1 INKEZO LAND COMPANY Presentation to Parliamentary Committee: Land & Agric 18 th October 2004 Nomkhita Mona

Outline of Presentation Background Vision Key Inkezo Deliverables Services Pre-settlement Support Post-settlement Support Challenges Call to Action

Background Section 21 Company established by the Sugar Industry. Focus on land redistribution – target of 30% set by Govt. by Willing Buyer / Willing Seller Principle Registered Nov 03/ Operational April 04.

Vision “ A sustainable sugar industry in South Africa ensured through diverse ownership of agricultural land under sugarcane by competent farmers by 2014 ” Bigger vision – replicate Inkezo model to other Agricultural commodities

Key Inkezo Deliverables Transfer hectares by 2014 = 650 ha’s per month. Key deliverables: –Lobbying and fundraising –Fast track land reform – hectares redistributed –Sustainability – Pre-and-Post transfer support

Area Under Cane Area under cane data Ha % of Total Total Area Under Sugarcane % Under Black Control % Freehold Land % Tribal Land %

Sugar Industry LandHa SA Black Controlled Land Total Swaziland Industry Total Zimbabwe Industry Total Mozambique Industry Total Malawian Industry Total Tanzanian Industry Total Zambian Industry

Services Grant funds: International and national grant funds to facilitate a commercial transaction (willing-buyer, willing-seller) Finance to the new farmer: LRAD, Financial Institutions – subsidized interest rates, underwrite exchange rate on foreign loans Waive or reduce transaction costs: Cost of subdivision, survey, Ministerial approvals Access to information and processes: Land transfer rules and laws

Pre-Settlement Support Create informed willing buyers Basic information / Reality check 2/3 Day Mini course Highlight risks & benefits of farming Technical, Financial & Industry Support

Post-transfer support Extension Support –Sugar industry structures Mentorship - Ongoing –Financial Management –Commercial and buying assistance –Agronomic advice –Integration into the farming community Marketing (Not an issue in the sugar industry)

Challenges Dedicated Government Funding Donor Funding: –Donor environment restructuring –Some donors moving out of land reform – focus on Aids, Human Rights, etc Support on Training & Mentorship

Challenges Bureaucracy / Unnecessary Red Tape Lack of coordination Insufficient funding Ability of the Willing Buyer to raise finance Production Money Researching different models of land reform

Financing Traditional financing mechanisms not adequate / not suitable New innovative products by financiers Creative and Innovative ideas for access to funding for new farmers – especially costs to bridge affordability gaps Incentives for the financiers

Call to Action Colloquium –Fundamental strategic issue of national interest –Input by wide range of members of society Common national vision about how land reform is to be approached

Conclusion Delivery is not negotiable Long-term solutions rather than short- term approach One-stop shop: –Sleek bureaucratic systems –Seamlessness between parties (DLA, Land Bank, DoAgric, Financiers, etc)