The government’s ”narrow focus” on land was counter-productive, says a report delivered to President Thabo Mbeki this week.
This was often the cause of failure and lack of sustainability in land reform, argues the document.
The report, handed over by a group of farmers on Tuesday, resulted from an initiative by a group of prominent Afrikaner businessmen and academics.
The group sought to provide Mbeki with a workable model for land reform.
In a statement on Thursday the group said the report submitted suggestions on models and practical solutions to support land reform and black economic empowerment in agribusiness.
The businessmen who commissioned the report included Naspers chairperson Ton Vosloo, Coronation Fund Managers chief executive officer 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 made it clear the government should focus on creating sustainable businesses rather than ”simply transferring” land.
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 would be appointed to provide support, co-ordinate and drive the initiative, with guidance from the Renosterrivier Support Centre Board.
He would be available to help the Land Affairs and Agriculture Department with existing and new projects in the area. He would 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 would 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