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The impact of land restitution and land reform on livelihoods

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Abstract

This report investigates emerging trends evident in the limited literature available on the impact of land restitution on livelihoods, and suggests ways of thinking about, and planning for, livelihoods. The report has a two-fold emphasis: its primary focus is on rural restitution claims where land has been restored, but it also addresses rural land reform more generally. Where land ownership has been transferred to land reform beneficiaries, similar patterns and challenges may arise, regardless of whether the land was acquired through the redistribution or the restitution route. Belgian Technical Cooperation (BTC)
School of Government, UWC
COMMISSION
ON RESTITUTION
OF LAND RIGHTS
Department of
Land Affairs
Belgische Technische Coöperatie nv
Coopération Technique Belge sa
Research
Report
The Impact of Land Restitution and Land
Reform on Livelihoods
Ruth Hall
The Impact of Land Restitution and Land Reform on Livelihoods
Ruth Hall
Published by the Programme for Land and Agrarian Studies, School of Government,
University of the Western Cape, Private Bag X17, Bellville 7535, Cape Town, South Africa.
Tel: +27 21 959 3733. Fax: +27 21 959 3732. E-mail: plaas@uwc.ac.za
Website: www.plaas.org.za
In collaboration with Department of Land Affairs, Commission on Restitution of Land Rights
and Belgische Technische Coöperatie (BTC)
Programme for Land and Agrarian Studies research report no. 32
ISBN: 978-1-86808-677-1
August 2007
All rights reserved. No part of this publication may be reproduced or transmitted, in any form
or by any means, without prior permission from the publisher or the authors.
Copy editor: Roelien Theron
Cover photograph: PLAAS
Layout: Designs4development, info@d4d.co.za
Typeset in Frutiger
Printing: RNK Graphics
Cartographer: John Hall
This document forms part of a series of reports researched and written by the Sustainable
Development Consortium, led by Phuhlisani Solutions, on behalf of the Commission on Restitution
of Land Rights and Belgian Technical Cooperation.
Research
Report
The Impact of Land Restitution and Land
Reform on Livelihoods
Ruth Hall
i
The Impact of Land Restitution and Land Reform on Livelihoods
Contents
Acronyms i
1. Introduction 1
2. Background 2
3. Existing literature on livelihood impacts 3
Quality of Life reports 3
Community Agency for Social Enquiry case studies 5
Land Redistribution for Agricultural Development (LRAD) case studies 6
District case studies 7
4. Livelihoods impacts in rural restitution projects 9
Bjatladi 9
Klipgat 10
Dwesa-Cwebe 11
Covie 12
eMpangisweni 12
Groenfontein 13
5. Conclusions: Emerging trends in livelihood impacts 15
6. Recommendations 20
7. References 21
Diagnostic studies 22
ii
The Impact of Land Restitution and Land Reform on Livelihoods
Acronyms
ARDC Agriculture Rural Development Corporation
ASGISA Accelerated and Shared Growth Initiative for South Africa
CASE Community Agency for Social Enquiry
CASP Comprehensive Agricultural Support Programme
COMBUD Commercial Farming Budget Manual
CPA Communal Property Association
DLA Department of Land Affairs
DWAF Department of Water Affairs and Forestry
EPWP Extended Public Works Programme
IDP Integrated Development Plan
LRAD Land Redistribution for Agricultural Development
MOU Memorandum of Understanding
NGO Non-governmental Organisation
QOL Quality of Life
RLCC Regional Land Claims Commission
SLAG Settlement/Land Acquisition Grant
UADP Umnotho Agricultural Development Project
UNDP United Nations Development Programme
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The Impact of Land Restitution and Land Reform on Livelihoods
1. Introduction
This thematic paper investigates emerging trends evident
in the limited literature available on the impact of land
restitution on livelihoods, and suggests ways of thinking
about, and planning for, livelihoods.
The paper has a two-fold emphasis: its primary focus is on
rural restitution claims where land has been restored, but it
also addresses rural land reform more generally. Where land
ownership has been transferred to land reform beneficiaries,
similar patterns and challenges may arise, regardless of
whether the land was acquired through the redistribution
or the restitution route.
The analysis is based on a synthesis of available quantitative
and qualitative sources, including a relatively small but
growing body of qualitative case studies. These include six
rural restitution claims which were studied as part of the
Sustainable Development Consortium’s Post-settlement
Support Project. These case studies are: Bjatladi (Limpopo),
Klipgat (North West), Dwesa-Cwebe (Eastern Cape), Covie
(Western Cape), eMpangisweni (KwaZulu-Natal), and
Groenfontein (Mpumalanga). It explores the kinds of land
use people are engaging in and how these affect their
livelihood opportunities. All of these projects are still at an
early stage of development, and the ultimate impacts on the
livelihoods of beneficiaries will take time to become clear.
The focus of this paper, therefore, is on the design and set-up
of projects, the kinds of livelihood opportunities envisaged
in business plans, how these are supported financially
and institutionally, and the dynamics that ensue. On this
basis, the paper draws lessons about how post-settlement
support impacts on the livelihood potential of land reform
projects and recommends ways in which such support can
be optimised for maximum livelihood benefits.
Photo: Marc Wegerif
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The Impact of Land Restitution and Land Reform on Livelihoods
2. Background
It is widely acknowledged that policies that facilitate
access to land can reduce poverty and income inequality.
Internationally, studies have demonstrated that the
impact of land redistribution on incomes, quality of life
and livelihoods may take some years to become apparent.
This is evident, for example, from the longitudinal panel
study conducted by Kinsey in Zimbabwe, from the early
1980s to the late 1990s (Kinsey 2000, 2005). In addition,
the international literature shows that a positive impact
on livelihoods is not guaranteed, but contingent on the
manner of implementation, both prior to and following the
transfer of land rights:
The key lesson that can be drawn from [a] range of country
studies is that, irrespective of the political or historical
milieu, the transfer of land alone is not sufficient and
requires buttressing by settlement support provision from a
range of institutions and sectors. In the absence of ongoing
support and capacity building, new land owners will run
the risk of being set up to fail. For development activities on
acquired land to be sustainable and to impact positively
on the lives of beneficiaries, requires a comprehensive,
responsive and on-going interaction between those
requiring and determining the support they require and
those who provide such support (PLAAS 2006: 41).
In the 1990s, the World Bank famously demonstrated a
correlation between more equal distributions of land (a Gini
co-efficient for land distribution) and average economic
growth over time (Binswanger et al. 1995; Deininger 2006).
This has been used as a basis on which to assert a causal
relation between land reform and economic growth.
However, while such arguments may be well received, and
while they may make sense intuitively, there is in fact very
little empirical basis on which to conclude that land reform
improves the livelihoods of those who are its ‘beneficiaries’.
This is particularly true of South Africa, where credible studies
of livelihood impacts have been almost non-existent.
Not only do we not know whether land reform in South
Africa is improving the livelihoods of those who have
benefited directly from land transfers, we also do not know
what the impact of land redistribution has been on other
affected groups such as former farm workers who have been
displaced by land reform or incorporated within projects.
No data is available on related issues, such as whether
beneficiaries remit additional income to family members or
others, whether beneficiaries are able to accumulate assets
and savings, and whether an increase in assets and savings
in turn allows investment in non-farm enterprises, which
thus create employment for others.
The implications for livelihoods of maintaining or
changing land use are contextual. The case studies in
this report demonstrate that dramatic and sometimes
unplanned changes in production, including the collapse of
production, sometimes ensue – leading to minimal benefits
for beneficiaries. However, maintaining existing production
systems intact does not ensure benefits for participants
either, as is evident in some of the joint venture projects.
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The Impact of Land Restitution and Land Reform on Livelihoods
3. Existing literature on livelihood
impacts
The central problem in assessing the impact of land reform
on livelihoods is the paucity of post-settlement evaluation
studies. Simply put, there is a lack of data. Even where there
have been studies, impact evaluation is hampered by the
absence of baseline data on the socio-economic status of
beneficiaries entering the programme, a lack of agreed
indicators, and the lack of longitudinal panel data.
The sustainable livelihoods literature draws attention to
the concern that livelihoods not only improve as a result of
policy interventions, but that they improve in a sustainable
manner. The concern with sustainability thus requires
that the improved outcomes endure, or improve further,
over time. The well-known ‘livelihoods pentagon’ depicts
the dimensions of livelihoods and the interdependent
relationship between five dimensions of livelihood assets,
or ‘capitals’:
human capital (education and skills)
social capital (relationships and networks)
natural capital (land and water)
financial capital (money and loans)
physical capital (infrastructure and assets).1
Within the South African context, there is little agreement
on core indicators of ‘success’ in land reform projects. Most
attention to date has been on the number of hectares
transferred, and the number of beneficiaries. Little or no
attention is paid to the livelihood benefits generated, in
either qualitative or quantitative terms. So, when assessing
specific projects or conducting national surveys on the
livelihoods of land reform beneficiaries, what are we looking
for?
The South African literature on land reform suggests that
outcomes, or indicators, of sustainable livelihoods should
include the following:2
More income (from marketed produce, wage
employment), increased regularity of income, and
more egalitarian distribution of income.
Increased well-being: Improved access to clean
drinking water and to sanitation, improved housing,
ownership of household items, and access to fuel for
cooking.
Reduced vulnerability: Improved access to social
infrastructure like schools and clinics, increased
mobility.
Improved food security (from self-provisioning
and increased disposable cash income) resulting in
improved nutritional status.
More sustainable use of the natural resource base.
The sustainable livelihoods framework is widely used
internationally in academia but also as a planning and
evaluation tool by governments, non-governmental
organisations (NGOs), consultants and donors. It constitutes
a relevant basis for developing indicators of livelihood
impacts – something which is now urgently needed for the
land reform programme.
Although it does not inform any official set of indicators,
the notion of multi-dimensional livelihoods is prominent
among analysts of land reform in South Africa, who have
drawn attention to diversified livelihood strategies. The
rest of this section reviews some of the key sources of data
on livelihood impacts in land reform in South Africa. It
highlights the dominant attention in policy paid to natural
capital, and the need to address deficiencies in physical,
financial, human, social and political capital in order to
generate sustainable livelihoods.
Quality of Life reports
The Quality of Life (QOL) surveys conducted by the
Department of Land Affairs (DLA) have provided some,
limited, insights into the land uses and livelihoods of
land reform beneficiaries. The QOL surveys were initially
envisaged as annual surveys, later as biannual surveys, and
have in practice been published in 1998, 2000 and 2003,
with a fourth survey being in process during 2006, for which
results are expected to be available during 2007. The DLA
commissioned the QOL surveys to investigate the extent to
which the objectives of the land reform programme have
been met. The surveys claim to provide ‘an account of the
impact of land reform on the livelihoods of land reform
beneficiaries’ (DLA 2003:xx).
1 The United Nations Development Programme (UNDP) uses a hexagon, rather than a traditional pentagon, with the addition of political capital as a sixth
dimension of livelihood assets.
2 Based on Andrew et al. 2003, DLA 2003, and May and Roberts 2000.
4
The Impact of Land Restitution and Land Reform on Livelihoods
Thirty-eight percent of households were deriving
income either from the sale or own consumption of
agriculture and livestock, while 62% were not deriving
income at all, indicating that livelihood impacts may
be very unequal across households, even within
the same project. The average household income
from agricultural activities for the total sample was
R1 146 per annum (May & Roberts 2000:15).
The most common land uses were the extension of existing
livestock herds and maize production for household
consumption – two important inputs into the livelihoods
of poor and vulnerable households (May & Roberts 2000).
Even while most production on redistributed land was
considered to be for ‘subsistence’, the survey found that
among those cultivating, most are both buying inputs and
selling at least some of their produce, usually in very local
markets – as is the norm for ‘subsistence producers in South
Africa. The study found that land reform beneficiaries were
better off than the rural population on average, but failed
to demonstrate whether or not this was as a result of their
improved access to land – or whether this correlation was
due to the better off being more likely to be able to access
the programme.
The analysis is clearly a first step that should be
complemented by more detailed examination of the data
available, as well as continuing monitoring of progress
along the way. The current data does not permit a detailed
impact analysis of the land reform, and only tentative
conclusions can be reached at this stage (May & Roberts
2000:23).
The third QOL survey, conducted in 2002 and reported in
2003, encountered serious problems and discontinuities
with previous surveys. It differed from its predecessors in
terms of its sample, the design of the research instruments
and analysis of the data. This report was never officially
released by DLA. Despite, or perhaps in view of, the
methodological problems encountered, it provided
important recommendations for future impact analysis, as
follows:
The DLA needs to integrate the collection of baseline
household level information into its project cycles so
that information on the quality of life of beneficiaries
prior to the transfer of land is recorded. This is a basis for
monitoring and evaluation. This will require improving
the Landbase data system of M&E and capturing more
extensive beneficiary and project information during the
project approval stage.
The DLA should produce QOL reports on an annual basis,
using a standard set of sur vey instruments to reflect
the impact of land reform over time. The reports should
The first survey was a small study conducted internally
by the DLAs Monitoring and Evaluation Directorate, and
published as the Annual Quality of Life Report in October
1998. This survey, conducted in 1997–98, ‘was widely
criticised for its limited scope, its questionable theoretical
assumptions and its methodology’ (Naidoo 1999, cited in
Lahiff et al. 2003:47).
An independent assessment of the repor t concluded
that the study was not sufficiently detailed to permit the
assessment that was required by DLA. The assessment
also questioned the sampling procedures that were used,
and the way in which these were implemented raising
the concern that the study may not be representative or
sufficiently rigorous for the purposes of monitoring (Lahiff
et al. 2003:47).
The second survey attempted to assess the impact of reform
on livelihoods, though this was shortly after transfer – more
than half the projects had been transferred less than a year
prior to the survey (Lahiff et al. 2003; May & Roberts 2000).
The survey found widespread underutilisation of land, both
in the sense of land not being used at all, and land that was
potentially arable being used for less intensive forms of
production: ‘much land remains under-utilised, with neither
grazing nor cultivation occurring’ and ‘the most common
form of productive use is as grazing land’ (May & Roberts
2000:8,13).
The key findings on livelihood strategies from the second
QOL survey were that ‘beneficiary households have
alarmingly high levels of poverty, with 78% falling below the
expenditure poverty line of R476.30 per adult equivalent
per month and 47% classed as ultra poor (less than half the
poverty expenditure line)’ (May & Roberts 2000:14). As with
the previous QOL survey, this finding would appear to refer
to the position of beneficiaries at the time they joined the
project, rather than as a result of land reform, given that
most projects surveyed were still at the inception stage.
Nevertheless, there was substantial variation in beneficiaries’
livelihood sources and strategies.
The key findings of the second QOL survey on the livelihoods
of land reform beneficiaries were:
Sixty-three percent of beneficiary households received
some form of waged income.
Just under 20% of beneficiary households received an
income from both agricultural production and self-
employment activities.
Only 8% of households acknowledged transfer
payments, though this low figure is probably related
to the virtual absence of migrant household members
in the sample.
5
The Impact of Land Restitution and Land Reform on Livelihoods
be extended to assessing the resources committed to
the delivery of land reform, including staff capacity,
capital and operating budgets, and contributions from
other government departments, parastatal and local
government institutions.
The QOL survey should be extended to include a control
group of rural households and communities that have not
benefited from land reform. This will enable future reports to
compare improvements in the quality of life of land reform
participants to other rural populations. Existing macro
data sets are not appropriate for this comparison as they
are outdated. Neither is the National Census appropriate,
as it is conducted only every five years and there is too long
a delay in the release of results (DLA 2003:xxxii).
The QOL studies have shown that those who are richer are
more likely to have cattle – but are they richer because
they have cattle, or do they have cattle because they are
richer? Those in the programme are better off than the rural
population as a whole – but are they better off because
they are land reform beneficiaries or did they manage
to become land reform beneficiaries because they are
better off? Redistribution policy, unlike restitution policy, is
premised on the presumption that the presence of an own
contribution can have a positive impact, but this proposition
has not been empirically tested. As Murray observed in the
Free State, those who are best placed to participate in the
land reform programme, and predominated in an early
study of land reform, were those who were literate, had
their own disposable resources with which to pursue their
applications, had access to telecommunications, transport
and officialdom, and had social and political networks
(Murray 1997).
In summary, there remain both technical and conceptual
challenges in determining livelihood impacts within the
context of South Africa’s land reform programme. Existing
data from the QOL studies on the livelihoods of land reform
beneficiaries demonstrate important correlations, but on
the whole fail to demonstrate causal relations that tell us
something about the ability of land reform to improve
people’s livelihoods and lift them out of poverty.
In the absence of baseline data a profile of people
entering the programme – subsequent surveys can only
provide a snapshot of people’s livelihoods, but cannot
explain how these have changed as a result of land reform.
In addition to the ‘before’ and ‘after’ dimension, few, if any,
studies have attempted to disentangle or even adequately
conceptualise on-project livelihoods in relation to people’s
overall livelihood strategies how land reform is one
input into wider livelihood strategies – or to theorise the
relationship between the two. As a result, impact studies,
which would investigate changes over time and determine
whether these can be attributed to land reform, have not
been possible.
Community Agency for Social
Enquiry case studies
The most substantial source of qualitative information on
the outcomes of rural restitution claims to date is the audit
conducted by the Community Agency for Social Enquiry
(CASE) in 2005 and 2006. This brought together a series of
provincial reports on a total of 179 rural restitution claims
that contained a development component (that is, land
restoration). At the time, 161 of these constituted the total
number of settled rural claims involving land restoration.
The remaining 18 claims studied were being prepared for
settlement (CASE 2006:1).
The CASE audit found a strong correlation between the
degree of support, from state and non-governmental
institutions, and the livelihood outcomes of a project.
Thorough facilitation of decision making by the community
around land use and management was found to be
essential, as was the establishment of steering committees
or sub-structures to manage land allocation and land use. A
perennial problem, though, was the reliance of communal
property association (CPA) or Trust committees on
representatives who might be skilled but unaccountable, or
who may pursue individual rather than collective interests.
Extensive reliance on volunteerism and the demands of time
posed substantial barriers to entry into decision-making
positions. Women, in particular, are often unwilling to take
on positions of leadership or face substantial obstacles to
doing so.
This research also identified variables that influence
livelihood outcomes over which the Regional Land Claims
Commission (RLCC) and the DLA have limited control,
specifically strong and accountable leadership:
[T ]hose communities with skilled and experienced leaders
… were more likely to attain their developmental goals
and were also more likely to establish positive relationships
with external service providers and/or partners (CASE
2006:99).
Another factor cited as promoting positive livelihood
outcomes is strong participation by members of claimant
communities in decision making. The creation of relevant
sub-committees or institutional structures with specific
areas of authority and responsibility for ‘day-to-day
management’ was found to increase participation in and
benefits from productive activities (CASE 2006:99). The
6
The Impact of Land Restitution and Land Reform on Livelihoods
was spent on a tractor instead of a borehole), a lack of
capital and extension advice to assist in new production,
and a lack of ready access to local markets. The most
significant barrier to accessing support – and even making
contact with officials who might be able to provide advice
and support – was the high cost of transport to the closest
town, Elliot. After grant funding was exhausted, the only
source of income to pay for transport of people to town and
the transport of production inputs were state pensions. In
the face of unmanageable input costs and a lack of water,
most beneficiaries had abandoned cultivation and instead
merely extended their grazing land. Here, in the absence of
cash benefits from land redistribution, the key livelihood
benefit was the reduced need for labour for herding as a
result of the fencing infrastructure on the new land.
A new insight from all three projects is the extent to which
obtaining farms for grazing livestock frees up the labour
of young boys from herding duties that are much more
onerous when livestock are kept on village land. Instead
of alternating between herding and school, boys are now
able to attend school full-time (Hall 2004:48).
The second type of project bore a closer resemblance to the
official vision of LRAD as a means of supporting ‘emerging’
farmers – individuals (all of them men) who had leveraged
higher grants by contributing their own assets, particularly
their existing livestock, and taking out loans of up to 70%
debt-equity ratio. While hoping to move into commercial
production, they faced problems of high input costs, little if
any extension services, insecure market access and, in some
cases, crippling debt. These beneficiaries were hiring labour,
and diversifying their own livelihood sources by investing
in other income streams. The dominant non-farm income
sources for beneficiaries in this study were small informal
urban businesses, such as taxi businesses and spaza shops,
which tended to outweigh the contribution of farming to
livelihoods, at least in the initial few years (Hall 2004).
While beneficiaries had received a valuable land asset, the
cost of obtaining and maintaining it was so high that they
had few resources left over for production. Even without
these costs, they would still struggle to make a profit for
the other reasons already stated. This survey therefore
highlighted the costs of sustaining ownership, in view
of the debt burdens incurred as a result of purchase and
start-up costs. These posed a major constraint on livelihood
improvements within the first few years of operation.
Whether or not the debt burden would become more
manageable could not be assessed, but appeared unlikely
given the multiple obstacles to profitable agricultural
production. In almost all the cases studied, small-scale
livestock owners had acquired land with the intention of
study recommended that further thought be given to how
state agencies can support community decision-making
processes, and suggests that there are few shortcuts to
community decision making. Where land reform projects
require large groups of people to form legal entities,
intensive facilitation of participatory decision making is
needed.
The CASE report expressed cautious optimism about the
potential for strategic partnerships and ‘special purpose
vehicles’ to manage commercial enterprises, where land
has been transferred to land reform beneficiaries who may
lack the resources and management expertise to continue
with existing operations (CASE 2006:99). However, it found
that the projects most likely to succeed were those in which
there is upfront support to beneficiaries in determining
whether they wish to engage in such a partnership – which
would include exploring alternatives and monitoring
of the partnership after its establishment. Without these
conditions in place, CASE argues, strategic partnerships
hold little promise of livelihood improvement.
Land Redistribution for
Agricultural Development (LRAD)
case studies
In 2004, the DLA conducted a national ‘rapid systematic
assessment survey’ on Land Redistribution for Agricultural
Development (LRAD) projects. This study investigated land
use and livelihood impacts on LRAD projects, most of which
had been established within the previous two years. PLAAS
conducted the fieldwork for this survey in nine projects in
the Eastern Cape, and produced a report which synthesised
the findings of these qualitative case studies (Hall 2004).
Two types of project were discernible within the LRAD study.
The first consisted of group-based projects, such as Gletwyn
outside Grahamstown, which drew together groups of poor
people with few resources, who had joined together to
form groups with the express purpose of gaining sufficient
grant funding to buy available properties and effect land
transfer. Similarly, the Masincedane CC, Dunmall-Larne
and Ramfontein CC projects outside Elliot consisted of
extended and neighbouring households from one village
who had come together to purchase farms adjacent to their
land within the former Transkei, in order to extend their
farming operations and to take advantage of improved
infrastructure – specifically fencing and boreholes. Among
these projects, most had failed to implement their business
plans due to a lack of infrastructure, training and capital.
Envisaged livelihood improvements from producing food
crops for local sale had not materialised due to a lack of
available water (in one instance, the balance of the grant
7
The Impact of Land Restitution and Land Reform on Livelihoods
scaling up their livestock production, but had also planned
horticultural production, specifically vegetable production,
with a view to earning a cash income with which to service
loans and/or to invest in further infrastructure on their land.
Instead, financial pressure on beneficiaries as a result of
acquiring the new land had altered their plans for the land,
leading them to abandon more capital-intensive production
in order to generate income with which to service debts.
District case studies
In 2005, the National Treasury commissioned a set of
studies on the impact of land reform which took as its unit
of analysis geographical areas rather than projects. District
studies were conducted in the Elliot area of Sakhisizwe
Local Municipality, which forms part of Chris Hani District
Municipality in the Eastern Cape (Aliber et al. 2006); in the
Theewaterskloof Local Municipality of the Overberg district
in the Western Cape (Kleinbooi et al. 2006); and in the former
Qwa Qwa area and adjacent commercial farming regions
in Maluti-a-Phofung district in the Free State (Greenberg
2006).
Most studies on land reform in South Africa to date have
taken the form of project case studies, household surveys
or policy reviews. The key contribution from these studies
is to shift attention away from production to the wider
distributional effects of land reform and in so doing, to
explore the economic case for land reform. Their findings
suggest that in regions where few land reform projects have
been established, the impact has been limited. Transferring
economic resources into the hands of poorer producers has
had little if any noticeable effects on the dynamics of the
local economy. In the short term, the major impacts have
been the displacement of farm labour, as new owners tend
to rely to a greater extent on unremunerated family labour.
Elliot
Of particular importance to researchers and policy makers
concerned with land reform and its impact is the Elliot
magisterial district in the Eastern Cape, which is the only
part of the country to date where land reform is on track
to transfer the national target of 30% of farmland, through
all aspects of land reform. As of 2005, more than 15% of the
farmland in this area had been transferred from white to
black ownership through land reform. The boundaries of the
Elliot magisterial district are nearly coterminous with those
of the current Sakhisizwe Local Municipality. Sakhisizwe
includes former white commercial farming areas, but also,
in the south, a relatively small area of the Cala magisterial
district which was part of the former Transkei (Aliber et al.
2006). The residents of the former Transkei who border on the
commercial farming areas, and typically own livestock and
cultivate food for their own consumption, have expressed a
demand for access to more land to expand their operations,
and seek, by participating in the land reform programme,
to acquire secure tenure to land, to gain access to water
and fencing to reduce the labour requirements in livestock
husbandry, and to reduce animal damage to crops (Hall
2004; Ncapayi 2005). In these commercial farming areas,
the research found a drop in production alongside modest
improvements in the livelihoods of those who now own and
work the land (Aliber et al. 2006). The study recommended
that a focus on the livelihood impact of land reform in Elliot,
where land reform is relatively advanced, needs to focus not
only on those who are direct beneficiaries gaining access to
land and livelihood resources, but also on an interrogation
of the wider impact of land reform on local economies
– something which is not yet feasible in many other parts
of the country. This broader type of impact assessment
draws attention to the implications of land reform for
the livelihoods of those who are not direct beneficiaries,
including current and former employees on redistributed
and restored land, and the wider population (Aliber et al.
2006).
Theewaterskloof
Kleinbooi et al. (2006) show that in the Theewaterskloof Local
Municipality in the Overberg district, where deciduous fruit
and wine are the dominant agricultural sectors, land reform
has not led to any major changes in land use and only very
modest contributions to livelihoods. Only twelve projects
have been established in the area, and of these only two
have involved the transfer of land ownership. The rest have
been farm worker equity schemes and tenure projects for
farm workers. No land restitution has taken place. Here, the
impact on beneficiaries has been ‘limited, but not negligible,
largely taking the form of improving quality of or tenure
rights to housing on farms:
Farm worker equity schemes – promoted by a small group
of private consultants – have emerged almost by default
as the principal means by which poor beneficiaries can
gain a stake in high value agriculture while avoiding the
politically (and financially) thorny issue of actual land
redistribution. The evidence in this study suggests that
equity schemes can take a variety of forms, but deliver few
benefits (Kleinbooi et al. 2006:63).
Dividends, the major benefit anticipated in equity schemes,
have been paid out only once, and in only one scheme.
Instead, in cases where profits were declared, these were
used to service loans or were reinvested into production
(Kleinbooi et al. 2006). Indirect benefits consisted of
improved compliance with basic conditions of employment
and minimum wages, as stipulated in national regulations,
8
The Impact of Land Restitution and Land Reform on Livelihoods
of farming support services such as marketing support and
market information, credit and production inputs by state
agencies was withdrawn as part of the broader process
of agricultural deregulation (Greenberg 2006). The major
constraint for black farmers was a ‘lack of material resources
to reduce vulnerability and enhance resilience’ (Greenberg
2006:7). The study concluded that grants were ‘insufficient
in and of themselves to have positive results’. Observable
problems in land use in the post-transfer phase could
be traced to a basic problem with the grants themselves.
Reliance on grants for the purchase of land and initial start-
up costs led to projects that were unworkable in that the
land was insufficient or inappropriate, or that new farmers
were indebted (Greenberg 2006). These cash-strapped
landowners now rely heavily on the unpaid labour of family
members and even non-family members. Those who were
paid were predominantly casual or seasonal employees, as
in the wider farming sector, and wage levels were typically
in the region of 50% of the minimum wage rates stipulated
in the sectoral determination for agriculture (Greenberg
2006).
These three district-level studies have focused attention on
a new and relatively unexplored perspective on the impacts
of land reform, namely the impacts on the dynamics of
local economies, including both beneficiaries and non-
beneficiaries.
but also in some instances pension schemes, funeral plans
and healthcare (Kleinbooi et al. 2006). Although there was no
evidence of new jobs (that is, new livelihoods) being created
as a result of these schemes, there were indications that, in
a context of fairly widespread job shedding, some jobs had
been preserved as a result of the schemes – though many of
these were casual and seasonal jobs, providing insecure and
erratic income to poor households.
For land reform to have a more substantial impact on
livelihoods and the local economy, new ways will have to
be found of redistributing land and supporting emerging
farmers. This will, in turn, require new ways of interpreting
land reform policy, that promote land access over land
ownership, at least in the short term, self-employment over
share equity schemes and small-scale, labour intensive
production for local markets over large-scale, capital-
intensive methods for export (Kleinbooi et al. 2006:67).
Maluti-a-Phofung
In the Free State, a study of the Maluti-a-Phofung Local
Municipality found that redistribution of land acquired under
the former Qwa Qwa administration, as well as privately-
owned commercial farming units, had allowed the growth of
herds of cattle and, in this way, supported accumulation by
some black households (Greenberg 2006). Constraints faced
by new landowners included escalating production costs,
particularly the purchase of input items, while the provision
Photo: Marc Wegerif
9
The Impact of Land Restitution and Land Reform on Livelihoods
4. Livelihoods impacts in rural
restitution projects
The following section provides a brief summary of
key findings from diagnostic studies of six community
restitution claims settled by means of land restoration,
conducted by the Sustainable Development Consortium
during 2006. It focuses on the structure of the projects, how
certain key choices came to be made, and what implications
these had for the livelihoods of intended beneficiaries. Most
of these projects are still at an early state of implementation,
and very limited data are available on benefits, at either a
community or a household level. Wherever possible, the
impact on livelihoods is quantified, but in most instances
this is not possible due to data constraints.
Bjatladi
In Limpopo, a restitution claim on the Zebediela citrus
farm – widely described as the largest citrus producer in
the southern hemisphere – led to the establishment of a
strategic partnership between the Bjatladi CPA (the claimant,
and now owner of the 5,903-ha property), the Zebediela
Workers’ Trust, and a strategic partner called Henley Farm
Properties (Pty) Ltd. Together, these three entities comprise
the operating company, in which Bjatladi CPA owns 30% of
shares, while the other partners, the Workers’ Trust and the
strategic partner, own 15% and 55% respectively. Only the
strategic partner was required to buy shares; the Agriculture
Rural Development Corporation (ARDC) transferred
shares to the others. In terms of the restitution settlement
agreement, the strategic partner will transfer 1% of the total
shares to the Bjatladi CPA each year for five years, until it
owns only 50% and the CPA has 35%.
The land was transferred in title to the claimant community
but, as part of the Settlement Agreement, was subject to a
15-year lease agreement with a rental set at R1 million per
annum. When the 15-year lease expires, the strategic partner
is to transfer all its shares to the CPA. While ensuring a source
of cash income for the CPA, this agreement precludes other
potential non-financial benefits that might have been
gained through direct use of the land by members of the
claimant community.
The diagnostic study conducted by PLAAS highlighted the
limitations on the community’s use of the restored land:
Although not stated in these exact terms, the Settlement
Agreement implies that the activities entered into with
the strategic partner constitute the only permissible use
to which the land can be put, and that access to land by
members for other purposes such as cultivation, grazing
rights or residential purposes fall outside the scope of the
Settlement Agreement, and thus outside the terms of the
restitution award (Bjatladi Diagnostic Study:16).
Apart from rental income, which is set well below a likely
market rate, the principal benefit to the community will be
in the form of a share of profits, which implies a considerable
degree of risk. Like most commercial farms, Zebediela
‘doesn’t have a profit history. At best, it has a break-even
history’ (Erasmus, quoted in Bjatladi Diagnostic Study:24).
The actual livelihood benefits for members of the claimant
community at Zebediela can be summarised as follows:
Dividends from shareholding: Apart from a special
bonus of R500 per household at the time of the
settlement, no dividend has yet been paid out by the
operating company, reflecting the minimal profitability
of the commercial operation.
Rental income: The R1 million per year payable by the
operating company to the CPA, which, if paid out to
423 households consisting of 1,573 individuals, would
work out to a nominal amount of R636 per individual
per year. However, to date it has not been paid out but
reinvested in the operations of the company.
Employment for some claimants: This cannot be
considered a direct benefit of restitution as such
employment predates the settlement of the claim and,
in the three years since, there has been no increase in
employment. The only exception is a small number of
positions in management that have been created for
community members.
The limited livelihood impact thus far arises from the way
in which the project was structured, with the strategic
partnership eclipsing other possible land uses.
The settlement agreement and subsequent developments
at Bjatladi have focused narrowly on the citrus estate and
the related activities, all of which fall under the effective
control of the strategic partner. As a result, little or no
attention has been paid to the wider land needs of the
community, such as land for housing and for small-scale
food production (Bjatladi Diagnostic Study:24).
Although the total value of assets transferred from the state
to the claimants – in the order of R78.9 million – the project
10
The Impact of Land Restitution and Land Reform on Livelihoods
pursued from the Klipgat CPA. In return, the claimants have
been ceded a 26% share in the Etruscan company. However,
it appears that the CPA is liable to pay market price for 11%
of the shares, apparently meaning that the company only
ceded 15% of total ownership to the CPA in return (together
with a small rent) for using its land. Payment for the balance
will come out of income earned by the CPA, but members
were found to be unaware of how much this would amount
to, or how much, if any, had already been paid off.
The livelihood benefits observed at Klipgat were:
Rental income: The CPA receives a cash income of
R6,000 per month, as a ‘surface access fee’ via the
mining company, Etruscan, but which is actually paid
by its subsidiary Gothoma Diggings. There appeared
to be plans in place as to how this money would be
utilised by the CPA, including distribution of it to its
members.
Additional payments to the CPA: An amount of
R17,000 per month is supposed to be paid to the CPA
by Etruscan in order to support community projects,
but it appears that little of this has been paid over to
date.
Access to natural resources: The CPA members have
access to some grazing land and to clay (a by-product
of the mining activity), which they use for brick-
making.
Employment: Five community members, of whom
one is a woman, have gained employment on the
mine, far below what was originally promised to the
community.
Etruscan promised many benefits and undertook to provide
support in both cash and kind to the community. Most
of this was not quantified and has not been forthcoming.
Essentially, the agreement identified Etruscan as a source
of patronage in areas of the community’s development.
Community leaders interviewed appeared not to be aware
of most of the undertakings made by Etruscan, nor how
these could be enforced.
In terms of this agreement, substantial payments were
due to the claimants: R1,619,000 in the first three-month
period, as dividends from the diamond mining. The CPA,
however, could not confirm whether it had received any of
this and, if so, what had happened to the money. A lack of
official oversight of the implementation of the settlement
agreement – by the RLCC or others – has allowed the mining
company to minimise its obligations, while a lack of effective
financial management or accountability within the CPA
has created potential for personal enrichment by those in
positions of authority. If monies due to the CPA have in fact
has produced barely any livelihood impact for beneficiaries,
other than those able to enter into management. Profits
appear unlikely to materialise on any substantial scale, and
rental income is being reinvested in the operating company
as a step towards eventual takeover from the strategic
partner. In essence, the community has been granted
a valuable asset that is unlikely to generate significant
benefits in the short term. Benefits, if they are to materialise,
are likely to do so only after the expiration of the current
15-year contract with the strategic partner. Although the
Bjatladi case has many unusual features – notably the fact
that it was owned by the state, and the strategic partner
was already involved in running the estate on a contract
basis prior to the settlement of the claim – a similar model
of strategic partnership, with no direct access to land for
community members, has been proposed for other claims
on high-value agricultural land. It is likely that many of the
limitations on livelihood benefits identified at Zebediela are
to be replicated in such cases.
Klipgat
In the North West province, a community restitution claim
at Klipgat, or Bakwena ba Mare a Phogolo, was settled in
2000, and a CPA established as the legal landholding entity.
As with Zebediela, Klipgat is a highly dispersed, and starkly
differentiated, community:
The capacity and qualifications of the community
members of Klipgat are diverse, with some members
being professionals such as doctors and lawyers while
others are illiterate and work as manual labourers. Many
of the members remain unemployed (Bakwena ba Mare a
Phogolo Diagnostic Study:6).
In terms of the Settlement Agreement, the claimed land
was restored to the CPA and then leased out to a mining
company, which is extracting alluvial diamonds, while
some claimants have settled on the rest of the land. Here,
beneficiaries have diversified their livelihoods and are
engaged with three projects which arose out of the claim
process – a piggery, brick-making and an arts and crafts
(beading) initiative – as well as grazing their own livestock
on the new land. Thus far, it seems that the mining is the
aspect of this multi-dimensional project that has had the
least impact on beneficiaries (other than removing this
land from their own potential use). Although the mining
enterprise would appear to be highly lucrative, the CPA has
not received any dividends from the share in the mining
operation that it reportedly received as part of its lease
agreement. More worryingly, the community itself, including
its leadership, is not aware of the terms of the deal to which
it had agreed. Etruscan, the owner of the mineral rights,
leases the land on which the mining operations are being
11
The Impact of Land Restitution and Land Reform on Livelihoods
been paid to it, it is either unaware or unwilling to declare
its receipts, and has not disbursed funds to its members, nor
reinvested income in the development projects pursued by
its members.
At Klipgat, claimants appear to have little information,
understanding and ownership of the agreements they
or their representatives have entered into. What is also
apparent is that they received inadequate independent
advice and support in negotiating and enforcing the terms
of their agreement with Etruscan.
The relationship between the mining company, which
has mineral rights on the community’s land, and the
CPA remains an unequal one. In addition, the terms and
conditions of the agreement between the two parties
are not well defined or understood by the community.
The current agreement and the operations of the mining
company have the potential of leaving the community in a
very vulnerable and exploited position (Bakwena ba Mare
a Phogolo Diagnostic Study:18).
The Klipgat case indicates that, even where there exists the
potential for substantial livelihood benefits, a dysfunctional
CPA committee and a lack of effective support and follow-
up from the RLCC and other branches of government can
prevent this from being realised.
Dwesa-Cwebe
On the Wild Coast in the former Transkei, a co-management
agreement was concluded in respect of protected land that
forms part of the Dwesa and Cwebe Nature and Marine
Park, an important biodiversity hotspot. This was the first co-
management agreement in respect of a restitution claim on
a protected area in the Eastern Cape, and the second in the
country, after the Makuleke claim was settled in the Kruger
National Park. In return for waiving its claim to return to the
land, the Trust representing the claimants was compensated
with an initial upfront payment, and the Trust is entitled
to receive ongoing payments over a period of 21 years, in
lieu of its rights to the land which remains part of the park.
Eastern Cape Nature Conservation paid R2.1 million upfront
to the Trust on settlement of the claim, for the lease of the
land for 21 years. A further approximately R12 million was
earmarked by the RLCC for the claimants, in the form of
discretionary and settlement planning grants.
Although the claim was settled in 2001, five years later the
transfer of the claimed land inside and outside the reserve
has not taken place. Land outside the park that forms part
of the claim has not gone through any changes in land
use, and continues to be communal land, under livestock
production and cultivation of vegetables, mostly for own
consumption. The members of the claimant community
mostly reside nearby on communal land. A further unit of
land surveyed as part of the claim includes the Haven Hotel
and resort, which continues to be operated as a commercial
concern, for which the Trust is to receive compensation. On
the land occupied by the beneficiaries, though, ‘There has
also been no discernible development beyond reticulated
water and a few public works projects’ (Palmer et al. 2006:4).
This suggests that no more development has happened
as a result of restitution than in adjacent areas that are also
communal areas of the former Transkei, which have been
prioritised as part of the Extended Public Works Programme
(EPWP). There appears to be an untapped potential for
cultivation, with arable land being used for extensive
livestock grazing. Reasons for the limited use of arable fields
include crop damage by livestock due to poor fencing;
absence of mens labour for livestock herding; absence of
children’s labour, as children are now in school; and the high
costs of ploughing and inputs (Fay & Palmer 2002:164–5,
cited in Palmer et al. 2006:14). However, in some regions,
there was an increase of cultivation, though this could not
be attributed to the claim itself as no change in land access
or ownership had been effected.
The observed changes in beneficiary livelihoods between
1998 and 2001, immediately prior to the claim being settled,
were:
Increase in the percentage of residents who receive
state social grants, though this may well indicate
improved access rather than a decline in other socio-
economic indicators.
Declining remittances from household members
earning cash incomes elsewhere. Again, this may
indicate reduced reliance on migrant work, or loss of
these sources of income for other reasons (job losses,
HIV/Aids, etc.).
Reduced reliance on crop sales as a source of
livelihood.
Increased reliance on craft sales as a source of
livelihood.
Increased access to occasional work (Palmer et al.
2006:35).
The Dwesa-Cwebe case study demonstrates that land
reform is happening in a context where livelihood
strategies are changing anyway, in response to pressures of
HIV/Aids and the loss of remittance incomes. It also shows
that ownership by itself does not bring livelihood benefits,
if this is so circumscribed that claimants may not use their
new land either for cultivation or grazing or to transact
in order to secure a stream of revenue. This case clearly
illustrates the need for development of a comprehensive
12
The Impact of Land Restitution and Land Reform on Livelihoods
institutions, including grants from the Department of
Environmental Affairs and Tourism, ahead of the claim
being settled. This approach has delayed settlement of the
claim, but has ensured that Covie is written into the local
integrated development plan (IDP) and the municipality’s
spatial development framework.
Ensuring all the pieces of the development puzzle
are in place before transfer of land is CRUCIAL. All
stakeholders must be tied in to fulfil their mandates
within land redistribution and rural development. As
state departments are tied in so they are able to identify
budgets, technical expertise, land and other resources,
easing the responsibility on cash-strapped and struggling
local authorities. It is our experience that departments are
thankful for an opportunity to work in an integrated and
holistic manner (Conway & Xipu 2006:5).
The Covie land claim is backed by exceptionally strong
financial and material support from government. All
signatories to the MOU undertake to report on an
annual basis on their progress towards achieving their
commitments. However a review mechanism will have
to be established to do ongoing monitoring of the Covie
development to make sure proposals and business plans,
come to fruition (Covie Diagnostic Study).
Although the claim is not settled and, thus far, no livelihood
benefits are evident, the model adopted in the Covie claim
is intended to avert problems of institutional coordination,
funding and post-transfer support, and to yield benefits that
are guaranteed by legal commitments signed by relevant
authorities.
eMpangisweni
In KwaZulu-Natal, at eMpangisweni, a land claim on several
farms by a dispossessed community under Chief Zondi, led
to the acquisition and consolidation of several farms and
portions of farms. In terms of the 2003 Settlement Agreement,
these commercial farms would continue to be operated
as commercial entities, while restored land that had been
unused and was not suited to cultivation would be used for
the establishment of three settlements. However, claimants
moved onto the land before formal settlements could be
established, in a more scattered pattern of settlement than
had been planned. This has made the formal establishment
of settlements, and provision of services, difficult. In addition
to the existing, and already occupied, houses of farm workers
and labour tenants, claimants have built their own homes
rather than wait for the provision of formal settlements
which have not, as yet, materialised.
The current land use involves a mix of commercial
production, for which some claimants are employed as
strategy for livelihoods development in the context of
restitution, especially where cash is available upfront, to be
accompanied by close attention to detail at all stages of the
implementation process.
Covie
In the Southern Cape, the Covie community has laid claim
to part of the Tsitsikamma indigenous forest reserve and
coastal plains. The restoration of the community’s access to
the sea and to a fishing livelihood forms part of the claim.
The Covie land had comprised a commonage – where
residents cultivated vegetable allotments – and common
grazing land. Residents had been independent small-scale
farmers, but also worked at times on neighbouring white-
owned land and on the state-owned forest land now under
the control of the Department of Water Affairs and Forestry
(DWAF). The development plan now envisages the transfer of
title to individual allotments to households, and the transfer
of the remainder of land, to be used in common for grazing,
to a legal entity comprised of all claimant households.
It is not possible to draw conclusions about the outcomes
of this claim since, although the claim was lodged in 1996
and investigations towards its settlement have been
ongoing since the late 1990s, as of late 2006 it was not yet
settled, and claimants have not yet returned to the land.
Nevertheless, a key innovation at Covie was the decision
by the claimants, together with the RLCC and the Southern
Cape Land Committee, to delay settlement of the claim until
development planning was complete and resources for
implementation of this plan were committed. In view of past
experiences where settled claims had poor results due to
lack of post-transfer support, the RLCC decided to prioritise
development planning, and delay settlement. Its specific
goal in ensuring that plans are in place prior to settlement
and transfer is that a range of key agencies, specifically the
district and local municipalities, have specified Covie in
their development plans and earmarked resources for this
purpose. This led to a partnership between the claimants
themselves and the variety of institutions and service
providers that will play a role in their future development,
formalised in a Memorandum of Understanding (MOU).
Thus the Covie claimant committee resisted signing the
Section 42D opting to ensure a Development Plan with
appropriate institutional arrangements and the necessary
implementation funds and skills were in place before any
transfer of land (Conway & Xipu 2006:6).
Signatories to the MOU formed the Covie Steering
Committee to drive an integrated process of development
planning to secure funding commitments from relevant
13
The Impact of Land Restitution and Land Reform on Livelihoods
wage workers, and own production by claimants who
have settled on the land. These claimants are grazing their
own livestock and cultivating food crops. Commercial
production is supported by the balance of the restitution
grant (R600,000 was available for the first two years), as well
as some direct support from the provincial Department
of Agriculture and a loan from Ithala Bank. Here, the Trust
employs a farm manager on a contract basis. A small portion
of the land has been leased out to a company, Bio-Swiss, to
plant green beans, in return for a rental income and access
to wage employment for some. Even so, members engage in
land uses for basic livelihood purposes, in the face of limited
infrastructure and support.
Members have access to grazing land and for cultivating
their own crops. Each household has access to ‘piece lands
for their own cultivation but these are not always near
to where people actually live. Many of these do not have
access to the available irrigation infrastructure either. The
community has access to approximately 22 ha of high
value land to use for their own purposes (eMpangisweni
Diagnostic Study:17).
Despite attempts by the RLCC to get the abaQulusi Local
Municipality to address the need of the claimants to acquire
services on-site, this support appears not to have been
forthcoming.
It was agreed that the abaQulusi Municipality would assist
with the development of the restored land and would help
the claimants in terms of applying for subsidies through
the Department of Housing. However, from all accounts, it
seems that the municipality has shown very little interest in
engaging with the project, with party political differences
being cited as the underlying reason (eMpangisweni
Diagnostic Study:19).
Land uses thus combine leasing-out land, the operation
of a commercial enterprise with a hired manager and
wage workers, and an informal pattern of settlement and
production for own use under the direction of the traditional
leader. Although claimants planned to seek training from
CEDARA Agricultural Training College, this has not yet
happened. Instead, for many, the first priority is adult basic
education and training, specifically literacy and numeracy,
prior to agricultural training.
In the absence of financial benefits in the form of dividends
from commercial production (the commercial farm has yet
to show a profit), livelihood benefits are derived in large
part by individuals using land allocated to their households
for their own use. At the time of the study, there was no
functional legal entity and the Trust had not held formal
meetings. Instead, authority over land administration had de
facto reverted to the iNkosi. Allocation of substantive rights
has taken place, not through the formal operations of the
Trust, but according to customary practices, and through
the traditional authority.
In practice, members of the Zondo tribe or other residents
who are not members enjoy the same rights as the
members of the Trust and have the right to a residential
site, arable site, grazing and the use of natural resources
on the property. Rights to arable land may be reallocated
by the trustees and/or Inkosi, if they are not used. In
general, the rights are issued by the Inkosi in terms of
verbal agreements made at the iBandla (tribal council)
(eMapangiswene Diagnostic Study:12).
Because the project involves a business entity that is being
run commercially by a contracted manager and is providing
employment, the focus of pre-settlement planning and
post-settlement support has been on this aspect, rather
than on the wider livelihood needs of the claimants. These
wider needs have been pursued largely in an ad hoc and
unplanned way – sometimes overtaking slow planning
processes, as is the case with the construction of informal
housing on the land. Although the land was transferred in
early 2004, the study has found that no needs assessment
of the claimants has been conducted, in order to determine
what broader development plan will be put in place to
support the aspects of the project that fall outside the
commercial operation of a portion of the land.
Groenfontein
The Groenfontein-Ramohlakane claim in the Middelburg
district of Mpumalanga was settled in September 2003,
the beneficiaries being approximately 3,200 people in 400
households. Three years later, no grants had been paid out,
and it appeared that no land-use planning had happened,
nor was there external support of the unplanned agricultural
activities that community members had initiated on the
599 ha of land that had been restored to them. Despite
the presence of a borehole and a natural spring, the land
is suited only to dryland cultivation of staple crops, notably
maize and soya bean. Some beneficiaries were found to be
producing, but with no external support – despite rather
than because of a developmental restitution process. The
Groenfontein Diagnostic Study described the case as ‘an
example of a settled claim that still remains unplanned and
unsupported long after the land has been transferred to the
claimant community’ ( Groenfontein Diagnostic Study: iii).
Members of the claimant community were allocated
Restitution Discretionary Grants and Settlement and
Planning Grants totalling R1,776,000 – more than the total
cost of the land – which would be used ‘for resettlement,
14
The Impact of Land Restitution and Land Reform on Livelihoods
joint development and running costs of the farm and shall
not be paid to the individual households’ (Groenfontein
Diagnostic Study:9). Although these figures are cited in the
Settlement Agreement signed three years ago, the grants
have not been paid out because the verification of claimants
is still, to date, not complete.
Following the settlement of the claim, the land was leased
to the former owner, Mr Steenkamp, for a year, and this
was extended for a further 13 months, to September 2005,
at a rental of R5,000 per month. If it had been paid out to
members, this income would have amounted to just R2 for
each community member per month. The claimants accused
the former owner of asset stripping during the period of
this lease, though this could not be verified as there had
been no inventory of assets on the farm at the time that the
sale agreement was concluded. A lack of faith in the ability
of the government to provide the necessary support led the
community to take this unusual step of embarking on what
they called the ‘Risk Project’. The community reports that:
They have received very limited support and say they have
lost faith in further support being provided to them, and
are therefore attempting to rely on their own sources of
funds and expertise (Groenfontein Diagnostic Study:14).
The Groenfontein Trust called for community members
who were interested in farming to express their interest. Of
the 3,200 members, eight expressed an interest and formed
a group called the Umnotho Agricultural Development
Project (UADP), which leases the land from the Trust at the
same rental as was paid by Steenkamp. Essentially, then,
the Trust switched from leasing the entire property to the
previous owner, to leasing it to just eight of its members
(0.25% of its total).
The intention was that this group would independently
seek assistance from various financial institutions and
private sector and non-governmental service providers so
as to ensure that the farm would be used productively and
create employment for the community. The project plan of
the UADP indicates that, ‘such a decision was taken after
realising that the conventional route of soliciting assistance
from government institutions would take time, due to
lengthy bureaucratic processes which the community has
already experienced in dealing with the Land Commission
(Ramohlakane-Groenfontein Community Agricultural
Project proposal, cited in Groenfontein Diagnostic
Study:12).
The RLCC’s own explanation corroborates the community
view that support has been negligible. As the RLCC’s staff
responsible for this claim reported:
The claimants have basically received no post-settlement
support. No business plan has been done. We need to finish
claimant verification so that we can do the business plan.
Photo: Marc Wegerif
15
The Impact of Land Restitution and Land Reform on Livelihoods
We couldn’t use Section 42C for financing the development
needs because that Section is kept only for developments
once the business plan has been done. No real effort from
the side of the RLCC has been made. We haven’t been
aggressive enough to assist or to get an agricultural
economist to assist. We tried to get a CASP [Comprehensive
Agricultural Support Programme] application but made
no headway because CASP is being redirected to ‘anchor
projects’ in accordance with ASGISA [Accelerated and
Shared Group Initiative for South Africa] – funds are rather
going to big projects that create employment (Interview,
May 2006, cited in Groenfontein Diagnostic Study:14).
The local agricultural official responsible suggested that it
would be important to do a skills audit and a needs analysis
and establish the potential strengths of the members and
group them accordingly. However, at the time of the study,
two and a half years after the claim was settled, this had not
been done.
The lack of developmental activities on the land is leading
to land degradation and loss of agricultural potential.
Besides leasing the land back to the previous owner until
mid-2005, no development activities have been undertaken
on the land by the claimant community. The land is fast
becoming neglected and overrun with weeds and alien
plants, thus making it more difficult for productive activities
to be undertaken in future (Groenfontein Diagnostic
Study:18).
The Groenfontein case study demonstrates that it is not
merely an absence of post-transfer support, but also of pre-
settlement planning, which led to the failure of this project,
in the first three years after settlement, to generate any
livelihood improvements for claimants. Instead, claimants
pursued the lowest risk option of leasing out their land, first
to the former owner, and later to a small group of its better-
off members, bringing about a small income stream to the
Trust, but no tangible benefit for claimants. The lack of a
clear post-settlement strategy on the part of the RLCC has
not only prevented the community from moving ahead with
their plans, but has been an obstacle in obtaining support
from other government agencies, such as the provincial
Department of Agriculture and the local municipality.
16
The Impact of Land Restitution and Land Reform on Livelihoods
5. Conclusions: Emerging trends
in livelihood impacts
The most striking finding from the case studies is that
the majority of beneficiaries across all the restitution
projects have received no material benefit whatsoever
from restitution, whether in the form of cash income or
access to land. Many have not moved onto the land, either
because they are restricted from doing so (as in the case of
leasing out of land, or as a result of strategic partnerships),
or because post-transfer support has not been forthcoming
and land-use plans are delayed. In the case of Groenfontein,
eight members of a claimant community of 3,200 benefited
by being able to access their land, but only by paying a
market-related rental. Other members of the community
are unlikely to gain direct access to the land, and are
unlikely to benefit much from the rental income. Similarly,
in the case of Bjatladi, most beneficiaries had not benefited,
despite the commercial ‘success’ of the enterprise. Again,
a rental income had not been passed on to members, nor
would it have made a great material contribution to their
livelihoods, given the size of the income in relation to the
size of the group. Instead, a small sub-group of community
members has benefited through access to employment,
as part of the strategic partnership. It appeared that more
highly educated members, and men, are most likely to reap
these benefits.
Even where land is being used, dysfunctional legal
entities may prevent members from realising these as
livelihood benefits. In no cases where CPAs or trusts had
received income from leases had this been paid out to
members. In the case of Klipgat, the CPA was not able to
say what had happened to the money allegedly paid by a
mining venture in return for access to the land. Members
had not been able to hold these institutions to account.
No official agency has taken responsibility for capacitating
the CPA committee, empowering the members to hold the
committee accountable, or overseeing implementation of
the Settlement Agreement.
This study suggests that most land reform projects
can be categorised within a simple typology. This study
highlights the type of project in which most participants
do not settle on the land, but stay where they are, pending
either (a) a coherent settlement and development process
which could provide sufficient infrastructure and assistance
to enable them to withdraw from existing livelihood
activities, or (b) establishment of a commercial enterprise
by other participants or through a strategic partnership,
which could generate either employment or income in
the form of dividends to members. Where participants do
settle on the land, two general patterns can be discerned. In
some projects, participants settle on the land and engage
in production largely for their own consumption needs,
producing staple crops and vegetables and maintaining or
extending their livestock. In others, participants establish
their own homes and engage in production largely for
their own consumption needs, alongside joint activities
undertaken as a group. These variations may reflect differing
priorities of participants or, more commonly, result from the
constraints and pressures under which they operate.
The failure of post-transfer support to materialise, even
where this is specified in project plans, presents an
overwhelming obstacle to production and marketing.
The case studies all demonstrate a lack of support
for independent production by members of claimant
communities, particularly where members aim to produce
for non-commercial purposes. This is often the outcome of a
lack of land-use planning prior to transfer, which in turn may
be due to the absence of an initial assessment of needs, skills,
assets and priorities. This finding supports the observation
by Lahiff and Cousins (2005:129) that ‘limited post-transfer
support, and the failure to integrate land reform with
a wider programme of rural development, has severely
limited [the contribution of land reform] … to livelihoods
and to the revival of the rural economy’. They propose that
land reform focus not only on deracialising land ownership,
but also on the ‘redistribution of land and other assets
from the large scale to the smallholder sector’ and the
reform of agricultural markets. With limited post-transfer
support, and where land reform offers few opportunities
to pursue multiple livelihoods, claimants have tended to
engage in a strategy of ‘straddling’. Rather than move their
entire households, there is a tendency to maintain existing
households and livelihoods, moving family members and
resources between their existing and new homes (Andrew
et al. 2003). This may improve their livelihoods, but is
essentially a strategy of desperation which drains scarce
resources, not least in transport costs.
The failure to define and enforce post-settlement
arrangements, and the roles of different institutions, has
direct consequences for livelihoods. Settling claims and
transferring projects without having clear post-settlement
plans and institutional commitments in place leads to
17
The Impact of Land Restitution and Land Reform on Livelihoods
uncertainty, not only for beneficiaries but also on the part of
those institutions, which are not under any compulsion to
provide support. As people’s own activities diverge further
from plans, provision of planned post-transfer support
becomes less likely. The absence of a clear lead agency
inhibits intervention from other institutions. For instance,
from these case studies, it is apparent that the provincial
departments of agriculture look to the RLCC to take the
lead in intergovernmental coordination and in galvanising
its support.
Improvements in beneficiary livelihoods depend not
merely on the amount of support, but the degree
to which this is integrated and strongly managed by
a lead institution. A crucial role can be played by service
organisations, particularly NGOs, as in Covie, in facilitating
community discussions and decision making. In this regard,
delaying the signing of the final settlement agreement until
firm settlement plans are in place and agreed is critical.
Direct access to land to allow beneficiaries to graze their
own livestock and to cultivate individual fields for their
own benefit – even where this is alongside commercial
production – is the most secure source of improved
livelihoods. The case studies demonstrate the central
importance of access to land for self-provisioning. Where
people are deriving livelihood benefits, this is often because
of the initiative of those who have some resources and few
alternative opportunities, and are not only willing but also
able to invest their labour in using land by themselves
to support their households rather than waiting for
production, infrastructure, training or marketing support
from external sources. Such non-financial returns can be of
particular importance in the early stages of resettlement,
especially for poorer households, in the form of improved
nutrition through consumption of own production, reduced
cash expenditure on food as a result of consumption of own
production, improved tenure security, housing and access
to services. These non-financial benefits are only realisable
where direct access to land is possible.
Strategic partnerships represent high risks for
claimants whose only livelihood benefit is to come
from a combination of rental and dividend payments
– which often are not forthcoming. Strategic partnerships
generally privilege continuity of production over livelihood
benefits for beneficiaries. This review demonstrates that
the degree of intervention that is needed to counteract
predictable power imbalances in negotiations between
highly unequal partners has been severely underestimated:
in the context of strategic partnerships as in the cases
of Bjatladi and Klipgat; in co-management agreements
in protected areas as in the case of Dwesa-Cwebe; and
where beneficiaries lease their land out as in the case of
Groenfontein. The promise of jobs often consists in merely
maintaining existing employment (not always of the same
people who are the restitution claimants), and is also often
irregular, uncertain and seasonal. It is precisely where land
is to be leased out, or subject to a strategic partnership, that
securing a basic source of land-based livelihood is most
important.
While there are some notable exceptions, projects have
tended to conflate the unit of ownership with the unit
of management and of use. Legal entities established as
landholding bodies, such as CPAs and Trusts, have tended
to take on tasks of managing and using land. This has
contributed to situations where members of claimant or
beneficiary groups are not able to start using their land,
pending permission from committees, who insist on waiting
for post-transfer support. Most restitution projects have
tended to reproduce the Settlement Land Acquisition Grant
(SLAG) model, whereby a legal landholding entity such as
a CPA or a Trust also serves to manage the land and any
enterprises on the land. Problems arise from the translation
of joint ownership into joint production. In the absence of
strong substantive rights of members, and in the absence
of external support for production, members of some
projects have engaged in informal sub-division of the land
into household plots. This sub-division may take the form of
negotiated allocation by a group or self-help by those with
the means and interests to force their claims to a plot. The
evidence suggests that, while some land reform projects
initially attempted the collective production envisaged in
business plans, this often did not get off the ground and
collapsed into household or individual production. The
challenge remains to support legal entities to manage their
holdings, to allocate rights for individual or household-
based use, and to equitably distribute the benefits of
collective enterprises (including strategic partnerships)
among their members.
Non-implementation of development plans is wide-
spread and is one reason why the livelihoods of
beneficiaries do not improve. The study found a large fall-
off between plans and implementation, particularly with
respect to settlement development and small enterprises.
Some common reasons for non-implementation are that
these plans were overly ambitious, risky, or involved a
number of agencies without clear primary responsibility
for coordination. Livelihood dividends cannot be expected
if plans are not implemented, as seen in Dwesa-Cwebe.
However, non-implementation also leads to survivalist
strategies and self-help by beneficiaries who, as at
eMpanigsweni, may derive some benefits from unplanned
18
The Impact of Land Restitution and Land Reform on Livelihoods
settlement, cultivation and grazing activities – though they
may be limited by unclear and insecure tenure rights and
a lack of support for production or marketing, which will
constrain land-use options.
There is a powerful impetus towards joint activities in
land reform projects, and this frequently contributes
to tensions among beneficiaries and failure of
productive activities. This is in contrast to the pattern of
individual cultivation, as widely practised by poor people
in the communal areas. This appears to be the product of a
number of factors, including the failure in both restitution
and redistribution programmes to demarcate plots for
individual household use and to allocate these, and the
resulting need to rely on joint activities as the only way of
securing access to land. It may also, however, be the product
of the community nature of claims and, to a degree, also
the redistribution application process, which leads to an
attachment, sometimes among both claimants and officials,
to the idea of not only collective ownership, but also to use
of land by ‘the community’. The failure to move beyond
group activities can also be attributed to the guidance the
claimant communities receive from institutions such as the
RLCCs and the provincial departments of agriculture, which
appear to be heavily biased towards (collective) ‘projects’, and
away from individual models of production. This approach
becomes particularly problematic when subgroups initiate
particular productive activities, such as a piggery project or
a poultry project, in which only some members participate,
contributing their resources and labour and it is unclear
how produce and income from these activities are to be
shared, and whether other members may have some claim
to benefits.
The trends identified in this paper suggest a lack of fit
between the vision often evident in business plans of
‘farming’ and particularly ‘farming as a business’, and
the realities facing beneficiaries at project inception.
The starting point for planning is too often premised on
the question, What can be done on this land? Instead, a
useful starting point for planning, which would foreground
the profile, needs, aspirations, resources and priorities of
beneficiaries would be: What livelihoods are beneficiaries
pursuing already and how can this land support, secure and
extend these? Commenting more broadly on land reform,
Andrew et al. (2003:17) observe that:
The use of newly acquired or restored land by resource-
poor land reform beneficiaries tends to follow very
conventional uses [similar to those] amongst resource-
poor people in communal areas. These land uses include
individual residential sites, communal grazing for
individually or collectively owned livestock, small-scale
low input cultivation for self provisioning (and sometimes
small amounts of income), and the use of natural resources
for basic household needs… Households do not subsist off
these land-based livelihood strategies, but use them to
supplement off-farm incomes.
The case studies indicate that restitution project
planning is driven by an emphasis on minimising
changes in the use of the land, rather than maximising
the change in the livelihoods of beneficiaries. This review
indicates that there have been some missed opportunities
to increase the livelihood impact of land reform by
promoting changes in land use. Rather than minimising
changes to land use, land reform presents an opportunity
to explore and actively support alternative scales, purposes
and technologies of production.
Business planning has tended to focus on agricultural
potential (what is the land good for?), and relatively
little on the production environment – the range of
accessible markets, available skills, assets and capital of
beneficiaries (what kinds of land uses or enterprises will
work, given this context?). The former, relying on forecasts
of potential cash flow from COMBUD (commercial farming
budget manuals providing financial information on the
potential income from particular crops) and other technical
sources of information, has obscured the latter.
The case studies corroborate previous findings that
attempts to regulate land use through business plans
have been largely unsuccessful in land reform. This study
supports the assessment that business planning has tended
to prioritise internal consistency and cash-flow projections,
to satisfy officials, rather than providing a practical basis
from which beneficiaries can act. As Andrew et al. (2003:19)
argue in a review of land use in land reform projects:
The plans are often nothing more than a statement
of potential commercial use of the land, based on the
activities of the previous owner, drawn up by consultants
or implementing agents rather than the communities
themselves, although there is usually some consultation
with the beneficiaries. … Few if any beneficiary groups
adhere to these plans, and many find that in practice it is
not possible to adhere to them (Andrew et al. 2003:19).
This does not suggest that planning is unnecessary, but that
the manner in which it is done, and the priorities that drive it,
require attention. Experience to date shows that the extent
of facilitation and coordination required to make restitution
projects work has been typically underestimated. This
suggests that more priority needs to be placed on skilled
facilitation and support of community decision making,
determination of development priorities and settlement
choices, production plans, and institutional arrangements.
19
The Impact of Land Restitution and Land Reform on Livelihoods
Larger budgets will be needed to secure these skills, and
to ensure continuity in institutional roles over time. The
turnover of staff within key institutions, specifically the
RLCCs, has been cited as one reason why, despite budgeting
for this purpose, this support has not been forthcoming.
One option is to move many of the activities that have been
classed as ‘post-transfer’ into the pre-transfer planning stage.
These include land-use planning, subdivision, infrastructure
development, allocation of substantive land rights among
members, and settlement development. For instance, MOUs
have been secured among agencies prior to the settlement
of the claim – as in the case of Covie (Conway & Xipu 2006).
The key drawback with this approach is that it will delay the
settlement of claims.
A common feature of the case studies presented here
is that socio-economic differences within claimant
communities in terms of ownership of livestock
and access to off-farm sources of income – have been
reinforced. As beneficiaries are exposed to the costs of
participating in a project – risk, start-up costs, transport and
the opportunity cost of pursuing other activities – socio-
economic differences become more apparent. The better
off among a group of beneficiaries may be able to move
ahead with production even in the absence of external
support, and in this way monopolise the scarce resources
available to the group. This is evident at Zebediela, where
the more educated and vocal leadership were able to get
jobs in management. Elsewhere, it appears that wealthier
cattle-owning men who had transport were able to allocate
themselves grazing camps, while others in their CPA were
too poor to get access to their land because they had no
transport. Differing priorities are evident both within, and
between, projects: some projects, and some participants, are
explicitly motivated by an interest in generating profits for
reinvestment in order to generate a commercial enterprise,
while others are motivated by the need to have a secure
place to live, to build up a stock of wealth in the form of
livestock, to improve household food security, or to rebuild
community.
HIV/Aids has not been a prominent consideration
in thinking about how land reform is to improve
livelihoods. Land reform projects interact with long-
term changes in livelihoods and vulnerability, such as the
HIV/Aids pandemic. For instance, at eMpangisweni, where
women constitute 80% of the employed labour force, 80%
of all women tested in antenatal clinics were HIV-positive.
Nowhere are the implications of this for future priorities
for livelihood strategies and for land-use options taken
into consideration by project planners and implementers.
In considering the current livelihood strategies and future
options for this community, the challenge of HIV/Aids cannot
be ignored. The HIV/Aids mitigation literature suggests that
a relevant question that must be addressed in policy is:
What types of land uses should be promoted to improve
the livelihoods of beneficiaries in a sustainable manner, that
will strengthen their ability to withstand shocks, chronic
morbidity (illness and physical weakness) and mortality of
household members?
The importance of interrogating the impact of restitution
and land reform more generally on the livelihoods of
those intended to benefit cannot be overstated. These
major programmes can achieve their goals of transferring
land, spending budgets, and noting the thousands of
‘beneficiaries’ but, unless all of this results in improved
livelihoods, land reform will not succeed. Restoring land
rights must lead to development, or the injustice of
dispossession will not have been undone. This will lay
the basis for making the economic argument for land
reform, and to do so by demonstrating that scaling up land
reform and changing the ways in which rural land is used
constitute an effective investment by the state, and by
South African society as a whole, in pro-poor development
and transformation.
To ensure that land reform constitutes the basis for improved
livelihoods for beneficiaries, and a worthy investment for
government, fresh perspectives in planning and practice will
be needed. These are itemised briefly in the next section.
20
The Impact of Land Restitution and Land Reform on Livelihoods
6. Recommendations
New ways of thinking about (and planning for)
livelihoods are now needed: Key to these is the need
to find ‘fit between project design and the profiles
of participants. For the poor, this means making risk
mitigation a central element in all projects. Livelihood
strategies for a population with a high incidence of
HIV/AIDS require low-labour intensity production
close to the homestead, crops that are resilient, low in
input and high in nutritional value, and small livestock
to supplement nutrition and provide a ready source
of cash income, alongside long-term investments in
larger livestock herds. There is also a need to structure
short-term as well as long-term benefits. Over what
time horizon are livelihood impacts expected? How
does this inform decisions in the pre-settlement phase
and planning for post-settlement support?
Planning must consider not only the agricultural
potential but also the production environment: As
well as considering what the land is good for, attention
must be paid to the existing livelihood structures and
strategies of future beneficiaries, and the range of
accessible markets, available skills, assets and capital
that will be available to them. Then consideration must
be given to what kinds of land use or enterprise will
work, given this context.
Profile participants’ socio-economic status and
resource base: This is a missing step in the project
cycle which must be done at the project inception
stage, to feed into project planning. This would also
serve the purpose of establishing a baseline for impact
assessment.
Prioritise land use and settlement planning in the
pre-settlement phase: Planning for how land will be
used, on what terms, and by whom, and the necessary
agreements to provide support for settlement
(housing, services and infrastructure) need to be in
place prior to concluding a settlement agreement (in
the case of restitution).
Identify a lead agency to implement each
settlement agreement: This is the only way to ensure
that institutional support does not fall between ‘stools’,
between, for example, the RLCC, the DLA, provincial
departments of agriculture and district and local
municipalities. Invest in institutional capacity within
these lead agencies and attach resources to their role
in supporting implementation of restitution and other
land reform projects.
Differentiate between ownership, management
and use: There is a need to differentiate between
different units of ownership and management,
according to the intended use. In particular, land-use
planning should consider the subdivision of restored
land into smaller units for different, dedicated and
agreed-upon purposes.
Be strategic about strategic partnerships: Build in
tangible and immediate benefits for claimants and
buy in independent legal, economic and agricultural
expertise to advise them on available options and
their implications. Promote own use for claimants or
new owners, alongside strategic partnerships, in order
to enable them to pursue diversified livelihoods, and
to reduce their reliance on dividends or employment
which may take time to materialise.
Prioritise options for direct access to land for
livelihood purposes: This is almost always less risky
for poor households than relying on indirect (and
uncertain) benefits from leasing out their land, from
joint ventures or from large group activities.
21
The Impact of Land Restitution and Land Reform on Livelihoods
7. References
Aliber, M., Masika, P. and Quan, J. 2006. Land reform at scale: A
case study of land redistribution in the Elliot district, Eastern
Cape. Unpublished report to the National Treasury.
Pretoria: Human Sciences Research Council. June.
Andrew, M., Ainslie, A. and Shackleton, C. 2003. Land use
and livelihoods. Cape Town: Programme for Land and
Agrarian Studies, University of the Western Cape.
(Evaluating land and agrarian reform in South Africa
occasional paper series; no. 8.)
Binswanger, H.P., Deininger, K. and Feder, G. 1995. Power,
distortions, revolt and reform in agricultural land
relation, in Handbook of development economics (Vol.
3) edited by J. Berhman and T. Srinivasan. Amsterdam:
Elsevier.
CASE (Community Agency for Social Enquiry). 2006.
Assessment of the status quo of settled land restitution
claims with a developmental component nationally.
Research conducted for the Monitoring and Evaluation
Directorate, Department of Land Affairs. 14 February.
Conway, A. and Xipu, T. 2006. Securing post settlement
support towards sustainable restitution – Lessons from
Covie. Paper presented at the ‘Land, memory, justice and
reconciliation: Perspectives on land restitution in South
Africa’ Conference held at Houw Hoek Inn, Cape Town,
13–15 September.
Deininger, K. 2006. Land policy reforms, in Analyzing
the distributional impact of reforms ( Vol. I) edited by
A. Coudouel and S. Paternostro. Washington, D.C.: IBRD/
The World Bank.
DLA (Department of Land Affairs). 2003. Monitoring and
evaluating the quality of life of land reform beneficiaries
2000/2001. Technical report prepared by Citizen
Surveys, Cape Town, for the Department of Land Affairs,
Directorate Monitoring and Evaluation. January.
Greenberg, S. 2006. Land reform and local economic
development in Maluti-a-Phofung. PowerPoint
presentation to National Treasury. 10 July.
Hall, R. 2004. LRAD Rapid Systematic Assessment Survey: Nine
case studies in the Eastern Cape. Narrative report to the
Department of Land Affairs prepared by the Programme
for Land and Agrarian Studies, University of the Western
Cape, Cape Town. 28 June.
Kleinbooi, K., Lahiff, E. and Boyce, T. 2006. Land reform,
farm employment and livelihoods. Western Cape case
study: Theewaterskloof Local Municipality. Cape Town:
Programme for Land and Agrarian Studies, University
of the Western Cape and Pretoria: Human Sciences
Research Council. June.
Kinsey, B. 2000. The implications of land reform for rural
welfare, in Land reform in Zimbabwe: Constraints
and prospects, edited by T.A.S. Bowyer-Bower and
C. Stoneman. Aldershot: Ashgate Publishers:103–118.
Kinsey, B. 2005. A generation of land reform in Zimbabwe:
Evidence for an impact on livelihoods and rural welfare.
Seminar presented at the Programme for Land and
Agrarian Studies, University of the Western Cape, Cape
Town. 17 June.
Lahiff, E. and Cousins, B. 2005. Smallholder agriculture and
land reform in South Africa. IDS Bulletin, 36(2).
Lahiff, E., Hall, R. and Jacobs, P. 2003. Redistributive land
reform in South Africa. A scoping study for the project
Methods and Impacts of Land Access and Agrarian
Reform (MILAGRE). Unpublished paper, Programme for
Land and Agrarian Studies, University of the Western
Cape. Cape Town.
May, J. and Roberts, B. 2000. Monitoring and evaluating the
quality of life of land reform beneficiaries 1998/1999.
Summary report prepared for the Department of Land
Affairs. Final report. 19 June.
Murray, C. 1997. South African land reform: Case-studies
in ‘demand’ and ‘participation’ in the Free State. African
Affairs, 96:187–214.
Ncapayi, F. 2005. Land need in South Africa: Who wants land,
for what? Unpublished Masters thesis. Programme for
Land and Agrarian Studies, University of the Western
Cape.
Palmer, R., Kingwill, R., Hamer, N. and Coleman, M. 2006. The
Dwesa-Cwebe restitution claim: A case study as preparation
for a field-based learning programme. Unpublished paper.
Cape Town: Phuhlisani Solutions.
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PLAAS (Programme for Land and Agrarian Studies).
2006. International comparative study of strategies for
settlement support provision to land reform beneficiaries.
Unpublished paper. Cape Town: Programme for Land
and Agrarian Studies, University of the Western Cape,
and Sustainable Development Consortium.
Diagnostic studies
Bakwena ba Mare a Phogole (Klipgat) Community Restitution
Claim. Cape Town: Programme for Land and Agrarian
Studies, University of the Western Cape, and Sustainable
Development Consortium. August 2006.
Bjatladi Community Restitution Claim. Cape Town:
Programme for Land and Agrarian Studies, University of the
Western Cape, and Sustainable Development Consortium.
August 2006.
Covie Community Land Claim. Cape Town: Programme for
Land and Agrarian Studies, University of the Western Cape,
and Sustainable Development Consortium. August 2006.
eMpangisweni Community Trust Claim. Cape Town:
Programme for Land and Agrarian Studies, University of the
Western Cape, and Sustainable Development Consortium.
August 2006.
Groenfontein-Ramohlakane Community Restitution Claim.
Cape Town: Programme for Land and Agrarian Studies,
University of the Western Cape, and Sustainable
Development Consortium. July 2006.
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The Impact of Land Restitution and Land Reform on Livelihoods
24
The Impact of Land Restitution and Land Reform on Livelihoods
... In Limpopo Province, there is an example of a commercial farm, Zebediela Citrus Farm. This citrus farm has been widely described as the largest citrus producer in the southern hemisphere and it has led to the establishment of a strategic partnership between the Bjatladi Community Property Association (CPA), the claimant, the current owner of the 5,903-ha property, the Zebediela Workers' Trust, and a strategic partner called Henley Farm Properties (Pty) Ltd (Hall, 2007). These three entities comprise of the operating company, in which Bjatladi CPA owns 30 % of shares, while the other partners, the Workers' Trust and the strategic partner own 15 and 55%, respectively. ...
... Only the strategic partner was required to buy shares; the Agriculture Rural Development Corporation (ARDC) transferred shares to the others. In terms of the restitution settlement agreement, the strategic partner will transfer 1% of the total shares to the Bjatladi CPA each year for five years, until it owns only 50% and the CPA has 35 % (Hall, 2007). The land was transferred with title to the claimant community but, as part of the Settlement Agreement, was subject to a 15-year lease agreement with a rental set at R1 million per annum. ...
... The farm has not improved the livelihood of any claimant. Instead, claimants pursued the lowest risk option of leasing out their land, first to the former owner, and later to a small group of its better-off members to bringing about a small income stream to the Trust, however, there are no tangible benefit for claimants (Hall, 2007). This assertion was also noticed in the current study. ...
Article
Full-text available
Farmland was regarded as the most important asset used to enhance agricultural productivity in developing countries to improve the livelihoods of restitution farm beneficiaries. Most, unfortunately, recent reports show decreased agricultural productivity in most developing countries. In South Africa, the Land restitution program was introduced to restore land to people dispossessed by apartheid government after 1913. However, production in the restitution farms has declined. This study aimed to address the non-performance of the restitution farms in Waterberg District and evaluate their production performance. A questionnaire was administered to gather quantitative data on the farms’ production and the benefits accrued from the farms. Data was captured using Geographic Information System (GIS), and then a remote sensing analysis method was used to map restitution farms to illustrate farms performance. Statistical Package for the Social Scientists (SPSS) version 25 was used to compute statistics on-farm production. About 83% of beneficiaries have not benefitted from the 32 farms, while 61.6% did not have markets, and 64% reported a lack of farms income. Generally, lack of farm production impeded beneficiaries from receiving benefits and employment. The study recommended that private organizations and sector departments work together to assist beneficiaries with capacity building, marketing of farm produce, and funds to improve production.
... These findings are in alignment with previous research on land reform livelihoods, which 615 concluded that land reform beneficiaries (including restitution beneficiaries) have not received any meaningful material benefits (Hall 2007;Walker et al. 2010;Cousins 2016b). Although land reform beneficiaries have received some livelihoods improvements, these are usually marginal (Cousins 2016b). ...
Article
Full-text available
Through land restitution, a component of land reform, the state seeks to restore the dignity of black communities who lost their land during colonial and apartheid times. Land restitution seeks to return the land that was unfairly grabbed from black people or to offer alternative land or cash compensation. Much public discourse and research on South African land reform has been on the failure of land reform projects and on land acquisition debates. Little research has been published foregrounding the voices of beneficiaries. By capturing their lived experiences after land transfer, this paper examines whether these beneficiaries have been “restituted.” My study in the Macleantown and Salem restitution cases shows that access to land has restored the dignity of beneficiaries and produced nostalgia because of the return of ancestors’ land, although the livelihoods of beneficiaries have not improved and these projects have failed to function. I argue that these land compensated beneficiaries have not been properly ‘restituted,’ because the programme has failed to improve their livelihoods or to produce modern solutions for the restitution programme. Land restitution in these areas has largely not led to land justice because beneficiaries are living in poverty.
... For this reason, such failure to alleviate poverty negatively affects any hopes to achieve improvements inhuman development. For instance, Hall (2007) argues that by 2007 most land restitution beneficiaries across all projects had received no material benefits. Empirical evidence suggests that over 50 percent of rural land reform projects (including restitution) have failed to improve the livelihoods of beneficiaries (Cousins 2015:254-255). ...
... Equally, in the South African context much has been written about the need to develop a cohort of small-scale farmers: to stimulate wider rural development, but also to transform the agricultural sector that is dominated by large-scale, white farmers. A large number of publications outline policies and their impacts (Greenberg, Swanepoel, & Lewis, 2018;Hall, 2007;Khulisa Management Services & University of Cape Town, 2016), analyse specific case studies (Chamberlain & Anseeuw, 2017;Sopov, Saavedra, Sertse, Vellema, & Verjans, 2014), or instruments (Anseeuw et al., 2011;Ortmann & King, 2007a), or provide broad recommendations on potential strategies going forward (Berdegué, Biénabe, & Peppelenbos, 2008;Markelova, Meinzen-Dick, Hellin, & Dohrn, 2009;Vermeulen & Cotula, 2010). These, and additional, publications identify a range of challenges that smallholders face when trying to access commercial value chains. ...
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Commissioned by the Netherlands Enterprise Agency, this report presents a practically oriented Theory of Change to develop business models for successful and sustainable smallholder integration into commercial value chains.
... Most rural poor in developing countries including South Africa are entirely dependent on this basic livelihood asset for a living. Hall (2007) mentions that policies that facilitate access to land can reduce poverty and income inequality. Land reform program in South Africa was initiated in 1994 by the Department of Land Affairs which changed its name to the Department of Rural Development and Land Reform in order to redress the inequalities and disparities in ownership from the apartheid era. ...
Article
Purpose The purpose of this paper is to determine the effects of socio-economic factors of land redistribution for agricultural development project beneficiaries on savings in the North West Province, South Africa. Design/methodology/approach A binary logistic regression model was employed to determine the effects of socio-economic factors of project beneficiaries on their savings. Findings The results show that the average number of trainings attended by the beneficiaries, the proportion of youth per project and the average net farm income of the project positively and significantly influence the level of savings by the beneficiaries. About 62 percent of the beneficiaries did not have savings; thus, only 38 percent of beneficiaries had savings. Of the 38 percent who had savings, the majority (77 percent) had an annual net farm income of less than R1,000. Only 2 percent of the projects had an annual net farm income of more than R10,000. Research limitations/implications The findings of this study are valuable to policymakers dealing with the issue of land reform and could shed some light on how land redistribution can achieve its intended purposes. These findings should be granted serious consideration when formulating policies aimed at improving savings within collective groups. Practical implications The findings of this study have revealed the importance of training and participation of youth in influencing savings. As well, the findings imply that an organization or household with a health income have a higher propensity of saving. Social implications The research findings point out to the importance of saving. With savings, a household is in a better position to deal with situations that arises in case of emergency. Originality/value This paper is among the few studies to analyze the determinants of savings at a group or project level. Most studies are done at household or individual level.
... The result of group land reform was that few beneficiaries moved onto the land, and those who did had limited resources for production or even to establish settlements with acceptable standards (e.g. with water, electricity, housing, access to health care facilities and schools) (Hall 2007). This was made worse by the failure of government institutions to transfer grants that were meant to assist in realising business plans. ...
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The dominant corporate structure of South Africa’s agro-food system has led many to suggest there is limited value in redistributing land as a scarce economic resource, or in providing support to black small-scale farmers when large agribusinesses are capable of meeting food needs. Agrarian reform (land reform plus black small-scale farmer support) is not a necessary component of the existing economic system in South Africa. Yet it has tremendous political importance, especially in the context of a stagnant or declining job market. After considering the development of the corporate agro-food system in South Africa, and its impact on agrarian reform, this paper concludes that agrarian reform as a political project and a vision retains the potential to contribute not only to a more just society, but also to progressive economic transformation.
Article
In addition to challenges facing South Africa’s overall post-apartheid land reform, group rural land claims have particularly proven difficult to resolve. This paper explores the role that the state plays in shaping the outcomes of rural group land claims. It analyzes policy statements, including from policy documents, guidelines and speeches made by politicians during ceremonies to hand over land rights to rural claimants; seeking to understand the possible motives, factual correctness, as well as impact, of these statements on the trajectory of the settled land claims. The paper concludes that land reform as practiced in South Africa is functionally and discursively disembedded from socio-political histories of dispossession, because land has come to be treated more as a commodity, rather than as something that represents multiple meanings for different segments of society. Like many processes leading up to a resolution of a rural claim, subsequent statements by government concerning particular ‘successful’ land claims convey an assumption that local claimants have received just redress; that there was local consensus on what form of land claim redress people wanted, and that the state’s lead role in suggesting commercial farming or tourism as land use options for the new land rights holders is welcome. The paper shows that previous in-depth research on rural land claims proves that the state’s role in the success or failure of rural land claims is controversial at best.
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1 This note is meant to be a quick source on key land policy issues for practitioners and policymakers. 1 It also aims to provide information on the way poverty and social impact analysis (PSIA) can be used to explore hypotheses so as to address these issues properly. To be effective, PSIAs must explicitly take into account the needs and priorities of stakeholders in an ongoing policy dialogue. The note therefore identifies the requirements so that PSIAs can fit into an ongoing policy dialogue or, if there is no such dialogue, generate one on a topic of particular land policy relevance. The discussion of substantive and methodological subjects related to PSIAs is brief as these are examined in more detail elsewhere (Deininger 2003; Bourguignon and Pereira da Silva 2003). The note focuses on two key land policy interventions: securing land tenure and improving access to land. The section on securing land tenure highlights ways to enhance tenure security and the impact of greater tenure security on investment, conflicts over land, and land market participation. The section on access to land covers the important principles and policies. PSIAs depend on quantitative information that is often not available through standard household surveys. For this reason, the note also considers practical questions about sampling and about questionnaire design so that household and community surveys can make a meaningful and quantifiable contribution to the land policy dialogue.
Article
This article offers an ethnographic cross-section in one province of South Africa's new land reform programme. ‘Demand’ and ‘participation’ are the rhetorical keywords of the programme. Demand for land redistribution, however, cannot be understood in abstraction from the political and economic conditions of its supply. Similarly, ‘participation’ is a managed process involving many institutional intermediaries. A series of illustrative case-studies is presented, relating to the allocation of state-owned land; state-facilitated ‘market’ access to privately-owned land; the reconstruction and partial privatization of a para-statal development agency, which have brought into question the viability of a ‘community conservation’ project and also exposed the agency to political cross-fire; and, finally, some intricacies of the possibility of land restitution to people dispossessed under apartheid, which raises the question of whether the concept of indirect racial discrimination may be applied in the South African context. Several contradictions of the process of land redistribution are analysed: for example, the massive financial costs, direct and indirect, of bringing projects to fruition in the short term, without resolution of the need for long-term support; the divergence between nominal and actual beneficiaries; political and institutional conflicts, both inside and outside the state; and routine incompatibility between the diverse aspirations of beneficiaries and the ‘business plans’ required by bureaucrats and suppliers of credit.
Article
This chapter inquires into the efficiency and equity consequences of rental and sales markets for agricultural land in the developing world. Most of the work on the relationship between farm size and productivity strongly suggests that farms that rely mostly on family labor have higher productivity levels than large farms operated primarily with hired labor. An examination of the historical evolution of land rights shows the reason for the deviations: rights over land and the concentration of ownership observed in most developing countries at the end of World War II are outgrowths of power relationships. The chapter describes the variety of land relations and their consequences for the efficiency of agricultural production. The chapter also we examines how these power relations emerged and what legal means enabled relatively few landowners to accumulate and hold on to large landholdings. The methodological epilogue examines how various strands of economic theory have contributed, or failed to contribute, to the explanation of variations in policies, distortions and land relations over space and time.
Monitoring and evaluating the quality of life of land reform beneficiaries 1998/1999. Summary report prepared for the Department of Land Affairs. Final report
  • J May
  • B Roberts
May, J. and Roberts, B. 2000. Monitoring and evaluating the quality of life of land reform beneficiaries 1998/1999. Summary report prepared for the Department of Land Affairs. Final report. 19 June.
Redistributive land reform in South Africa. A scoping study for the project Methods and Impacts of Land Access and Agrarian Reform (MILAGRE)
  • E Lahiff
  • R Hall
  • P Jacobs
Lahiff, E., Hall, R. and Jacobs, P. 2003. Redistributive land reform in South Africa. A scoping study for the project Methods and Impacts of Land Access and Agrarian Reform (MILAGRE). Unpublished paper, Programme for Land and Agrarian Studies, University of the Western Cape. Cape Town.
Land reform, farm employment and livelihoods. Western Cape case study: Theewaterskloof Local Municipality. Cape Town: Programme for Land and Agrarian Studies
  • K Kleinbooi
  • E Lahiff
  • T Boyce
Kleinbooi, K., Lahiff, E. and Boyce, T. 2006. Land reform, farm employment and livelihoods. Western Cape case study: Theewaterskloof Local Municipality. Cape Town: Programme for Land and Agrarian Studies, University of the Western Cape and Pretoria: Human Sciences Research Council. June.
Land need in South Africa: Who wants land, for what? Unpublished Masters thesis. Programme for Land and Agrarian Studies
  • F Ncapayi
Ncapayi, F. 2005. Land need in South Africa: Who wants land, for what? Unpublished Masters thesis. Programme for Land and Agrarian Studies, University of the Western Cape.
Land use and livelihoods. Cape Town: Programme for Land and Agrarian Studies, University of the Western Cape. (Evaluating land and agrarian reform in South Africa occasional paper series
  • M Andrew
  • A Ainslie
  • C Shackleton
Andrew, M., Ainslie, A. and Shackleton, C. 2003. Land use and livelihoods. Cape Town: Programme for Land and Agrarian Studies, University of the Western Cape. (Evaluating land and agrarian reform in South Africa occasional paper series; no. 8.)
Land reform at scale: A case study of land redistribution in the Elliot district, Eastern Cape
  • M Aliber
  • P Masika
  • J Quan
Aliber, M., Masika, P. and Quan, J. 2006. Land reform at scale: A case study of land redistribution in the Elliot district, Eastern Cape. Unpublished report to the National Treasury. Pretoria: Human Sciences Research Council. June.