1. AFASA National Assembly Constitutional Review Committee:
Land Expropriation Without Compensation:
Dr Vuyo Mahlati

2. Land ownership in SA: State vs Private
Province
State
Private
Unknown
State-Private
State-Unknown
Private-Unknown
Total Ha Ha % EC 13 86
50 119
14 498
145
2 323 FS 7 93
4 430
116 31
906 GP 23 75
8 694
7 889 28
119
KZN 44 55
29 378
44 872
321
2 687 LP 62
10 879
7 102 1
217 MP 30 67
19 707
11 026 25
896 NW 24 73
2 843
15 627 2
1 098 NC 10 85
26 573
4 463 WC 9 89
27 726
16 542 3
Total 17 82
557
12715
To be replaced by an accurate slide from Sir Mdu
Source: Land Audit Report (2017)

3. Agricultural Land ownership in South Africa by different categories
Province
Individuals
Private
Companies
Organs
Trusts
Foreign
Government
Co-ownership
Total Ha Ha % EC 43 18 2 36
69 870 1 FS 42 16 41
31 470 GP 40 45
60 536 4 10
114
11 556
KZN 30 31 6 3 LP 22 50 9 17
396
60 564 MP 28 5 24
36 185 NW 26 NC 47 WC 32 27 35
108
Total 39 25
625
To be replaced by an accurate slide from Sir Mdu
Source: Land Audit Report (2017)

4. Agricultural Land ownership in South Africa by race
Province
White
Blacks
Other
Co-ownership
Total Ha % EC 65 30 3
42 723 1 FS 75 21 4
21 119 GP 59 35
15 925
8 528 2
KZN 53 39
72 033
65 875 LP 29
73 174
20 165 MP 67
41 702
19 652 NW 73 22
72 536 NC 77 20
60 112 WC 71 5 72 23
To be replaced by an accurate slide from Sir Mdu
Source: Land Audit Report (2017)

5. Land Reform Failures and Root courses
NB: There is no country in the world that has successfully implemented land reform by solely relying on the market to redistribute land
Market failure (brought about by Willing buyer-willing seller principle)
Most part of the land bought was marginal land
Highly inflated prices (reliability of the untransformed Property Valuation profession)
NB: Commercial banks never use land reform comparable sales in making borrowing decision
Land reform acquisition has landed itself to collusion and corruption:
Farmer- Desperate to sell (due to age, no successor or debt, etc)
Estate Agent- Interested to make as high commission as possible
Property Valuer- Chasing the next transaction and thus inflate the land price (relying on the Gov Official to appoint)
Government Official- Interested to make a quick money
Poor state capacity to effectively implement policies
Liberalisation of the Agricultural Sector left new (black) entrants without any meaningful support
Deregulation (e.g. The repeal of the Agricultural Marketing Boards)
Abolishing of the Agricultural Credit Board
Financial remodelling of the Land Bank ( limited to non existent State support for the Bank)
Reducing budget of critical state agencies (e.g. ARC, OBP, etc)
Water Rights
Linking water rights to individuals (not farms)

6. Why land expropriation without compensation?
Speed up land reform with systematic transformative focus
Spatial Equity
Markets have failed to efficiently facilitate land access to blacks
Redress imbalances occasioned by colonial and apartheid dispossesions
De-racialize land ownership patterns in the country.
Reduce poverty and improve food production.
Increase participation of black people particularly, in the value chain processes.
To deal with discontent of the ownership patterns in this country, address them.

7. Food Security Restoration
Critical Goals
Goal 1:
Transformative Comprehensive Land Resettlement Plan for Socio-Economic and Sustainable Development (NDP & MDGs)
Goal 2:
Food Security Restoration
Goal 3:
Alignment of Land Reform with Agrarian Reform

8. Goal 1: Transformative Comprehensive Land Resettlement Plan for Socio-Economic and Sustainable Development (NDP & MDGs)
Description
Current
Proposed
 Approach
Farm by farm approach
Geographical, Agro-ecological and commodity approach
2. Legislation
Limited legislation for implementation of Section 25 (i.e. Object of transformation not addressed)
Gap 1:
Current use of apartheid legislation (Provision of Land and Assistance Act 126 of 1993)
Problematic redistribution legislation
Gap 2:
Absence of legislation dealing with expropriation of agricultural land with/without compensation
Gap 3:
Implementation of the NDP is voluntary / not legislated
Introduction of new legislation
Comprehensive compulsory acquisition legislation (empowering the president to achieve the objectives of transformative comprehensive resettlement plan)
New legislation to provide for, among other things:
Expropriation of certain categories of land without compensation
Expropriation of certain categories of land with compensation in line with Section 25 of the Constitution
The president to publish a schedule of all land earmarked for expropriation
The state to have a dedicated capacity and resources to swiftly and efficiently execute expropriation
3. Market
Voluntary (Willing buyer, willing seller; market driven)
Targeted / Compulsory acquisition
Proactive designated/ringfenced land for transformation/ public interest
4. Land Value
Land Value:
Comparable sales
Emphasis on productive capacity (fair and equitable)

9. Goal 1: Transformative Comprehensive Land Resettlement Plan for Socio-Economic and Sustainable Development (NDP & MDGs)
Description
Current
Proposed
5. Programmes
PLAS (leased land under the ownership of government although some farmers do not have leases)
50/50 or Strengthening Relative Rights (SRR) of People working the land (mainly benefiting white owners)
Share equity schemes & LRAD (scrapped in 2010)
Land Restitution
A New Land Redistribution Law
PLAS farms to be transferred to current leases with full title
50/50 must be scrapped and subjected for value for money audit to determine who benefited and on what bases
Expropriation of Land Without Compensation will benefit Restitution since the state does not have enough resources to fund the programme
6. Finance
Discriminatory financing model
Collateral/equity (suretyships)
Over 90% of the agricultural loan book (with major DFI and private bank) services established white farmers and Agribusinesses
Progressive developmental financing model
Reposition of the land and agricultural financing institutions e.g. LB, IDC
Review and increase government incentive schemes to support black participation in the main stream of agriculture as a productive sector
Promote value chain-based financing
Favourable repayment terms (e.g. past land bank- 65 years repayment period; role of credit boards)
7. Water Rights
Water access:
Water rights linked to individuals
Current water rights application is cumbersome
Lack of irrigation infrastructure for both communal and post settlement area
Water Access:
Water rights liked to the farm
Efficient, effective and transformative application process
Investment in irrigation schemes

10. Goal 2: Food Security and Restoration
Land allocation (Not Third Grade Land)
Food Insecurity, Hunger
Food Production Concentration to few White Commercial Farmers (Competition Commission – high concentration in grain, storage and processing)
Food system Transformation
Mechanisation
Infrastructure (Roads, Storage, logistics etc)
Implement 30% Set Aside for black farmers in food value chain across the board (Private and Public sector) with requisite enforcement instruments
Preferential procurement
Education (School Feeding Schemes)
Health (Hospitals)
Correctional Service (Prisons)

11. Goal 3: Alignment of Land Reform with Agrarian Reform
Land allocation (Not Third Grade Land)
Food system Transformation
Mechanisation
Infrastructure (Roads, Storage, logistics etc)
Implement 30% Set Aside for black farmers in food value chain across the board (Private and Public sector) with requisite enforcement instruments
Preferential procurement
Education (School Feeding Schemes)
Health (Hospitals)
Correctional Service (Prisons)

12. Goal 3: Alignment of Land Reform with Agrarian Reform
Land reform and food security continuum
Commercial farms
Farm Dwellers &
Labour Tenants
Communal and freeholds
Subsistence
Emerging
Commercial
Furthermore: There is a need to bring youth and women

13. Thank You