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Ownership of land: How to forge win-win partnerships

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I’ve travelled the length and breadth of South Africa for the past decade and continue to be intimately involved in people development within the educational, cultural and economic spheres.

My current job entails transformation in the agricultural sector and what a privilege it is to be part of so many agricultural projects which are successful.

In all instances such success is the result of win-win partnerships between black, coloured and white farmers who respect and care for each other.

However, I’ve also seen many agricultural projects that have failed. Once-thriving farms are destroyed due to a lack of support and expertise, mismanagement, corruption, lack of partnerships, and conflict between beneficiaries.

A critical success factor that runs like a golden tread throughout the many successful agricultural projects is ownership of land.

For many black and coloured farmers this issue is the biggest constraint, because the land on which they farm cannot be used as security to access finance.

Sadly, current policy pronouncements by the Economic Freedom Fighters (EFF) and the ANC dismiss or question the concept of private ownership.

This, for me, is a critical building block for economic freedom and wealth creation.

Nationalisation of land as proposed by the EFF means that the state becomes the owner of all land. Existing title deeds constituting evidence of a right, especially to ownership of property, will be nullified.

The economic implications for every citizen who owns the land on which their house, factory or shop is built, and where retail, manufacturing and farming operations for are practiced, will be dire.

Most people use their properties as security to borrow money from banks and municipalities, who depend on the rates and taxes they collect from all property owners to build and maintain infrastructure.

For our Treasury that already faces a shortfall of R48 billion, an additional burden to compensate municipalities for the loss of income from rates and taxes will result in the need to increase taxes to avoid a complete collapse of municipalities.

It is clear that should the state become the owner of all land, it will put South Africa on a path of economic decline from which it will never recover.

And while the rich will be able to emigrate and shift their money to other countries, ordinary South Africans – especially the poor – will bear the brunt.

Many of our state institutions such as public hospitals, schools, colleges and farms that are under state control are barely functioning and, as such, perpetuate and deepen the hardship our people endure daily.

While so many people pin their hopes on accessing land for agricultural purposes, it’s clear that the proposed changes to the Constitution to expropriate land without compensation will only benefit the politically connected.

This was the case for the past 20 years and it will be no different in the event of large-scale land expropriation, due to deeply rooted corruption, political patronage and incompetence.

The Agri-Phakisa initiatives are based on chapter six of the National Development Plan (NDP) and are the result of intensive engagement between all government departments, agricultural labour unions, organised agricultural bodies, universities and leading agricultural policies.

They developed in-depth and comprehensive project plans related to land reform, farmer development, rural development, farmworker skills development and farmworker housing ownership plans.

These plans were developed to transform the agricultural landscape in a methodological and sustainable way to ensure people development, restoration of their dignity, food security and job creation.

Why not implement them as a joint project between the public and private sector, under the custodianship of all political parties?

Sadly, though, some of our political leaders are hellbent on stoking racial division and hatred.

So too are extremist right wing groups who are fuelling fear and the handful of lunatics that are threatening each other with war talk.

No land grabs or illegal occupation of land has taken place thus far, which leaves the door wide open for constructive engagement between organised farmer unions and the government.

Visionary and statesmanlike leadership is now required that will not compromise on any attempt to change the Constitution to allow for expropriation without compensation and the nationalisation of land.

Because it is not in the interest of our people.

Instead, it will bring about greater uncertainty, deter foreign investment and result in economic havoc and untold suffering!

For the corrupt and political opportunists, such ill-fated policies create the perfect breeding ground for self-enrichment at the expense of our citizenry and allow them to consolidate their power based on nepotism, partisanship or patronage.

Let us not be fooled by populist rhetoric!

We have the agricultural plans jointly developed by players in the agricultural sector and which are based on chapter six of the NDP.

Government forked out millions to get everyone around the table to devise workable and implementable plans.

The successful implementation thereof should be our first priority.

Why it isn’t, is beyond anyone’s grasp.

Van der Rheede is a deputy executive director at AgriSA

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