The government’s ”narrow focus” on land is counter-productive, prominent Afrikaner businessmen and academics told President Thabo Mbeki on Thursday.
It is often the cause of failure and lack of sustainability in land reform, they argued during talks in Cape Town with Mbeki and Minister of Agriculture and Land Affairs Lulu Xingwana.
They had submitted suggestions on models and practical solutions to support land reform and black economic empowerment in the agribusiness sector, they said in a statement issued afterwards.
The businessmen included Naspers chairperson Ton Vosloo, Coronation Fund Managers CEO Thys du Toit, Rand Merchant Bank’s GT Ferreira, Investec Asset Management’s Hendrik du Toit, the Stonehage Group’s Guiseppe Cucci and academic Willie Esterhuyse.
A report on the pilot Renosterrivier project in the Northern Free State make it clear the government should focus on creating sustainable businesses rather than ”simply transferring” land, they
said.
Among the land reform problems it highlighted were:
- Poor underlying profitability of the agricultural sector;
- Lack of farming background and experience of emerging farmers;
- Lack of finance and the reluctance of the financial sector to implement appropriate products;
- Inefficient scale of operation; and
- Lack of price information and access to markets.
It suggested the state buy land and lease it to new suitable candidates, with transfer based on demonstrated commitment and the achievement of certain milestones.
It also asked for investment in education to train the next generation of black farmers
The businessmen agreed to provide R1,5-million in funding over three years to create capacity and cover overheads for the Renosterrivier support centre.
They also agreed to arrange access to finance by ensuring the availability of R5-million in the form of working capital loans.
A manager will be appointed to provide support, coordinate and drive the initiative, with guidance from the Renosterrivier support centre board.
He will be available to help the Department of Agriculture and Land Affairs with existing and new projects in the area.
He will also mobilise additional private sector resources to help with business plans, accessing finance, setting up administration systems and maintaining a database of all initiatives.
The businessmen said the pilot project will use mentorships and partnerships to establish new farmers on the land in an attempt to link emerging farmers and mainstream markets and, in so doing, make land reform succeed and farming sustainable. — Sapa