. Thozi Gwanya Director General: Dept of Land Affairs Telephone number: (012) 312 8139 Fax number: (012) 321 5871 E-mail address: TTGwanya@dla.gov.za S25 of the Constitution Provides Restitution for all victims of racial land dispossession Sustainable Land Reform and Socio-Economic Growth