The content on this page is not written by Polity.org.za, but is supplied by third parties. This content does not constitute news reporting by Polity.org.za.

DA to request meeting with Rural Development minister over R3.5 billion owed for post-settlement grants
DA questions had revealed massive problems in the ANC's land reform policy
ANC needs to consider DA's Alternative Budget and a workable solution to land reform.





Following the revelation by the Minister of Rural Development and Land Reform yesterday, in response to a Democratic Alliance (DA) question, that his Department owes land claimants R3.4-billion in post-settlement grants, I will be requesting a meeting with the Minister to discuss alternatives to current government policy that will ensure that despite the lack of funds, land claim beneficiaries are still awarded much-needed post settlement support.

It is glaringly apparent that land reform policy, as currently formulated, is doing little to achieve one of its primary aims: ensuring sustainable livelihoods for those people who have benefitted from land redistribution. It is not enough for the Department to focus on cosmetic changes - claimants benefitting from land redistribution require funds to assist them in ensuring that their new livelihoods are both successful and sustainable.

Yesterday it was revealed that the national Department of Rural Development and Land Reform owes R3.5-billion for post-settlement grants. The full details of this funding shortfall are as follows:

• Mpumalanga - R2.6-billion
• Eastern Cape - R396-million
• Limpopo - R305-milion
• KwaZulu-Natal - R77-million
• Western Cape - R196-million
• Free State and Northern Cape - R13-million
• Gauteng and the North West - R35-million

In a statement I issued yesterday, I made reference to the situation in seven of the nine provinces. Please make note of the additional details for Mpumalanga and KwaZulu-Natal, which are supplied above.

It is imperative that South Africa's skewed patterns of land ownership are addressed. However, land reform must not be seen in terms of redistribution of land alone, but should also be carried out with the objective of making life better for land claimants. The objective of improved livelihoods for land claimants will not be achieved unless the necessary post-land transfer support is awarded to beneficiaries. For every one rand spent on land purchase, an additional one is needed for livestock, equipment and production inputs to ensure viable small farming enterprises in South Africa.

However, it has become clear that due to the insufficient budgetary allocations to the land reform process, the goal of creating sustainable rural livelihoods cannot be achieved under present ANC policy. The Department simply does not have enough money to both purchase land and provide support at the same time, essentially rendering its current policy formulation almost completely ineffectual. Alternatives to relying simply on drawing money from the fiscus need to be examined to ensure that land reform beneficiaries can make a success of land transferred to them. The DA's policy on land reform contains workable solutions that should be explored by the Department of Rural Development and Land Reform:

• Working with commercial banks to develop a greater range of affordable financing options for land claim beneficiaries
• Developing a legislative framework for community banks and other types of revolving credit schemes for small scale-agriculture
• Providing better training to extension officers
• Incentivising mentorship schemes with private commercial farmers, including offering rebates on loans for farmers taking part in mentorship schemes
• The establishment of a division within the Department with the specific role of monitoring land reform projects.

In addition, the ANC government needs to very carefully consider the budgetary allocation currently designated to the entire Rural Development Department. Under the DA's fully costed Alternative Budget, we proposed a budgetary method of increasing provisions for land reform by 58% from R5,1 billion to R8,1 billion and we believe that this is the sort of funding that should be allocated to land reform if we are to see it meeting its targeted goals.

I will be writing to the Minister requesting a meeting to discuss these proposals.