The government should make it a priority this year to release unused state land to black farmers, according to agricultural economist Wandile Sihlobo.
In a newsletter, Sihlobo focuses on the state land issue, which he has highlighted regularly as an essential element in improving South Africa’s agricultural productivity.
Over the years, the government has acquired some 2.5 million hectares of land intended to be used by black farmers. Some of the land is leased, but most is unused or underused.
It should all be released, with title deeds, to “deserving beneficiaries who can use it optimally” – those who qualify for the blended finance scheme run by government, financial institutions and agribusiness, Sihlobo says.
This is in accordance with the new government policy outlined last year by President Cyril Ramaphosa.
“We will increase funding to land reform, prioritise the transfer of state land and improve post-settlement support by strengthening the institutional capacity of responsible structures,” Ramaphosa said.
Sihlobo noted that leasing the land is inefficient.
“I have interacted with some of the beneficiary black farmers who have told me countless stories of pain and frustration. Their stories centre around the fact that commercialisation is proving difficult.
“The key to attracting investment and unlocking productivity is the security of tenure. The short-term leases the government provides them are unhelpful in unlocking capital and enabling operations. Getting this right could help promote commercialisation and yield sustainable jobs for communities.”
This should be the starting point for agriculture in 2025, Sihlobo said.
