Land reform and

SCHOOLof sustainable GOVERNMENT development in UNIVERSITY OF THE WESTERN CAPE ’s province

Edited by Edward Lahiff Research report no. 14 Research report no. 14

Land reform and sustainable livelihoods in South Africa’s Eastern

Edward Lahiff

Programme for Land and Agrarian Studies October 2002 ‘It is not easy to challenge a chief’: Lessons from Rakgwadi

Land reform and sustainable livelihoods in South Africa’s Eastern Cape province Edward Lahiff

Published by the Programme for Land and Agrarian Studies, School of Government, University of the Western Cape, Private Bag X17, Bellville, 7535, Cape Town. Tel: +27 21 959 3733. Fax: +27 21 959 3732. E-mail: [email protected] Website: www.uwc.ac.za/plaas

An output of the Sustainable Livelihoods in Southern Africa: Governance, institutions and policy processes (SLSA) project. SLSA is funded by the UK Department for International Development (DFID) and co-ordinated by the Institute of Development Studies, University of Sussex (UK), in co-operation with researchers from the Overseas Development Institute (UK), IUCN (Mozambique), Eduardo Mondlane University (Mozambique), the University of Zimbabwe, and PLAAS (University of the Western Cape, South Africa).

Programme for Land and Agrarian Studies Research report no. 14

ISBN 1-86808-568-6

October 2002

All rights reserved. No part of this publication may be reproduced or transmitted, in any form or means, without prior permission from the publisher or the author.

Copy editor: Stephen Heyns Cover photograph: Mdudwa Village, Eastern Cape, composite image of photos taken by Zolile Ntshona and Edward Lahiff Layout: Rosie Campbell Maps: Anne Westoby

Typeset in Times Reproduction: House of Colours Printing: Hansa Reproprint Contents List of boxes, figures and tables iii Abbreviations and acronyms iii Organisations consulted during this study iv Acknowledgements v Chapter 1: Introduction 1 Chapter 2: Land and livelihoods in the Eastern Cape 5 Chapter 3: Land reform policy 9 Chapter 4: Land reform in the Eastern Cape 12 Chapter 5: Restitution 15 Eastern Cape innovations in restitution policy 17 The Chatha restitution claim 19 Forestry claims 20 Restitution claims on nature reserves 22 Chapter 6: Redistribution 24 Gasela 27 Magwa Tea Estate 28 Lambasi Farm 30 Chapter 7: Tenure reform 33 Chapter 8: Local government-led land reform 36 Chapter 9: Land reform and sustainable livelihoods 39 The poor and development processes 39 Local service providers 41 Local government 42 Provincial government 43 Holistic and strategic direction 44 Chapter 10: Conclusion 46 References 48

i ‘It is not easy to challenge a chief’: Lessons from Rakgwadi

ii List of boxes, figures and tables

Figure 1: South Africa’s nine provinces 2 Figure 2: The former and 3

Box 1: 14 products of the Eastern Cape DLA 13 Box 2: Eastern Cape restitution claims at 31 March 2001 and 31 March 2002 16 Box 3: Eight lessons from Gasela 28 Box 4: Six governance requirements for sustainable livelihoods 40

Table 1: Forestry claims 21 Table 2: Redistribution projects in the Eastern Cape by year and type of project 1995–2002 25 Abbreviations and acronyms ADC Amatola District Council ADM Amatole District Municipality ANC African National Congress BRC Border Rural Committee CBO community-based organisation Contralesa Congress of Traditional Leaders of South Africa CPA communal property association CPC community production centre CRLR Commission on Restitution of Land Rights DEAT Department of Environmental Affairs and Tourism DFID Department for International Development (of the UK government) DLA Department of Land Affairs DOA Department of Agriculture DWAF Department of Water Affairs and Forestry Ecarp Eastern Cape Agricultural Research Project ECSECC Eastern Cape Socio-Economic Consultative Council Esta Extension of Security of Tenure Act Gear Growth, Employment and Redistribution (macroeconomic framework) GTZ Deutsche Gesellschaft für Technische Zusammenarbeit ha hectare(s) IDP integrated development plan ISRDS Integrated Sustainable Rural Development Strategy LDO land development objective LRAD Land Redistribution for Agricultural Development LRSP Land Reform and Settlement Plan NGO non-governmental organisation PDLA provincial office of the Department of Land Affairs PTO permission-to-occupy RLCC Regional Land Claims Commission SDI Spatial Development Initiative SLAG Settlement/Land Acquisition Grant

iii ‘It is not easy to challenge a chief’: Lessons from Rakgwadi

SSDP Settlement Support and Development Planning Tralso Transkei Rural Services Organisation Tracor Transkei Development Corporation Organisations consulted during the study

Amatole District Municipality, East London Border Rural Committee, East London Department of Agriculture, Bisho Department of Land Affairs, East London Department of Provincial Treasury, Economic Affairs, Environment and Tourism, Bisho Department of Public Works, Bisho Department of Water Affairs and Forestry, King William’s Town Farm Africa, Umtata Independent Development Trust, Lambasi Ingquza Local Municipality, Flagstaff Land Bank, East London Legal Resources Centre, Magwa Workers Co-operative, Magwa Office of the Premier, Bisho OR Tambo District Municipality, Umtata Regional Land Claims Commission, East London Rural Livelihoods (RuLiv) Project, Bisho Transkei Rural Services Organisation (Tralso), Umtata Xopozo tribal authority, Siphaqeni

iv Acknowledgements

his report forms part of the bique. Funding was provided by the UK’s Sustainable Livelihoods in Department for International Development. Southern Africa Project, a The author wishes to express his apprecia- research collaboration between tion to the funder, to the many people in TPLAAS and the Institute of Development the Eastern Cape and elsewhere who Studies, Sussex University, with partner contributed to this study, and to Zolile organisations in Zimbabwe and Mozam- Ntshona for his assistance in the field.

v Chapter 1: Introduction The Eastern Cape is one of the nine provinces of South Africa, located in the south-east of the country along the Indian Ocean seaboard. The area was a site of prolonged struggle between native peoples, principally Xhosa-speakers, and European colonists throughout the eighteen and nineteenth centuries, which saw the defeat and subjugation of the African chieftaincies and the loss of the majority of territory to white settlers.

n the twentieth century, under poli- urban areas, the ‘deep rural’ areas of the cies of segregation and , the former Ciskei and, most especially, the Eastern Cape was divided territorially former Transkei, have presented enormous into zones of ‘white’ occupation, challenges to the reform policies intro- Iwhich formed part of the Republic of duced by the state since 1994. Opportuni- South Africa, and the native reserves (later ties for migrant labour to the mining and ‘African homelands’, or ) of industrial sectors, on which the area has Transkei and Ciskei, which for a time long depended, have fallen dramatically in achieved the dubious status of ‘independ- recent years, and many local sources of ent republics’. The separation of people employment, notably in the public sector, along racial lines, as in the rest of South are also shedding jobs. Declining opportu- Africa, was accompanied by massive nities for formal employment have forced forced removal of African, Indian and many households to turn to informal coloured people, widespread dispossession activities to obtain a livelihood, including of land and other property, and severe an increased dependency on traditional curtailment of social, economic and politi- land-based activities. cal rights. The result was one of the most This paper focuses on one area of govern- unequal societies in the world, with a ment policy – land reform – looking at the relatively small white minority enjoying institutional forms that have been devel- high standards of living and the great oped as part of that policy, the strategies majority of the black population consigned being applied to implement it, the linkages to a life of extreme exploitation and po- between it and other areas of policy, and verty (May, Woolard & Klasen 2000:26). the achievements of the policy to date. In The transition to democracy in 1994, doing so, it seeks to understand the impact and the coming to power of a government of land reform policy on the livelihood led by the African National Congress opportunities of the rural poor. This is (ANC), has only begun to reverse this done through a detailed study of land legacy. Landlessness, vulnerability, unem- reform policy in the Eastern Cape pro- ployment, lack of basic services and, vince, with a particular emphasis on the above all, poverty, remain central to the former ‘homeland’ areas of Ciskei and lives of the majority of the population of Transkei. the Eastern Cape. While considerable The study begins by looking at the progress has been made in many areas of importance of small-scale land-based social policy – such as provision of water, activities – principally cropping, livestock electricity and housing – especially in and gathering of wild resources – to rural

1 Land reform and sustainable livelihoods in South Africa’s Eastern Cape province

Figure 1: South Africa’s nine provinces

livelihoods in the Eastern Cape. It then The study is based primarily on interviews looks at the policies that have been put in conducted with representatives of the main place by the state to improve access to governmental and non-governmental land, and the rights people enjoy over organisations involved with land reform in land, particularly in terms of the Land the Eastern Cape, a review of policy Reform Programme of the Department of documents and, to a lesser extent, inter- Land Affairs. In the final section, a six-part views with intended beneficiaries of land framework developed by Goldman is used reform policy. Research was conducted in to assess the land reform policy in the the Eastern Cape between January 2001 Eastern Cape from a sustainable liveli- and June 2002. hoods perspective. The key questions addressed by the A key aim of the study was to develop study are as follows: an understanding of how land reform policy, which is formulated largely at the · What ‘version’ of land reform policy is national level, is shaped to suit conditions being implemented in the Eastern Cape? prevailing in the Eastern Cape, and the · What institutional arrangements under- implications of this for sustainable rural pin land reform in the Eastern Cape? livelihoods. This required close study of the · How does land reform contribute to institutions responsible for implementation, sustainable rural livelihoods? and especially the linkages between institu- · What lessons does the Eastern Cape tions at national, provincial and local levels. experience offer?

2 Chapter 1: Introduction

Figure 2: The former Transkei and Ciskei

3 Land reform and sustainable livelihoods in South Africa’s Eastern Cape province

Not all aspects of land reform policy, and commercial farming areas. Attention is not all areas of the Eastern Cape, are paid to all three ‘legs’ of the state’s land treated in equal detail. The emphasis reform programme – restitution, throughout has been on the impact of land redistribution and tenure reform – but not reform in the former homelands. Particular all elements within these programmes are attention is paid to the Wild Coast district covered. Missing from this study is any of the former Transkei, where related discussion of reforms related to the tenure research is underway as part of the wider rights of farm workers and farm residents Sustainable Livelihoods in Southern Africa in areas outside the former homelands, and project, but examples are also drawn from restitution of land in urban areas. former Ciskei and from former ‘white’

4 Chapter 2: Land and Chapter 2: Land and livelihoods in the Eastern Cape

The Eastern Cape covers an area of 169 875km2 and has a population of approximately 6.3 million people. The great majority of the population are Xhosa speakers, with minorities speaking , English and Sotho; 65% of the population is classified as rural. The most densely populated districts are those of the former Transkei, reaching as high as 92.9 persons per square kilometre in the former Kei District.

he Eastern Cape is, by most ‘homeland consolidation’, Ciskei grew to indicators, the province with the an area of approximately 800 000ha and highest incidence of poverty in the Transkei to approximately 4 280 000ha South Africa: it has the lowest (Charton 1980; Robertson 1990). The meanT monthly household expenditure, and Transkei became a separately-administered 48% of the population are classified as territory within the Republic of South living in poverty. The great majority of the Africa in 1963, with a Legislative Assem- poor are located in the former Ciskei and bly dominated by unelected chiefs. In Transkei, and poverty is particularly 1976 it was the first of the so-called home- pronounced among black, rural and fe- lands to be declared ‘independent’. Ciskei male-headed households (ECSECC became a self-governing territory in 1972, 2000:5). and was declared ‘independent’ in 1981. Approximately 10 million ha of land In Transkei in the early twentieth cen- (59% of the province) is in the hands of tury, colonial authorities divided land into 6 500 white commercial farmers, employ- ‘tribal’ administrative areas, set aside for ing approximately 70 000 farmworkers African occupation under the system of (ECSECC 2000:8). This land is used (in indirect rule (based on chiefs and head- descending order of importance) for sheep, men), and towns and resort areas reserved beef cattle, mixed farming, dairy cattle and for whites (Kepe 2001:10). From the vegetable production. With the exception 1950s, a policy of ‘betterment’, or of urban areas such as East London, Port villagisation, was introduced, ostensibly as Elizabeth and Grahamstown, the remainder a means of controlling rangeland degrada- is largely composed of the former home- tion in communal areas; it redefined land lands of Ciskei and Transkei. use patterns by dividing areas into residen- The area that was to become the Ciskei tial, arable and grazing land (De Wet was first demarcated as a ‘native reserve’ 1995). Residents were forcibly moved to within the British-controlled new residential sites and many lost plough- in late 1870s, and the Transkeian Territo- ing fields and grazing land in the process. ries (Transkei proper, Tembuland, Opposition to betterment and to the intro- Pondoland and parts of Griqualand East) duction of Bantu (Tribal) Authorities, were incorporated into the Colony between Bantu education, and the imposition of 1875 and 1900 (Thompson 1995:75). unpopular chiefs and headmen, were After a century of border changes and among the fac-tors the led to the so-called

5 Land reform and sustainable livelihoods in South Africa’s Eastern Cape province

Pondoland revolt (Mbeki 1984:119). included farms, black spots, homeland Outbreaks of violence occurred from 1958 consolidation, urban areas and informal in Bizana, and Flagstaff as rural settlements (Platzky & Walker 1985:10). people protested against chief Botha The forced removal of people into the Sigcau’s efforts to push through apartheid homelands, the resulting overcrowding, policies in the reserves. Major clashes the out-migration of labour, the lack of occurred in June 1960 at Ngquza Hill, economic development or investment and between Lusikisiki and Bizana, when the chronic poverty of the people resulted eleven people were killed by police. A state in enormous pressure on the natural re- of emergency was declared throughout the source base and the inability of most Transkei, thousands were arrested and many people to obtain a livelihood from the soil. sentenced to jail or to death, although only This problem is not new, and closely a small number of executions were carried followed the loss of territory to the colo- out. nists and the highly exploitative incorpora- From the early 1960s to the late 1980s, tion of African labour into the white- Xhosa-speaking people from throughout controlled economy. Bundy (1979:221–9) the Western and Eastern Cape, and other outlines the fall in agricultural production parts of the country, were forcibly resettled and the rise in poverty, paralleling the rise in the Ciskei and Transkei. Writing in the in migrant labour, in the Transkei through- mid-1980s, Platzky and Walker had this to out the first half of the twentieth century. say of forced removals in the area: The Eastern Cape was traditionally the By far the most important movement greatest supplier of labour to the of people has been from the white Witwatersrand, the majority of which went rural areas – off the white-owned to the goldfields, although men from farms – into the Ciskei. However, Pondoland also migrated to the Natal sugar other forms of relocation were fields (Southall 1982:78). evident too. When the Transkei took Detailed information on land-holding ‘independence’ in 1976 thousands of within all of the former homelands is very people fled from the Herschel and limited. Many people with rights to arable Glen Grey districts to the promised land are not using their land, many people land of the Ciskei, where they still are cultivating land to which they have no wait at Thornhill, Zweledinga and formal rights, and substantial amounts of Oxton for land and facilities. In cultivation take place on people’s residen- 1981 the Ciskei took ‘independence’ tial plots. The great majority of land in the stripping two million people of their South African citizenship. Seven homelands is held under some form of black spots in the corridor between communal tenure (Lahiff 2000b). Other Ciskei and Transkei are due to be tenurial forms include freehold land held moved shortly as part of the consoli- by individuals and groups, including dation of Ciskei … Over the past church missions, and state land, but these twenty years the government has account for relatively small areas. established that it has moved 80,000 Various estimates suggest that the total people out of Duncan village, an arable land in the homelands generally is African area in East London, to only sufficient to provide each household Mdantsane (Platzky & Walker (averaging six persons) with approxi- 1985:55–6). mately one hectare, but this figure varies Overall, Platzky and Walker estimated that considerably between homelands (Cobbett 401 000 forced removals took place in the 1987:66; Tapson 1990:566; Lahiff Eastern Cape between 1960 and 1983, 2000a:16). Obviously, this represents only plus an unknown number in terms of the the potential distribution, whereas in fact, a Groups Areas Act. Categories of removals substantial proportion of households are

6 Chapter 2: Land and livelihoods in the Eastern Cape

landless or near landless. While no precise household with grazing rights actually figures are available for landlessness in the keeps livestock, and many without formal homelands, estimates of 40–50% of house- rights do so. holds are commonly cited (Bembridge Since the creation of the African re- 1990:18; Levin & Weiner 1991:92). serves in the late nineteenth and early Studies from the Transkei over the past twentieth centuries, most of their inhabit- 20 years suggest that 50–60% of house- ants have been able to obtain only a part of holds enjoy some access to arable land their livelihood from agriculture. Moll (Hendricks 1990:88; McAllister (1988:5), speaks of ‘a general economic 1989:351). Beinart (1992:186) estimates collapse’ in the reserves from about 1930, that up to 60 000 land-holders may exist in with a severe decline in maize yields and the Transkei, mainly in the coastal districts, in numbers of sheep and cattle. Simkins ‘who until recently have been making a (1981:262) takes a similar position, but reasonably successful effort to sustain argues that the main drop in per capita production in difficult circumstances’, food output occurred only with the mas- combining farming with local employment sive influx of population to the homelands and small businesses. after 1955. Drawing on work by Baskin and others Local studies from throughout Transkei for the Second Carnegie Inquiry, Wilson suggest that livestock farming remains and Ramphele (1989:40) summarised the widespread, albeit with wide variations position in the Transkei as follows: between households and regions (Heron Throughout the Transkei, the degree 1991; Hendricks 1990; Southall 1982). It of landless falls generally within the would appear that somewhere between a range of 20 to 30 per cent. But a quarter and a half of households own survey in the south-west Transkei cattle, and the great majority of herds are found that 42 per cent of the house- less than ten head. Few households own holds had no arable plots. In this herds of 50 cattle or more. Small stock – sample, 29 per cent had vegetable sheep and goats – are probably owned by plots only, 19 had arable land only; slightly more households, but average herd 40 had both arable land and vegeta- sizes are not substantially greater. Beinart ble plots; 13 had neither. In another (1992:182), reviewing the findings of ten part of the Transkei 41 per cent had local and regional studies in the Transkei, no arable fields; and 25 had neither summarises the situation thus: fields nor cattle. in districts as varied as Matatiele, In Ciskei, De Wet and McAllister (1983) Tsolo, Port St Johns and Bizana, draw on the findings of the quite similar figures emerge through Rural Survey to show a the period from the late 1970s for decline in arable land-holding per house- the percentage of households with hold in the Chatha valley from an average cattle (about 50 per cent) and the of 1.72ha per household in 1949 to 0.43ha percentage with 10 or more (between in 1981, largely as a result of ‘betterment’, 10 and 15). while the proportion of households without A similar pattern is apparent in Ciskei. In land jumped from 10% to 40%. In a study two villages in the Peddie district, Steyn of two villages in the Peddie district, Steyn (1988:314) found that approximately two- (1988:243) found that 93% of households thirds and one-third of households owned had access to arable land: average hold- cattle, respectively, with average herd sizes ings were 1.4ha and 1.1ha respectively, of 6.4 and 4.0. In addition, between a third and less than 1% of households had more and a quarter of households owned sheep than 2ha of arable land. People with (average flock sizes of 19.3 and 21.4), grazing rights are, by and large, those with while over half (57% and 56%) owned arable rights also, although not every goats (average herd sizes of 10.8 and

7 Land reform and sustainable livelihoods in South Africa’s Eastern Cape province

17.3). Somewhat higher figures are re- 25% of average household income, of ported by Bembridge (1987:118) for the which the greater part is accounted for by Keiskamma district, where 71% of house- direct consumption. Long-term research at holds kept cattle and the average herd size Shixini by McAllister (2000:17), suggests amongst the study sample was 6.9 head. that difficulties with measurement of maize Over two-thirds of cattle herds (69%) were yields have led to a consistent smaller than 8 head, which Bembridge underestimation of the productivity of considers to be the minimum number farming households in the Transkei and necessary for the ‘primary needs of sur- that many rural households are effectively vival and subsistence’, namely the supply self-sufficient in their staple food. Recent of food products and draught power. work by Shackleton, Shackleton and Considerably fewer households kept goats Cousins (2001:593) also challenges the (36%) and sheep (25%); average herd size conventional view, suggesting that the for goats was 13 head, and for sheep, 21. majority of household income in the rural Detailed studies of livelihoods in the areas comes from land-based activities: homelands show that most households ‘land-based livelihood strategies are depend on multiple sources of income, of clearly more important than is usually which agriculture generally contributes a recognised, especially in direct relatively minor part compared to wages provisioning (sometimes called and pensions. (May, Rogerson & Vaughan ‘subsistence’) and as part of the rural 2000:234). Most studies show that wages safety net’. Overall, the available evidence (migrant and non-migrant) are the most suggests that, while agriculture may not be important source of income for households the principal source of livelihood for the in the homelands, and it would appear that great majority of households in the the importance of wages has steadily homelands, it does provide an important increased over recent decades (Rogers supplementary income for a substantial 1976:59; Nattrass & Nattrass 1990:526). Most studies show that between 60% and proportion, albeit with a high degree of 80% of income is obtained from wages, differentiation between households. Access with between a third and a half of this to land, even relatively small plots, forests coming from migrant remittances. Pensions or communal grazing, allows households are the second most important source of to maintain a diversified livelihood cash income, contributing between about strategy that may include wage 10% and 20% of average household employment, pensions, agricultural income. Estimates of agricultural income, production (for consumption or sale), and in terms of both cash sales and produce the keeping of livestock as a form of consumed within the producing investment, which together enhances their household, show the greatest variability, ability to obtain a livelihood under difficult but most studies put it at between 10% and conditions.

8 Chapter 2: Land and livelihoods in the Eastern Cape Chapter 3: Land reform policy

Since 1994, South Africa has embarked on an ambitious programme of land reform, designed to redress the grave racial imbalance in land holding and secure the land rights of historically disadvantaged people. The Constitution of the Republic of South Africa sets out the legal basis for land reform, particularly in the Bill of Rights. Section 25, the so-called property clause, allows for expropriation of property only in terms of ‘a law of general application’, for a public purpose or in the public interest, subject to just and equitable compensation; section 25(4) states that ‘the public interest includes the nation’s commitment to land reform, and to reforms to bring about equitable access to all South Africa’s natural resources’.

ubsequent sub-sections place a legislative and other measures to clear responsibility on the state to achieve land, water and related carry out land and related reforms reform, in order to redress the results and grant specific rights to vic- of past racial discrimination... timsS of past discrimination: Since 1994, land reform has been pursued 25 (5) The state must take reason- under three broad policy headings: able legislative and other measures, · restitution, which provides relief for within its available resources, to certain categories of victims of forced foster conditions which enable dispossession citizens to gain access to land on an · redistribution, a system of discretionary equitable basis. grants that assists certain categories of 25 (6) A person or community whose people to purchase land from private tenure of land is legally insecure as a owners or the state result of past racially discriminatory · tenure reform, intended to secure and laws or practices is entitled, to the extend the tenure rights of the victims extent provided by an Act of Parlia- of past discriminatory practices. ment, either to tenure which is legally The legal basis for restitution was created secure or to comparable redress. under the Restitution of Land Rights Act, 25 (7) A person or community 1994 (Act 22 of 1994), which provides for dispossessed of property after 19 June the restitution of land rights to persons or 1913 as a result of past racially groups dispossessed for the purposes of discriminatory laws or practices is furthering the objects of racially-based entitled, to the extent provided by an discriminatory legislation or practices after Act of Parliament, either to restitution 19 June 1913. The Commission on of that property or to equitable Restitution of Land Rights (CRLR) was redress. established under a Chief Land Claims 25 (8) No provision of this section Commissioner and six regional may impede the state from taking commissioners. In terms of the

9 Land reform and sustainable livelihoods in South Africa’s Eastern Cape province

Constitution, the Commission is an Most redistribution projects to date have independent body, but in practice it falls involved groups of applicants pooling their under the control of the Director-General grants to buy formerly white-owned farms of the Department of Land Affairs (DLA) for commercial agricultural purposes. Less and the Minister of Land Affairs. A special commonly, groups of farmworkers have court, the Land Claims Court, with powers used the grant to purchase equity shares in equivalent to those of the High Court, was existing farming enterprises. A separate also established to deal with land claims grant, the Grant for the Acquisition of and other land-related matters. Legally, all Municipal Commonage, has also been restitution claims are against the state, made available to municipalities wishing to rather than against current landowners. provide communal land for use (typically Provision is made for three broad grazing) by the urban poor. By the end of categories of relief for claimants: resto- 2001, a total of 834 redistribution projects ration of the land under claim, granting of had been implemented or approved nation- alternative land, or financial compensation. wide, involving 96 000 households and The cut-off date for lodgement of 1 006 135ha of land (DLA 2001). The restitution claims was 31 December 1998, legal basis for redistribution remains the by which date a total of 68 878 claims had Provision of Certain Land for Settlement been officially lodged, including both Act, 1993 (Act 126 of 1993), which was individual, family and community claims amended in 1998 and is now titled the in urban and rural areas. By January 2002, Provision of Land and Assistance Act. 29 421 claims, representing 59 498 Tenure reform is generally seen as the people, had been settled at a total direct most neglected area of land reform to date, cost of R1.347 million; a total of but it has the potential to impact on more 406 120ha of land had been restored and people then all other land reform R938 million paid in financial programmes combined. Tenure reform, in compensation (CRLR 2002). the current context, is general taken to The aim of the redistribution mean the protection, or strengthening, of programme is ‘the redistribution of land to the rights of residents of privately-owned the landless poor, labour tenants, farm farms and state land, together with the workers and emerging farmers for reform of the system of communal tenure residential and productive use, to improve prevailing in the former homelands. their livelihoods and quality of life’ (DLA Attempts to draft a law for the 1997:36). To date, this has been achieved comprehensive reform of land rights and mainly through the provision of the administration in communal areas (the so- Settlement/Land Acquisition Grant called Land Rights Bill) were abandoned (SLAG), a grant of R16 000 supplied to in mid-1999, and a second attempt qualifying households with an income of beginning in late 2001 has led to the less than R1 500 per month. Since 2001, a publication of a draft Communal Land new programme, Land Redistribution for Rights Bill in August 2002. Agricultural Development (LRAD) has The principal legislative components of been introduced with the explicit aim of tenure reform to date are as follows: promoting commercially-oriented · The Upgrading of Land Tenure Rights agriculture. While LRAD retains the Act, 1991 (Act 112 of 1991) (as market-based, demand-led approach of amended), which allows for the conver- previous policies, it requires an ‘own sion of informal land rights into formal contribution’ of R5 000 or more (in cash or ownership (title deeds or deeds of kind), on the basis of which applicants can grant). qualify for grants of between R20 000 and · The Land Reform (Labour Tenants) Act, R100 000. The income limit that applies 1996 (Act 3 of 1996), which protects under SLAG does not apply under LRAD. the land rights of labour tenants on

10 Chapter 3: Land reform policy: The national policy framework

privately-owned farms, and provides a which provides for the repeal of the process whereby such tenants can acquire Rural Areas Act (Act 9 of 1987) that full ownership of the land they occupy. applied to the 23 so-called ‘coloured · The Extension of Security of Tenure reserves’ in the Western Cape, Northern Act, 1997 (Act 62 of 1997), which Cape, Eastern Cape and Free State. protects occupants of privately-owned Land reform in South Africa since 1994, in farms from arbitrary eviction and all categories, has been painfully slow, the provides mechanisms for the reasons for which remain the subject of acquisition of long-term tenure security. intense debate. The one bright spot is the · The Interim Protection of Informal Land recent acceleration in the settlement of Rights Act, 1996 (Act 31 of 1996), land claims, although the CRLR has been intended as a temporary measure to criticised for achieving this through secure the rights of people occupying ‘cheque-book’ solutions and the land without formal documentary imposition of derisory settlements on some rights, pending the introduction of more claimants. The new LRAD programme is comprehensive reforms. In the absence gradually replacing SLAG as the principal of such legislation, the Act has been extended annually and remains in force. means of redistribution, but it has yet to be · The Communal Property Association seen how effective, and how inclusive, this Act, 1996 (Act 28 of 1996), which will be. Substantial reform of land tenure, created a new legal mechanism for the millions of households living on whereby groups of people can acquire private farms and in the former homelands, and hold land in common, with all the has yet to get under way, but extensive rights of full private ownership. debate is expected in the months ahead · The Transformation of Certain Rural around the recently-published Communal Areas Act, 1998 (Act 94 of 1998), Land Rights Bill.

11 Land reform and sustainable livelihoods in South Africa’s Eastern Cape province Chapter 4: Land reform in the Eastern Cape

In the Eastern Cape, all aspects of land reform (with the possible exception of the labour tenants programme) have direct relevance and potentially major implications for millions of people. A total of 9 292 restitution claims have been lodged by people in urban and rural areas, in the former homelands and former white areas, some for substantial tracts of land.

here is widespread demand for working relationship with local govern- redistribution, for purposes of ment and other role players in the East residential settlements, agricul- London area, to the point where it has tural projects and municipal transferred a substantial portion of its Tcommonage. The collapse of land adminis- budget and responsibilities for land reform tration systems in the former Ciskei and to the district municipality (see below). Transkei, ongoing uncertainty around the PDLA has also, in the absence of compre- status of land rights in communal areas, hensive national policy on tenure reform in and ongoing evictions from commercial communal areas, attempted to broker farms combine to create a pressing need interim solutions that will facilitate devel- for tenure reform across all land types. opment on communal land, with mixed As in the rest of the country, two state results. institutions have been created to mange Despite the many achievements of these land reform – the Eastern Cape Regional institutions, however, land reform in the Land Claims Commission (RLCC), respon- Eastern Cape faces many of the same sible for the restitution programme, and the challenges as elsewhere in the country, provincial office of the Department of notably limited budgets, lack of policy Land Affairs (PDLA), responsible for all direction in key areas, cumbersome inter- other aspects of land reform. Both of these nal procedures, inadequate co-operation have proved themselves to be effective between and within the different spheres of and innovative in their implementation of government (national, provincial and land reform, and each has pioneered new local), and constraints imposed by the processes that have impacted on national national land reform policy itself. policy. The RLCC, in partnership with a A range of other institutions – govern- local non-governmental organisation mental and non-governmental – are also (NGO), has filled a major gap in policy involved in land reform in the Eastern around the settlement of so-called better- Cape, to varying degrees. Several national ment claims, and has set up the first Settle- government departments – the Department ment Support and Development Planning of Water Affairs and Forestry (DWAF), the unit in the country to provide co-ordinated, Department of Public Works, the Depart- long-term support to restitution beneficiar- ment of Environmental Affairs and Tour- ies. The PDLA – which offers a total of ism (DEAT) and the Department of fourteen distinct ‘products’, or services Defence are involved in their capacity as (see Box 1) – has developed a close holders of large areas of land. Provincial

12 Chapter 4: Land reform in the Eastern Cape

Box 1: 14 products of the Eastern Cape DLA

· Land development objectives (LDOs) · Residential settlement and agricultural smallholdings · Land title adjustments · Commonage projects · Small-scale agricultural projects · Other redistribution projects · Transformation of parastatals · Forestry projects · Equity share projects · Extension of Security of Tenure Act · State land management · State land disposal · Communal land administration · Tenure projects

departments with a direct role in land ment committees set up to approve LRAD reform are the Department of Agriculture projects. (DOA), which is currently making state NGOs and community-based organisa- land available for redistribution to emerg- tions (CBOs) involved in land reform are ing black farmers and providing support not numerous, but make an important services to land reform beneficiaries, and contribution to all aspects of the pro- the Department of Provincial Treasury, gramme in the Eastern Cape. A marked Economic Affairs, Environment and Tour- disparity exists between the level of NGO ism, which is closely involved in negotia- activity in the former ‘white’ areas of the tions around the future management of province and the former homeland areas of nature reserves being returned to former Ciskei and Transkei. Ciskei, with closer owners under the restitution programme. proximity to, and integration with, the In the sphere of local government, engage- urban-industrial heartland of the Eastern ment with land reform is largely at the Cape is somewhat better off in this regard level of the district municipalities (as than Transkei, where the few NGOs based opposed to the primary-level local munici- in the territory struggle to survive finan- palities), which includes making provision cially and to reach remote rural areas. The for land reform projects within integrated most prominent NGO in the land sector in development plans, provision of infrastruc- the Eastern Cape is the Border Rural ture such as water and roads, and planning Committee (BRC), an affiliate of the of resettlement areas to include housing, National Land Committee based in East clinics, schools and other servi-ces. The London. BRC operates largely within the state-owned Land Bank has, of late, began area of the Amatola District Council advising its black clients on the opportuni- (ADC), the area around East London, and ties presented under LRAD and, along is active in all aspects of land reform, with PDLA, the Department of Agriculture including working directly with communi- and farmers’ unions, sits on district assess- ties in an advocacy capacity and

13 Land reform and sustainable livelihoods in South Africa’s Eastern Cape province undertaking implementation work on of policies or programmes relevant to the behalf of the PDLA and the RLCC. In the communal areas. During 2001 PDLA Transkei, the area with greatest need and opened an office in Umtata, the former lowest presence of NGOs, the Transkei Transkei capital, which officials described Land Services Organisation (Tralso) has as an indication of the department’s com- battled to overcome severe funding and mitment to tackling land administration management problems and has recently issues in the former homelands, even in emerged as a vocal advocate for local the absence of clear policy guidelines at needs and an able partner working with the national level. By October 2001, PDLA government agencies. The NGO Farm was renamed as the Eastern Cape ‘Land Africa opened an office in Umtata in 2001, Reform Office’, and had opened four but focuses on support to small farmers district offices, in Port Elizabeth, East rather than on land reform. Other NGOs London, Queenstown and Umtata. Inter- active in the land sector in the province views with Tralso, the leading land sector include the Eastern Cape Agricultural NGO operating in Transkei, highlighted Research Project (Ecarp), based in the institutional and resource constraints Grahamstown, which works mainly with inherited from previous regimes. Particular residents of commercial farms in Albany mention was made of limited capacity of district, and Calusa, an organisation that provincial and local government structures assists people in Sakhisizwe and to implement post-transfer settlement Emalahleni municipal areas to access land support and service delivery. With regard for grazing and agricultural purposes under the redistribution programme. to the Regional Land Claims Commission, A recurring theme throughout this there was a widespread impression in the research, raised by representatives of local research area that the commission had not communities, NGOs and government allocated sufficient resources to Transkei, departments alike, was the very limited and indeed it would appear that just a few benefits that the land reform programme officials are responsible for processing had so far delivered to residents of the restitution claims in that area. Unlike former Transkei. Closely linked to this was PDLA, the RLCC has not decentralised its widespread frustration at the limited capac- operations beyond its East London head- ity of the range of institutions operating in quarters. Transkei, including national, provincial The following sections will deal in turn and local spheres of government as well as with each major area of land reform policy NGOs, community-based structures and in the Eastern Cape, outlining the key tribal authorities. PDLA officials stated that actors involved, the strategies adopted, the department had not been very active in progress with implementation, and the the former Transkei, mainly due to the lack likely impact on livelihoods.

14 Chapter 4: Land reform in the Eastern Cape Chapter 5: Restitution

In 2001 the total number of restitution claims lodged in Eastern Cape was officially quoted as 9 292, out of a national total of 68 878 (13.5% of the national total). Of these, 804 (11% of the Eastern Cape total) were classified as rural and 6 588 as urban. (CRLR 2001:14).

ike other provinces, restitution in nationally and provincially, and in the the Eastern Cape got off to a manner in which settled claims were slow start over the period 1995– calculated. A number of large group 2000, but the rate of settlement claims, such as East Bank (an urban claim ofL claims has improved greatly in the past in East London) were reclassified as two years. In May 2001, the Eastern Cape multiple individual claims. By the end of RLCC announced a five-year plan to fast- March 2002, the official number of claims track land claims in the province, promis- lodged in the Eastern Cape had risen from ing to settle about 2 000 claims per year. In 9 292 to 14 745. Of these, 1 776 (12%) order to boost its capacity, the RLCC has were classified as rural claims, and 12 979 contracted the services of a range of NGOs (88%) as urban. and private sector organisations, including This 2001–02 financial year also saw a BRC and Tralso, to validate up to 4 000 dramatic rise in the number of claims outstanding claims (the first stage of the settled, area of land restored, total expendi- settlement process) by June 2002. ture on restitution and other key indicators, Among the highlights of restitution in as shown in Box 2. The Eastern Cape now the province to date have been the return leads all other provinces in the country in of land to 800 Port Elizabeth families terms of these key indicators, with the forcibly removed in the 1960s and 1970s, exception of financial compensation in and a R233 million settlement in February KwaZulu-Natal (due to a high number of 2002 for 6 500 former residents of East urban claims settled by compensation) and London’s East Bank, who received a mix hectares of land restored in the Northern of alternative land and cash compensation. Cape (due to a number of extensive resto- Important rural claims already settled rations in semi-arid areas). include Chatha, Dwesa-Cwebe, The two NGOs most involved with Keiskammahoek and Makhoba, the latter restitution in the Eastern Cape – Tralso and being the first significant restitution case to BRC – identified a strong commitment on date to provide land for production to the part of the RLCC to accelerate the people living in Transkei. Despite having settlement of claims in recent years, espe- proportionately less rural claims than most cially rural claims which, in their view, had other provinces, the Eastern Cape, by been neglected up to recently in favour of March 2001, had managed to provide land urban claims. This commitment was to 63.6% of households in settled claims, closely associated with the appointment of while 36.4% received cash compensation. the current Regional Land Claims Com- This compares favourably with the na- missioner in July 1999. These NGOs also tional picture of 61.2% of claimant house- spoke of a new, positive relationship holds receiving land (CRLR 2001). between themselves and the RLCC, as The validation process led to major exemplified by the recent settlement of the revisions of the number of claims lodged, Chatha claim (see below) and the

15 Land reform and sustainable livelihoods in South Africa’s Eastern Cape province

Box 2: Eastern Cape restitution claims at 31 March 2001 and 31 March 2002

Claims lodged 9 292 14 745

Claims settled 2 898 9 222

Hectares of land restored 7 029 27 101

Households awarded land 1 843 –

Land cost R48.6 million R94.1 million

Financial compensation awarded R42.6 million R225.2 million

Households awarded compensation 2 364 –

Total restitution beneficiaries 23 367 81 751

Total restitution cost R91.3 million R368.8 million

(Source: CRLR 2001; CRLR 2002) involvement of NGOs in the validation claims settled. Tralso estimates there are campaign that began in the province on about 300 land claims in the whole of 1 July 2001. Transkei, but by the end of 2001 only one While considerable progress has been (Dwesa-Cwebe) had been settled. A small made in the settling of urban claims, both number of Transkei claims, such as in the Eastern Cape and nationally, largely Mkambati, North Pondoland (Bizana) and by means of cash compensation, less Caguba, have been prioritised by the RLCC progress has been with rural claims where for settlement during the year 2002–03. restoration of land is demanded. This can, The slow progress with rural claims has in part, be explained by the complexity of raised questions around the ability of the rural claims, in terms of the larger number restitution process to impact positively on of claimants per claim, the often-uncertain rural livelihoods. Cash compensation alone, boundaries of the land in question, the re- as provided in the majority of claims settled latively poor documentary evidence to date, cannot, in the absence of a clear supporting many such claims and, not development strategy, be seen as contribu- least, the challenge of acquiring land from ting to the creation of sustainable liveli- existing owners and occupiers in order to hoods. Nonetheless, for many claimants restore it to successful claimants. While these factors help to explain why rural who have established themselves in new claims might take longer to settle than homes, and for whom restoration of origi- urban claims, there is a widespread percep- nal land may not be feasible or desirable, tion among claimants and land sector cash remains the preferred, or perhaps the NGOs that the state has actually prioritised, most accessible, form of compensation. It is and committed most of its resources to, in the rural areas, therefore, where the urban claims, perhaps due to pressure from potential of a real transfer of land leading the better organised and more vocal urban to a significant im-provement in livelihood claimants or in order to be seen to be opportunities for the previously dispossessed making headway in terms of numbers of should be greatest.

16 Chapter 5: Restitution

In practice, however, the picture is not so something which occurred in many parts simple. Firstly, the cut-off date for restitu- of the Transkei between the 1920s and the tion claims, June 1913, falls well after the 1960s. To these can be added removals of colonial conquest of the Eastern Cape and African users from municipal commo- the wave of dispossession of African lands nages, areas surrounding many former that accompanied it. The bulk of claims in ‘white’ towns within what became the the Eastern Cape arise from the second ‘independent’ homelands. Over much of great wave of dispossession and forced the former homelands, and especially the removals, under the apartheid policies of Transkei, these are the only types of the 1950, 1960s and 1970s, which mainly restitution claims that exist, and they affected people living in urban areas and present major challenges to the land so-called rural ‘black spots’ (black settle- reform programme and the enhancement ments in ‘white’ areas). On commercial of rural livelihoods. farms, ongoing evictions of so-called ‘squatters’ continued throughout the Eastern Cape innovations in twentieth century, but most such removals restitution policy went unrecorded, former communities The Eastern Cape Regional Land Claims have now been scattered and destroyed, Commission has pioneered a number of and such claims have not surfaced in large innovations in restitution policy that not numbers. In the former homelands, out- only address the pressing needs of claim- right dispossession of people on a large ants in the province but have broadened scale – with the exception of ‘betterment’ – the scope of restitution policy nationally. did not take place. Rather, these areas Most notable amongst these have been the suffered a continuous influx of people process leading up to the Restitution forcibly removed from other areas, and a Indaba (summit) held in July 2000, the consequent erosion of their effective land subsequent settlement of the Chatha rights. betterment claim, and the establishment of Nevertheless, a number of significant a dedicated Settlement Support and Devel- forms of dispossession did take place in opment Planning (SSDP) division within the former homelands. One was the proc- the RLCC. Of particular importance in all ess of betterment, the forced villagisation of these initiatives has been the strong of rural dwellers carried out throughout the links created between the RLCC and a homelands between the 1950s and 1970s, which led to destruction of houses, dam- range of NGOs and government structures, age to property and the loss of much particularly local government. grazing and ploughing lands (De Wet The Restitution Indaba was held in East 1995). In the early years of the restitution London in July 2000, and emerged out of process (1994–98), it would appear that lengthy interaction between BRC and the the RLCC did not consider betterment as a RLCC around the question of how better- valid basis for restitution claims, which, ment claims should be treated. The Indaba along with widespread ignorance of the was attended by representatives of a range restitution process in rural areas, meant of national and provincial bodies, includ- that only a small proportion of potential ing the national Department of Land claims based on betterment were lodged Affairs, represented by the Director- prior to the deadline of 31 December 1998. General and other senior staff, the Com- Another form of dispossession that has mission for the Restitution of Land Rights, given rise to restitution claims in the represented by the Chief Land Claims former homelands was the excising of land Commissioner, other regional land claims from African communal areas for the commissioners, and representatives of creation of state forestry plantations, NGOs such as the National Land Commit- agricultural projects and nature reserves, tee and Legal Resources Centre.

17 Land reform and sustainable livelihoods in South Africa’s Eastern Cape province

The positive working relationship between claimants before and after the settlement of BRC and the Eastern Cape RLCC was key their claims, collectively developing a to bringing this event about, but so too was comprehensive plan for the development the persistent championing of the Chatha of the area and identifying potential inputs case by BRC, often in the face of consider- by various government and non-govern- able official opposition. In the run-up to mental organisations. The division works the Indaba, BRC was commissioned by the closely with the RLCC communications RLCC to develop proposals as to how such team, and together they have been suc- betterment claims could be settled. Central cessful in forging links with government to these proposals was the argument that departments such as Water Affairs and betterment should rightly be seen as a form Forestry, Agriculture and Land Affairs, of dispossession, and should therefore be district councils, municipalities, NGOs and covered by the definition contained within various donor organisations: the Restitution of Land Rights Act; further- The SSDP Division focussed on more, that even where land was no longer providing settlement support and available for restoration, communities that development planning to individuals had been subjected to betterment could and communities in a number of benefit from a comprehensive package of projects throughout the province. development assistance that might include The need for post settlement support individual compensation along with the in projects has increased … This has provision of community services and led to staff working as members of infrastructure. These proposals were regional teams and the formulation considered at the Indaba and were subse- of suitable and sustainable restitu- quently adopted as policy by the national tion packages in consultation with CRLR and the Minister of Land Affairs. claimants. In conjunction with this, They also formed the basis for the final all affected state departments and settlement of the Chatha claim, which is other support organisations in the discussed in more detail below. process must be involved … In line with a growing national trend, (CRLR 2001:17). the Eastern Cape RLCC is taking an in- Examples given by the RLCC of activities creasingly ‘developmental’ approach to undertaken, or facilitated, by SSDP include settlement of restitution claims. This landuse planning, serviced site and concept is generally used to indicate a housing plans, agricultural planning and focus on the longer-term prospects for infrastructural development – including successful claimants and attempts to use water reticulation, stock dams, roads, restitution awards as the basis for broad- electrification, telephones, fencing and based development, including the promo- creation of community assets such as tion of sustainable livelihoods. While schools, clinics and multi-purpose halls. considerable emphasis is given at the While much of the work of SSDP involves national level to the need to involve multi- developing the capacity of beneficiaries to ple role-players in provision of services to manage the funds and other assets beneficiaries, and for restitution to deliver awarded to them, and linking them with more than just land or cash compensation, agencies that can assist them in this, this has not always been achieved in particular attention is also paid to acces- practice and many communities have seen sing funding and assistance that goes minimal improvement in their lives follow- beyond the usual restitution award. This ing the settlement of their claims. includes negotiating with government In order to address the problem of post- departments such as education, health and settlement support, the RLCC established agriculture, to make budgetary provision the SSDP division, the first of its kind in for such communities, accessing supple- the country. This unit works closely with mentary funds from a range of donor

18 Chapter 5: Restitution

organisations, and negotiating with local extended to the provision of help to government structures to ensure that local the claimants in creating a develop- development plans take account of, and ment plan for the area (CRLR 2001). where possible complement, the efforts of Given that the claimants had established the RLCC and of beneficiaries themselves. structures and grown accustomed to living in the resettlement areas of villages of The Chatha restitution claim Skafu, Nyanga and Ndlela, it was decided Chatha village is situated in that restoration of the original land and a Keiskammahoek, in the area of jurisdiction return to the pre-betterment settlement of Amatole District Municipality (ADM). It pattern were not possible or desirable. has about 420 households and a popula- Acquisition of alternative land was also tion of approximately 2 520 people. The impractical as no suitable land was avai- Chatha community was forcibly relocated lable in the immediate vicinity. Having in 1962 through implementation of the ruled out land-based options, the negotia- betterment policy of the apartheid govern- tors opted for a package that balanced ment. Households lost their thatched huts beneficial financial compensation with and had their residential sites and arable development support, consisting of three land greatly reduced, thereby suffering a parts: financial compensation, develop- reduced capacity to obtain a livelihood ment resources and upgrading of tenure on from the land (CRLR 2001:18). 2 852ha of existing communal grazing After 1994, the Chatha community land to full (freehold) collective owner- wished to lodge a restitution claim for its ship. An amount of R12.5 million was lost land rights, but was at first deterred agreed as cash compensation, equivalent from doing so as the Eastern Cape RLCC to R31 697 per qualifying household, to be felt that betterment was not a racially divided in two equal shares. Half the discriminatory practice and did not there- money (an amount of R15 848.75) was fore fall under the Restitution of Land paid directly to each household family as Rights Act. With help from BRC, the financial compensation, while the other community challenged this, and succeeded half (a total of R6.25 million) was pooled in lodging a claim on behalf of 334 house- for community development purposes. holds directly with the Land Claims Court The detailed development plan for in December 1998. Chatha was prepared collectively by the In early 1999 DLA approached the RLCC, BRC and the Chatha community applicants to suggest an ‘out of court’ and, according to BRC, aims to ensure negotiation process, as an important issue local-level co-ordination of various gov- of principle was at stake that should be ernment departments and brokering-in of resolved through dialogue rather than be maximal state resources. All key govern- defined in the more adversarial arena of mental organisations, namely DWAF, the courts. Negotiation began between the DLA, the provincial Department of Agri- claimants, DLA and the RLCC and contin- culture and the then Amatola District ued until the end of 1999. In January Council, had to agree to the plan before it 2000, DLA and the RLCC prepared a could obtain final approval. Three priority formal ‘mandate to negotiate’ which areas were identified – agriculture, forestry captured the key outcomes of the negotia- and infrastructure – and approximate tions and the claim was officially settled in budgets prepared for each. Negotiations October 2000. According to the Commis- were begun with the departments of Water sion: Affairs and Forestry, Agriculture and Land the Border Rural Committee … Affairs, along with ADC, to develop played a leading role in empowering detailed plans for implementation. In terms the Chatha community in the lodge- of institutional arrangements, it was agreed ment of its claim. This assistance between the RLCC and the claimants that

19 Land reform and sustainable livelihoods in South Africa’s Eastern Cape province the pooled share of the compensation was settled at a cost of R102 million, half would be administered and held by ADC, of which will go directly to claimants and but would be released and used on the half to a local development fund. As with authority of the Chatha steering committee. the case of Chatha, the Keiskammahoek Development is in the hands of a 12- claim has been cham-pioned by BRC, and person Project Steering Committee, com- the settlement has drawn in a variety of prising seven members of the community roleplayers, including the Amahlati Local plus representatives of DLA, the provincial Municipality, the National Development Department of Agriculture, RLCC, DWAF Agency and the Land Bank. and ADC. BRC facilitated the process, arranged the first meeting of the committee Forestry claims and briefed it on the development plan. Many of the restitution claims made within On 23 July 2000 the community for- the former homelands are on land used for mally adopted the Chatha development state forests. The Eastern Cape has the plan, which proposed the following: great majority of forestry claims in the · Establishment of a Chatha Development Trust, comprised of residents, to whole country, many of them in Transkei. manage the development process. The processing of restitution claims on · Appointment of Amatole District forestry land has coincided with another Municipality to administer the commu- major national-level government process, nity fund. the so-called ‘restructuring’ (privatisation) · Appointment of an Integrated Project of state forests. The Department of Water Steering Committee, comprising repre- Affairs and Forestry and other role-players sentatives of the beneficiaries, relevant are under pressure from the National government departments, ADM and Treasury to accelerate this process, as state various service organisations. This forests are estimated to cost the state committee is responsible for driving the R1 million a day to run. This has led to process until the Chatha Development forestry claims being handled somewhat Trust is formally registered to take over differently to other claims and, in the the responsibility. Eastern Cape, the establishment of a · The restitution award earmarked for specialist Forestry Claims Unit within the community development will be used to RLCC in East London, the first of its kind leverage funding and other assistance in the country, supported by the United from government departments and Kingdom’s Department for International donors for the proposed development Development (DFID). projects. DWAF groups its forests into categories According to BRC, a highlight of this A, B and C. Category A has been settlement has been the generation of prioritised for privatisation, Category C is considerable government interest in and likely to be handed over to community commitment to the village. One of the consequences is that resources over and organisations or local government struc- above the restitution award are being tures, and Category B will probably be released, giving the Chatha community a divided between the two. As may be seen unique opportunity to benefit from the from Table 1, all of the category B and C attention and resources being directed claims, and over half of the category A towards it. claims, are in the Eastern Cape. The re- The precedent set by the Chatha claim maining category A claims are in Limpopo was followed by the settlement of a second /Mpumalanga (50) and KwaZulu-Natal major betterment claim, at Keiskammahoek, (22) (Gwanya 2000). in June 2002. The claim, affecting over The first group of forests to be put out 2 000 households in seven communities, to tender by DWAF in the Eastern Cape is

20 Chapter 5: Restitution

the Transkei North package, centred on ring to make deals with large-scale inves- , which involves approximately tors, and claimants and surrounding com- 330 000ha in all. In August 2001, a lease munities are expected to fall into line. The was signed with Singisi Forest Products, a RLCC stated that whereas DWAF sees its consortium led by the Hans Merensky role as protecting the forests as a national company, for 72 000 ha of forestry at a economic asset, and promoting the inter- rental of R6 million per year. This money ests of investors, the RLCC sees its role as will initially be paid to the state, but will be protecting the rights of restitution claim- held in trust for land claimants pending ants. This does not always make for an settlement of their claims on the forestry easy working relationship. The Forestry land. Singisi Forest Products includes Land Management Unit established by among its shareholders, Singilanga Direc- DWAF, based in Pretoria, was criticised as torate Trust (10%), representing communi- taking little practical action to promote the ties neighbouring the plantation areas, the interests of local people and of they work- National Empowerment Foundation (9%) ing with a narrow interpretation of black and Safcol (6%). The company has adopted empowerment that favours ‘big, famous, a policy to include empowerment criteria black businesses’ over poor local people. Nevertheless, Eastern Cape RLCC argues when outsourcing contracts, and has set a that it has pioneered close co-operation target that 25% of new procurement from with DWAF, which has now been taken up within South Africa should be from busi- by the national office of DLA. nesses owned by previously disadvantaged Given the differing timescales at which individuals. The company has also estab- forestry privatisation and restitution are lished several initiatives to support small proceeding, it would appear likely that enterprise in the local community, includ- many privatisation agreements will be ing mushroom harvesting and processing, finalised prior to the settlement of affected training women in sewing, and supporting claims. Indeed, this would appear to be the a community coffin business. The com- deliberate policy of DWAF and to be pany has also been involved in document- implicitly (if reluctantly) accepted by other ing and supporting land claims on planta- state institutions, including the RLCC. tion areas, and developing agreements with According to DWAF, any lease agreements claimants (Ashley & Ntshona 2002). entered into by the state, as the current Interviews with senior management in landowner, will be taken over by claimants the RLCC and DWAF in the Eastern Cape if and when they succeed with their restitu- suggest that there are important differences tion claim. between the approach of these two organi- As part of the privatisation process, sations to forestry claims and privatisation. DWAF has attempted to create a number of According to the RLCC, DWAF had ‘a avenues by which local people can share very limited view of development’, prefer- in the benefits. These include a so-called

Table 1: Forestry claims National Eastern Cape Eastern Cape as % of national Category A 152 80 53 Category B 39 39 100 Category C 98 98 100 TOTAL 289 217 75

21 Land reform and sustainable livelihoods in South Africa’s Eastern Cape province black empowerment policy, in terms of Restitution claims on nature which potential bidders must include reserves black-owned enterprises as shareholders, Like the case of forestry, restitution claims and a ‘community share’ policy whereby on state-owned nature reserves constitute a communities living adjacent to forests, significant proportion of land claims in many of whom currently enjoy various Transkei and another situation where direct usufruct rights, will receive benefits either access to land may not be an outcome of in cash or kind. Restitution claimants successful claims. Claims on nature re- effectively constitute a third constituency serves include such well-known areas as that must compete for a portion of the Dwesa-Cwebe, Mkambati, Mt Thesiger, empowerment stake or the community Silaka Nature Reserve and Hluleka (Kepe share, but is not guaranteed either. Once a 2001:11). Of these, Dwesa-Cwebe is the claim is successful, the claimants, in only one to be settled to date, but others theory, stand to receive the full rental such as Mkambati are, according to the income negotiated between the state and the concession holder, but it is yet to be RLCC, close to settlement, and are likely seen how this will work in practice. to follow a similar route. This section looks The separation of the privatisation and at the main points of the Dwesa-Cwebe restitution processes is leading to growing claim. dissatisfaction among claimants, according The area of Dwesa-Cwebe straddles the to the RLCC Forestry Claims Unit. Claim- Mbashe River and includes distinct com- ants, it is said, feel they are entitled to the munities living on either side. The area maximum possible benefits from the land was declared a protected forest at the turn they are claiming, and that privatisation of the twentieth century and residents were should be delayed until restitution claims forcibly removed in the 1930s. Under the have been settled. This, it is believed, Transkei homeland administration, the area would allow the claimants (once they was declared a nature reserve and adjacent become the owners) to be fully involved in communities were denied the right to graze the negotiations around the use of ‘their’ livestock or to gather firewood and other land and in a much stronger bargaining wild materials within the reserve (Fay & position with regard to government and Palmer 2000:195). With the transition to prospective contractors. democracy in 1994, the local communities The push to privatise state forests that lodged a restitution claim on the reserves are the subject of restitution claims, and and also engaged in direct action by the potential exclusion of successful driving their livestock into the reserves and claimants from direct use of the land harvesting wild materials. Throughout this concerned, clearly raises serious questions period, and during the subsequent settle- around government priorities and commit- ment of the claim, the claimants were ment to sustainable livelihoods. The supported by Tralso, which helped unite benefits accruing to successful claimants the disparate communities behind a single are likely to be limited to whatever rentals claim. are agreed between the DWAF and private The Dwesa-Cwebe claim proved to be a contractors, and whatever share of the test case for the RLCC and for DLA na- black empowerment or community share tionally, raising as it did far-reaching components, if any, the claimants can questions about who represented the secure. This approach precludes other community and, in the context of powerful options based on direct control of the land tribal authorities and traditional leaders, to in question, either for forestry or other whom, or to what structure, ownership of purposes, which may in the longer term be the land should be restored. After nearly more beneficial and more sustainable both three years of inconclusive negotiations, for the claimants themselves and for other the RLCC decided in February 1998 to poor communities in the areas concerned. submit the claim to the Land Claims Court.

22 Chapter 5: Restitution

The case was subsequently withdrawn · claimants will continue to reside on the from the court and eventually settled out of land on which they presently reside and court in June 2001 (CRLR 2001:19). to which some of them were forcibly The settlement agreement for Dwesa- moved, and the land currently used as Cwebe, involving as it did a wide range of nature reserves should continue to be stakeholders and a sensitive natural envi- used as such ronment, has set the standard for what is · the land presently occupied (outside of likely to be series of similar settlements for the reserve) will become the property of nature reserves throughout the Eastern a specially-formed Communal Property Cape. This complex agreement, which Association. took nearly six years to produce, was the In terms of the agreement, a total of product of multiple negotiations between a 5 283ha was restored in full ownership to wide range of stakeholders, including the claimants, consisting of the Dwesa and Eastern Cape Nature Conservation, the Cwebe nature reserves, the Haven Hotel RLCC, the Department of Land Affairs, and a number of holiday cottages. The Amatole District Municipality, the claim- provincial Department of Economic and ants and the wider communities of Dwesa- Environmental Affairs has agreed to lease Cwebe (not all of whom formed part of the the twin reserves for 21 years at a cost of claim). R100 000 per year, to be paid in advance The following are the key features of (that is, R2.1 million up front). The depart- the settlement agreement (CRLR 2001:19): ment has also agreed to waive any com- · the State will hand over the two nature pensation for improvements to the Haven Hotel by the Transkei Development Corpo- reserves of Dwesa and Cwebe to a trust ration (Tracor). The claimants will be representing the claimants involved in the running of the reserves, · the nature reserve will be managed and it is envisaged they will eventually jointly by the claimants and nature take over management. They will be conservation authorities compensated R1.6 million for agreeing not the claimants must benefit economically · to take physical occupation of the land and from the reserves in a meaningful way to preserve it as a protected conservation · the claimants must be given access to area. The 2 382 households involved in the marine resources adjacent to the claim will also receive a total of reserves in accordance with applicable R10 576 080 in grants, to be paid to a trust laws and regulations as well as any for settlement planning, agricultural, regulations that may be drawn up and educational and development projects, that adopted by the Joint Management will be managed by Amatole District Committee in this regard Municipality on behalf of the claimants.

23 Land reform and sustainable livelihoods in South Africa’s Eastern Cape province Chapter 6: Redistribution

Redistribution projects, of various kinds, constitute the bulk of land reform activities carried out by the Eastern Cape provincial office of the Department of Land Affairs. By October 2001, PDLA had completed approximately 110 land reform projects (in all categories), spending approximately R100 million in capital budget, with another R100 million worth of projects in the pipeline.

LA’s capital budget for 2001/ collective enterprises, and a shift in policy 2002 is R58.5 million, which towards a more private-entrepreneurial the Provincial Director sug- model of farming under the Land Redistri- gests is only about one-third of bution for Agricultural Development theD budget required to meet the land programme. redistribution targets set by politicians. The Progress with redistribution in the director of Tralso (Simukonda 2001) also Eastern Cape has accelerated greatly in the argues that PDLA will require a greatly past year. In November 2001, ten farmers increased budget and improved staff from Cala district in the Transkei received capacity, for which there is currently no ownership of 14 farms in the Beeskraal provision, if it is to meet its target of area, comprising 4 800ha. Another project transferring 200 000ha per year. This involving 10 000ha on the Umnga Flats in represents almost four times the total the Tsolo-Ugie area is also nearing com- amount of land approved for transfer in the pletion. A proposal for the release of province over the six-year period 1995– 13 000ha of state land in the Ongeluks 2001 (that is, less than 52 600ha in total). area in Maluti was also reported to be Redistribution strategy in the province awaiting ministerial approval. In February has, like elsewhere, focused mainly on 2002, a R1.9 million community farming groups of black people pooling their project was launched by Maasdorp- grants, and other resources, to purchase Jurishoek Community Property Associa- white-owned commercial farms. Most such tion at Balfour. This involved 249 house- projects are based on the creation of a holds living on state land in the Ciskei communal property association (CPA), a acquiring some state land and also pur- relatively new form of legal entity that chasing private farms for olive and vegeta- allows groups, democratically constituted ble production. In June, 2002, the in terms of a written constitution, to ac- Masakhane Communal Property Associa- quire property collectively. The CPA tion, representing 100 beneficiaries living model does not require that land remains on state-owned land at Cathcartvale, collectively owned after initial purchase, or acquired title to 674ha using the Settle- that agricultural activities be carried out on ment/Land Acquisition Grant. According to a collective basis, but this has been the figures supplied by the DLA (12 August pattern up to recently. Since 2001, how- 2002), a total of 151 redistribution projects ever, there has been a shift towards subdi- have been approved for implementation in vision of land and more individual or the Eastern Cape, including LRAD, com- household-based production, influenced monage and SLAG projects (see Table 2). by the problems experienced in many A majority of all land redistributed (59%)

24 Chapter 6: Redistribution

has been for non-agricultural purposes zones. The great majority of the rural poor (that is, settlement), with the rest divided are located in the former homelands, often into agricultural projects (under both far from the nearest ‘white’ farms. While SLAG and LRAD), share equity schemes many have access to some land for grazing (whereby employers buy shares in existing or cultivation purposes, it is rarely enough agricultural enterprises), and municipal to provide a substantial contribution to commonage (land under the control of household livelihoods and is typically far municipalities). from markets and the necessary support Probably the biggest challenges facing services. It is these rural people (along redistribution in the Eastern Cape are the with farmworkers) who are the obvious acquisition of suitable land in appropriate ‘targets’ for land redistribution, but relocat- locations and ensuring that beneficiaries ing people over large distances to an obtain the support necessary to enable uncertain future on new land, with the them to secure a livelihood. The shortage rupture of existing social and economic of appropriate land is a direct result of networks this implies, is something that is apartheid geography and the enforced not viewed favourably either by the state distribution of the population into racial or, as far as can be ascertained, by the bulk

Table 2: Redistribution projects in the Eastern Cape by year and type of project 1995–2002 Year/type No. of projects Households Female-headed Hectares households 1995 1 102 1 200 1996 5 430 3 973 1997 7 2 380 8 917 1998 13 4 959 15 583 1999 22 7 131 14 165 2000 30 13 114 17 114 2001 49 8 402 33 302 2002 17 227 5 881 Unspecified 7 2 176 994 Total 151 38 921 101 129

LRAD 42 517 99 18 624 Commonages 17 1 635 25 612 Share equity12 9 369 12 230 SLAG agriculture 40 1 865 624 22 483 SLAG settlement 29 22 986 11 746 SLAG agriculture 11 2 549 10 10 432 and settlement TOTAL 151 38 921 733 101 127 (Source: DLA, Pretoria)

25 Land reform and sustainable livelihoods in South Africa’s Eastern Cape province of the rural population. Thus, redistribution and the state has up to recently been to date has largely been limited to people reluctant to part with such land for redistri- within commuting distance of commercial bution purposes. farms or a small minority of ‘pioneers’ State-owned agricultural land in Ciskei willing to relocate to a new life. This and Transkei now falls largely under the problem is particularly acute in the control of the Eastern Cape Department of Transkei, with its large territory and dis- Agriculture. Interviews with senior DOA tances of up to 100km to the nearest staff in early 2001 suggested that the ‘white’ farms. To compound the problem, department was not particularly interested the new LRAD grants are not available for in the land reform programme of DLA. production purposes in communal areas as Rather, it saw its role as protecting the there must be a land purchase involved in economic value of agricultural land under order to qualify. its control and preventing it being squan- In this context, land cannot be seen dered on ‘sub-economic’ (that is, subsist- simply as an undifferentiated commodity. ence) activities. State-owned agricultural Rather, land with agricultural potential that land that has been disposed of since 1994 is located close to areas of high population has, therefore, largely been transferred concentration takes on a special value. outside the land reform programme, going Thus, it is not surprising that commercial to better-off farmers who buy or lease from farms along the borders of the former the state. Since 2001 there has been a Ciskei and the western border of Transkei closer working relationship between the have featured prominently in redistribu- provincial DOA and DLA in the Eastern tion, an arrangement that seems to suit Cape, largely as a result of the roles as- both buyers and sellers. The ‘demand-led’ signed to each by the national government approach to land reform taken by DLA under the LRAD programme. This has has, up to now, prevented any systematic seen land reform grants being provided to buying-up of land in strategically impor- some long-standing tenants on state land to tant areas, but has rather depended on enable them to buy out their holdings. The numerous unco-ordinated negotiations first handover of state-owned land under between individual buyers and sellers. the Land Reform Programme was made by PLDA in the Eastern Cape, however, seems the Minister of Agriculture and Land to have gone further than other provinces Affairs at Port St Johns in May 2001, when in assisting would-be buyers to find suit- title deeds were given to farmers who had able land. This has included maintaining been renting the land from the state for up close contacts with the state-owned Land to 20 years. Such tenants, however, are Bank, which processes large numbers of typically better-off farmers who acquired repossessed farms, as well as with estate land under the former homeland system agents and land-owners, and advising and are now consolidating their position. applicants about land that is available in Such consolidation precludes wider debate their area. about the socio-economic value of such Apart from privately owned farms in strategically located land and its potential ‘border’ areas, the other category of strate- to promote rural livelihoods. In September gically important land is state-owned (that 2001, the provincial Department of Agri- is, uninhabited) land within the former culture announced plans to dispose of a homelands. In Transkei, this includes large further 10 000ha by sale or lease, using a tracts owned by the now-defunct parastatal newly delegated ‘power of attorney’ (Daily Transkei Development Corporation, as Dispatch 2001f). Part of this land was well as the forestry land and nature re- subsequently sold to a group of LRAD serves discussed above. While much of beneficiaries for a cattle farming project, this land is the subject of restitution claims, while a smaller portion was restored to a large areas suitable for agriculture are not, group of restitution claimants.

26 Chapter 6: Redistribution

Gasela Gasela is a community of 53 house- holds living on a former white-owned farm The case of the Gasela community in near that was incorporated into former Ciskei provides valuable lessons in the Ciskei in 1978 as part of homeland both the problems and the opportunities consolidation. The community resisted associated with the redistribution pro- eviction from the farm in 1993 when it was gramme, and land reform more generally. leased to a white farmer by the then Ciskei This case has been championed by the government. This marked the first involve- Border Rural Committee, which has ment of the community with BRC, which worked with the community over a nine- assisted them to resist eviction. In 1996 a year period. BRC has extensively docu- land claim lodged by the Gasela commu- mented this experience and used it to nity was rejected by the RLCC, presum- develop new ways of engaging with ably on the basis that the community had communities around land reform. Among not actually been deprived of their land the many lessons to emerge from this rights, and they were instead referred to experience are the difficult position that the redistribution programme of DLA as a NGOs can find themselves in when acting means of obtaining ownership of the land. as intermediaries between communities In October 1996 BRC submitted a pro- and state agencies, and a shifting posal for the transfer of the land to the conceptualisation of the link between land Gasela community, along with a develop- rights, livelihoods and the development ment plan for the land. This was at first process. supported by DLA, and by the local

Box 3: Eight lessons from Gasela

1. Poor, unskilled people can farm successfully on condition that they are provided with adequate start-up resources and consistent extension support. 2. In former homeland areas and on state land, the distinction between pre- and post- settlement phases is counter-productive. Programmes of livelihood enhancement should be designed and implemented before land transfer is effected. 3. In order to promote the enhancement of livelihoods, it is necessary to implement approaches that integrate all key land-related aspects, especially land tenure (inclu- ding administration) and land-use planning. Limited success will be achieved if atten- tion is paid to tenure while land use is ignored, and visa versa. 4. An integrated approach to development should be backed up by detailed methodolo- gies that address all key challenges that must be met in order to maximise livelihoods. 5. If an organisation adopts the livelihood approach, it must be committed for the long haul. 6. It will be difficult to fast-track land redistribution without a clear and appropriate land policy in place. Dramatic shifts in policy create constraints to delivery and should be kept to a minimum if land redistribution is to be improved and fast-tracked. 7. The decentralisation of land reform implies that it is essential for NGOs to establish alliances and partnerships with key role-players in provincial and local government. 8. Land reform planning is most effectively co-ordinated at the level of district munici- palities. (Adapted from BRC (2001:29–31))

27 Land reform and sustainable livelihoods in South Africa’s Eastern Cape province authority (ADC), which had included These are of great value not only because Gasela as a priority in terms of its inte- of the lengthy experience at Gasela, but grated plan for the Stutterheim district, but because of the ability of BRC to capture was opposed by the provincial Department that experience, to reflect on it, and to use of Agriculture on the basis that the land- it in order to develop more appropriate and use plan was not economically viable. effective strategies to bring about sustai- This, according to BRC, led to DLA losing nable land reform. interest in the project. As a result, BRC adopted a new strategy, Magwa Tea Estate which it links to the rise of livelihoods Within the former Transkei, substantial thinking within the organisation. This strat- redistribution only began with the sell-off egy involved a shift from land rights to land of state-owned agricultural land to incum- use – or focusing on immediate livelihood bent tenants in June 2001. Prior to that, the issues rather than more abstract and longer- only redistribution project within the term rights issues – based on the perception territory was at Magwa Tea Estate. This that the informal land rights enjoyed by the project, and the adjacent Lambasi Farm community were actually quite strong and project, provide valuable insight into the that the community faced no imminent threat politics and thinking behind land reform of eviction. The community was thus en- and rural development in the area, and couraged to proceed with investing in and raise doubts about the compatibility of developing the land rather than wait for such thinking with the promotion of rural formalisation of its land rights. As a BRC livelihoods. document at the time explained: Magwa Tea Estate was established in Our new approach is innovative in the mid-1960s on land allocated by the that it promotes land utilisation prior Paramount Chief of Eastern Pondoland, to acquisition of land rights; indeed , at a time when the apartheid land utilisation is being used not government was attempting to develop the only to improve people’s livelihoods, former native reserves as distinct political but also to strengthen their claim to and economic entities and reward take transfer (BRC 2001:8). compliant tribal chiefs with showpiece The new approach promoted interim development projects. Violent resistance to (informal) arrangements for land adminis- ‘betterment’ and the creation of the tea tration – including subdivision of land into estate broke out during the Pondoland family allotments – and provided practical revolt of 1960, but people were support for a women’s garden project. subsequently removed. In the decades that On the basis of the success of this followed, Magwa was heavily subsidised approach, and with support from by the Transkei government and later by Stutterheim municipality, BRC and the the Eastern Cape provincial government. Gasela community embarked on a public Kepe (2001:56) cites various sources to campaign to persuade PDLA, ADC and demonstrate that the tea venture suffered DOA to proceed with the transfer of land. problems, including low winter Eventually, in March 2001, the transfer temperatures, poor management, was approved by the Provincial State Land corruption, ongoing labour unrest and Disposal Committee and forwarded to the spiralling wage costs, which greatly Minister of Land Affairs for final approval. affected its viability. After running at a loss The experience of Gasela has been for years, the company was liquidated summarised in a document prepared for along with other Eastern Cape parastatals the National Land Committee (BRC 2001). in July 1997. In this document, eight ‘lessons’ are After liquidation, Magwa continued to identified, which are have implications for operate under the Eastern Cape redistribution more generally (see Box 3). Agricultural Parastatals Restructuring

28 Chapter 6:Redistribution

Authority. By this time, however, and occurred in May 2000, with workers despite its financial problems, Magwa had complaining of corruption and been identified as a developmental node mismanagement, similar to what had been for the Wild Coast Spatial Development experienced before the change of Initiative (SDI). Towards the end of 1999, ownership (Daily Dispatch 2000a). workers and management took Magwa out Despite evidence of continuing of liquidation through a process that financial problems and questionable involved the purchase of the movable economic viability, DLA and the assets and the factory, using land provincial government are publicly upbeat acquisition grants provided by DLA under about the future of the co-operative, its redistribution programme. A workers’ claiming that it will be in profit by 2003 co-operative and a management company The land remains state owned but, (responsible for day-to-day operation of according to one newspaper report, DLA the estate) were formed, with all the considers it to belong to the adjacent workers and managers as equal communities (Daily Dispatch 2001a). DLA shareholders. In all, DLA provided grants claims that Magwa will start to share its of approximately R10 million to workers profitability with the local community (the and managers. A separate trust was formed supposed landowners) within three years, to represent the interests of members of either by paying rent or through some surrounding communities who claimed profit-sharing agreement. Such hopes are they had been removed from the land to no doubt necessary in order to justify the make way for the plantation. The trust was enormous expenditure by DLA, but would to receive R120 000 per year, plus 30% of appear to have little chance of becoming profits from the plantation, as a form of reality. ‘rent’. Why DLA would sink millions into The question of land rights at Magwa rescuing a bankrupt state entity remains a remains deeply confused. It would appear matter for speculation. Government’s fear that no formal land claim was lodged by of losing over 600 full-time jobs (and the dispossessed communities, seemingly many more seasonal ones) in a job-starved because the removal had been classified as rural area, and the possible political reper- a form of betterment and the RLCC at the cussions, is the most obvious explanation. time did not consider betterment as a valid Why the funding for such a bail-out should basis for a claim (Kepe 2001:56). come from the land reform budget, how- Moreover, despite the use of millions of ever, especially given that no discernable rands from DLA’s ‘redistribution’ budget, land reform was involved, is more difficult no redistribution of land took place, and to fathom. One possibility is the ready little effort has been made to clarify the availability of funds, given the failure of tenure rights of the various stakeholders. DLA at the time to spend large portions of Rather, the chaotic situation that prevailed its budget, and the need for DLA to be throughout the days of the Transkei seen to be achieving something in the – when the state, the paramount former homelands. Similar bail-outs of chief and the local communities all failing state companies were also being claimed rights over the land – has proposed by DLA in other parts of the continued. country at the time. It appears likely, By mid-2000, the problems that had however, that the pressure to use funds in plagued Magwa during the homeland era this way originated outside DLA itself, were back – workers were going unpaid, either among local politicians who felt they management was in crisis and allegations had something to lose from the collapse of of corruption were rife (Kepe 2001:62; Magwa Tea, or from national political plus interviews with Magwa management leaders. Pressure from the workers and and workers, April 2001). A major strike local communities also played a part, but it

29 Land reform and sustainable livelihoods in South Africa’s Eastern Cape province is difficult to determine through which once again facing a financial and channels they made this pressure felt, or management crisis, and was unable to pay why they were so successful. Even the its workers. According to the Daily choice of a workers’ co-operative as a Dispatch (2002b), ‘Senior DLA officials corporate model can be seen as an oppor- are adamant that the last thing needed is tunistic move by the state which, pre- another bail-out for the struggling vented by its own free-market policies plantation’. from investing directly in the company, rather hit upon the device of paying the Lambasi Farm subsidy to individual workers in the form A similarly opportunistic approach to rural of land reform grants. Thus, the state could ‘development’ can be seen at Lambasi be seen as having broken with the bad Farm, a former state farm on land adjacent economic habits of the past and to be to Magwa Tea Estate. Up to 1997, Lambasi investing heavily in ‘land reform’, while Farm was run jointly by Magwa Tea Estate the workers sacrificed their entitlement to a and Tracor, both of which went into liqui- land reform grant in order to buy a tempo- dation in 1997. This project is not an rary reprieve for an unsustainable enter- official land reform project, but illustrates prise and their own jobs. the type of thinking, and political oppor- Interviews with Magwa management tunism, current in rural development revealed that the grant from DLA was only thinking. sufficient to buy the company out of In 2000, the national Department of liquidation, with nothing over for much- Public Works announced the formation of needed investment in capital equipment. eleven community production centres Since then, turnover of the enterprise has (CPCs) throughout the country, one in barely been sufficient to cover wages and each other province and three in the other operating costs, with no reinvestment Eastern Cape. CPCs are special projects taking place. On top of this, the world within the department’s Community Based price of tea is in long-term decline, and is Public Works Programme, mostly involv- already well below the cost of production ing the rehabilitation of large, homeland- at Magwa. The chances of achieving era agricultural projects. The approach economic viability – with an inflated emphasises infrastructural development, workforce, weak management, no invest- ment capital, ageing plant stock and an with assumed economic benefits in terms unsellable product – would, therefore, of direct employment and provision of appear to be remote. Kepe’s (2001:62) goods and services to surrounding com- conclusion is key: munities. The projects being rehabilitated, it appears that Magwa Tea – unsuc- at great expense, were mostly spectacular cessful from the outset – survived for failures under the previous regime, and political reasons …. Those who ar- remarkably little debate has taken place gued that Magwa could become a about the wisdom of the current strategy. profitable private venture did so, it Also puzzling is how the Department of appears, in ignorance of the under- Public Works ended up with responsibility standing that the project had been for promotion of agricultural projects and established as a job creation venture related rural enterprises. Nevertheless, for the Mpondos. To be profitable Lambasi has emerged as a showcase and to provide good salaries, project of the Minister of Public Works, Magwa would have to lay off workers. , who originates from the area DLA’s motivation for a co-operative and who is closely related to the para- to be formed is therefore puzzling. mount chief, Botha Sigcau, (who provided Subsequent to fieldwork for this study, it the land for the farm in the 1960s), and the was reported in the press that Magwa was current paramount chief.

30 Chapter 6:Redistribution

Lambasi covers the areas of Hombe, among surrounding communities, although Mbotyi, Nkuzimbini, Manteko, Malangeni it was not clear what form it would take and Njombela. The project involves a and who would be the beneficiaries. A poultry farm, cultivation of maize and project steering committee has also been beans, as well as construction of an access established, which includes representatives road and rehabilitation of the water supply of each of the seven surrounding adminis- and sanitation in the area. Upgrading of trative areas. Most of the committee mem- farm buildings, fencing, farm equipment bers were employed by the project, but and workshops has already been com- nonetheless complained of being excluded pleted, four new broiler houses, a layer from key decisions. house, cash store and cottages have been Whatever the present and future prob- built. Construction of a milling plant and lems facing the Lambasi farm project, it electrification of the scheme are also well remains a strong favourite with the politi- advanced. The project has been the recipi- cal elite. The project was launched by ent of generous state funding, but as yet President in November has produced relatively little in terms of 2000. The following July, Minister Sigcau employment, business opportunities or and Minister of Agriculture and Land other benefits. Lambasi, like the other Affairs visited Lambasi and CPCs, is being run by the Independent joined in the harvesting of maize and Development Trust, a state-funded body. beans. Three months later, Minister Sigcau Lambasi has also been declared a develop- was back again, this time in the company ment node under the government’s Inte- of the Foreign Affairs Minister of the grated Sustainable Rural Development Democratic Republic of the Congo. The Strategy (ISRDS). Minister used the opportunity to make the Reports vary as to the amount spent on puzzling announcement that ‘in three to the project and the number of jobs created four years time the government plans to – published estimates of costs range from sell all CPCs back to the communities they R7.5 million to R25 million; in July 2001, serve’ (Daily Dispatch 2001g). 300 jobs were reported to have been While Lambasi is still in the early created, although in October newspaper stages, the evidence so far suggests that it reports quoted government sources saying is on course to be a spectacular failure, in that they ‘expected’ up to 5 000 jobs to be the tradition of numerous homeland-era created in the near future. Interviews with projects of its kind. While there is Lambasi management in August 2002 undoubtedly a great need for development revealed that a total of 17 full-time and creation of sustainable livelihood positions had been created, and up to opportunities in the Lambasi area, this 600 people are employed on a seasonal project is unlikely to meet that need. The basis. Although billed as a community-run project itself is not based on a considered project, Lambasi is effectively a state enterprise, entirely funded by a national analysis of local needs, but on the government department and run by a state- ‘rehabilitation’ (that is, rescue) of a failed appointed management company. Tensions homeland-era agricultural project, a drain have emerged between local institutions down which vast sums of public money over control of the project, especially the have already disappeared. The project has allocation of jobs, and over the land on been initiated not by local actors, but by a which the project is located. The former central government department, which Lusikisiki council was reported to have oversees every aspect of the project down been excluded from the initial planning of to the appointment of management and of the project. Interviews with management at the board of trustees. Genuine local Lambasi suggested that a trust was to be institutions, such as the traditional autho- set up in order to distribute any profits rities and elected local government, have

31 Land reform and sustainable livelihoods in South Africa’s Eastern Cape province at best a token involvement. The economic massive state subsidies – is deeply discre- model used – centralised production, using dited, both in South Africa and internatio- a mix of capital-intensive methods and nally, and is unlikely to generate any of the low-skilled local labour, under an amor- promised benefits, in terms of employment, phous management structure and based on profitability or long-term sustainability.

32 Chapter 7: Tenure reform

Unlike restitution and redistribution, tenure reform has yet to emerge as a significant component of the South African land reform programme, particularly in the communal areas of the former homelands. Where tenure reform has taken place, it has largely focused on securing the rights of occupiers of state-owned farms on the margins of the former homelands, resettling farm residents to townships (effectively housing rather than land reform), or ‘upgrading’ tenure in informal peri-urban settlements. Tenure reform has yet to grapple effectively with the highly contentious issue of control of communal land.

n many ways, reform of communal issued, while record keeping systems in tenure remains a latent, issue, but has magistrates’ and tribal authority offices the potential to be a highly conten- have generally broken down. This has tious one and a powerful element in created a legal and administrative vacuum Irural development policy. As yet, however, that has allowed unscrupulous individuals it has yet to emerge as either. This can in to extend their landholdings at the expense large part be attributed to the ability of of others and unscrupulous leaders to powerful interest groups, particularly the exploit communal land for personal gain. Congress of Traditional Leaders of South Uncertainty around the control and owner- Africa (Contralesa) and its supporters in ship of land also presents a major barrier to government, to keep it off the political efforts to bring development to the com- agenda, or at least to minimise its impact. munal area. Kepe (2001:76) argues that The impasse around reform of communal disputes around land were a primary factor tenure in the Eastern Cape, therefore, is a behind the collapse of the Wild Coast SDI product of the repeated failure to develop during the period 1996–1999. Indeed, and implement appropriate policies at the disputes over present and future land national level, but there is little doubt that tenure have featured in virtually all of the traditional leaders from the province have Transkei land reform initiatives mentioned been among the principal actors in this here, including Dwesa-Cwebe, Magwa, drama. Tenure reform aimed at occupiers Lambasi and Mkambati. of commercial farms is, however, proceed- Much of land reform policy can be seen ing in those parts of the Eastern Cape as addressing the injustices of the past by outside of the former homelands, but this returning land from the historically privi- area of policy is not covered in this report. leged to the historically oppressed. This The need for some sort of reform of the enjoys broad-based political support, at system of land rights and land administra- least at the rhetorical level, and its occa- tion in the communal areas is abundantly sional opponents are generally seen as clear. Permission-to-occupy certificates defending narrow self-interest. Reform of (PTOs), which constitute many house- the system of communal tenure in the holds’ only proof of land rights, are now of former homelands, however, while also little value, and no new ones can legally be addressing the historical legacy of inferior

33 Land reform and sustainable livelihoods in South Africa’s Eastern Cape province rights for black people, does not fit neatly draft tenure reform Bill for the communal into the pattern of historical redress. areas, but subsequent attempts in 2001– Rather, it touches upon the matrix of rights 2002 did lead to the gazetting of the draft within African communities and is seen by Communal Land Rights Bill on 14 August many traditional leaders as an attack on 2002. The first attempt to produce such a their powers and privileges. In an area Bill appear to have failed through a combi- such as Transkei, these powers and privi- nation of concerted opposition from leges centre around the control of land. traditional leaders and pre-election caution The enduring power of traditional on the part of the ANC. The recently leaders can be understood as the interplay published draft Bill, which, at the time of of two key forces – the survival of ele- writing had yet to receive widespread ments, albeit greatly modified, of tradi- public reaction, would appear to represent tional African social and economic struc- a diminution of the role of traditional tures, and repeated interventions by the leaders, but whether this eventually trans- colonial and apartheid state to bolster the lates into law, and into subsequent prac- powers of chiefs and tribal authorities. This tice, remains to be seen. has left the traditional leaders (chiefs, At the outset of this research project, headmen and their councillors) as the PDLA identified land administration in dominant political force within many rural communal areas as one of the biggest communities, and in a strong position to challenges facing land reform in the articulate and promote their interests province, and officials expressed frustra- throughout the transition to democracy. tion at the lack of clear national policy on The post-apartheid state – whether for this matter. Among the specific problems principled or pragmatic reasons – has mentioned by PDLA were unofficial shown itself to be accommodating of the (‘illegal’) land demarcations in communal demands of traditional leaders and, despite areas by tribal authorities and other civic the introduction of elected local govern- bodies, unresolved boundary disputes ment, has done little to undo the structures between chiefs, which sometimes led to of ‘indirect rule’ bequeathed by the previ- violent rivalries between communities, and ous regime. the failure to resolve land tenure issues Proponents of tenure reform for com- before launching the Wild Coast SDI. munal areas are an amorphous group with On land administration, PDLA informed little clear structure or political weight. us at the outset that few policies were in Indeed, the case for tenure reform, or the place and there was minimal implementa- direction such reform should take, has tion or enforcement of regulations on land, rarely been articulated from within the forestry and wildlife in the communal communal areas. Nonetheless, opposition areas. In the absence of clear policy on the to specific traditional leaders (but not future of communal land, SDI projects and necessarily to the overall system of tradi- other development schemes in the commu- tional leadership or communal tenure) nal areas are being implemented on the from within rural communities is widely basis of 30-year leases, signed by the reported (Ntsebeza 1999; Claasens 2001). Department of Land Affairs in terms of the Debates around tenure reform in the State Land Disposal Act, following consul- communal areas have therefore been tation with the rights holders (as stipulated largely of a technical nature, with aca- by the Interim Protection of Informal Land demic researchers, government officials Rights Act). Officials of PDLA indicated and others proposing a variety of solutions that they were eager to contribute to the ranging from full individualisation to reform of national policy on communal revamped systems of communal tenure land, but at the time of interview (March based on local democracy. Abortive at- 2001), no such process existed. Tralso, the tempts were made in 1998 to prepare a leading land sector NGO in the former

34 Chapter 7: Tenure reform

Transkei, similarly argued that land tenure continues to be allocated to newly-formed and administration in the former home- households. The absence of reform, how- lands is in ‘a chaotic state’, particularly in ever, has major implications for the man- the Transkei, and has not been adequately ner in which decisions around land are addressed by government policy. The made within communities and for develop- recent opening of a district office of DLA ment initiatives of all kinds, whether in Umtata was seen by both PDLA and initiated by external agencies (the state or Tralso as a positive step towards dealing private investors) or by local people them- with some of these issues. selves. The true costs of delayed or stalled Tenure reform is not widely perceived tenure reform, therefore, is impossible to as the most important land issue in the know, but must be reckoned, not in terms Eastern Cape, and most rural dwellers and of evictions or feelings of insecurity, but in tribal authorities continue to muddle terms of the investment that never material- through on the basis of unwritten rights ised, the development that never hap- and community-level decision making that pened, the community project that never falls outside of any explicit government got off the ground. policy framework. This is largely because Tenure reform does, however, feature traditional land rights are not particularly prominently in the integrated approach to vulnerable in areas like Transkei – evic- land reform being pioneered in the tions are virtually unknown and land Amatole District, as discussed below.

35 Land reform and sustainable livelihoods in South Africa’s Eastern Cape province Chapter 8: Local government-led land reform

Since the launch of the South African land reform programme in the mid- 1990s, there has been persistent criticism around the lack of integration between different aspects of the programme, and the lack of synergies between land reform and other government programmes, particularly those falling under the control of local government.

ince 1995, DLA in the Eastern ‘white’ South Africa and the former Ciskei, Cape has attempted to work was under the jurisdiction of the Amatole closely with local government, District Council (a secondary council in especially in those areas where terms of South Africa’s two-tier system of DLAS itself has been most active – the areas rural local government). In December around East London, Port Elizabeth and 2000, as part of local government reor- Queenstown. These areas, including large ganisation, this area was extended and the portions of former ‘white’ South Africa, council renamed the Amatole District have a strong tradition of local govern- Municipality. This council, with its head- ment, a tradition that has contributed much quarters in East London, has formed a to the effectiveness of these now-trans- close working relationship with PDLA to formed institutions in the post-1994 demo- integrate land reform into its development cratic era. These areas also enjoy a sound activities. While similar forms of co- revenue base, in the form of affluent operation are beginning to emerge in other communities, businesses and industries, parts of the country, this relationship is and have been able to attract a high calibre certainly the most advanced in terms of its of staff. In the former homeland areas, range of activities, the extent of detailed particularly the Transkei, there is no tradi- planning and the progress with implemen- tion of elected local government. Up to tation. This is taking land reform in a new 1994, local services in these areas, in so direction and creating a valuable model for far as they were provided at all, were the rest of the country. under the control of highly inefficient While many factors undoubtedly con- government departments and unaccoun- tribute to this successful co-operation, one table tribal authorities. Since 1995, local that stands out is the close personal net- government, at both the municipality and works that link PDLA, ADM and BRC, the the district level, has been slowly created leading land sector NGO in the province, from scratch, and only since December all based in East London. Both the Munici- 2000 has it been extended to all areas of pal Manager of ADM (up to mid-2002) the former homelands. Simply creating the and the Provincial Director of DLA, structures of local government has proved among other key players, are former to be an enormous task, and the emerging employees of BRC. Moreover, BRC, institutions suffer from severe shortages of unlike many other NGOs in the land financial and human resources. sector, has put great emphasis on maintai- Up to 2000, the area surrounding East ning a close working relationship with London, incorporating parts of the form various spheres of government, both in

36 Chapter 8: Local government-led land reform

terms of lobbying on behalf of its clients cial Department of Agriculture, the provin- and carrying out work under contract to cial Department of Housing and Local government bodies. While this dual role Government, farmers’ unions and BRC. undoubtedly imposes strains in both areas The purpose of the LRSP is to provide a of work, BRC has shown itself adept in comprehensive plan for the future devel- managing these tensions while at the same opment of land reform and settlement in time influencing the direction of land the central sub-region. The plan will also reform in the province (see Nauta 2001). give effect to the proposals outlined in the Like most other local government ADM’s Integrated Development Plan by structures in the country, Amatole District providing greater detail regarding the Municipality (then Amatole District Coun- following broad goals: cil) completed its integrated development · planning new settlements to meet the plan (IDP) in 1998–1999, a statutory needs of landless and informal settle- planning document intended to provide a ments blueprint for development within its area · densification of existing settlements of jurisdiction over a five-year period. (additional site requirements) Unlike most other councils, however, the · upgrading of existing rural settlements ADC IDP placed considerable emphasis on (planning and surveying) land needs and the potential for land · upgrading of tenure (registration and reform, something that was implied in the conveyancing) IDP process but was widely ignored in · housing programme (services and top other areas. The attention given to land structures). issues in Amatola can be attributed to a Three key components to the LRSP, and range of factors, including a sympathetic, the activities related to each, are as follows committed and well-informed council that (ADC 2000b): was already attuned to the land issues in its · Land tenure – granting secure area, pressure from NGOs such as BRC, tenure (preferably freehold title) to both at council and community level, and households in residential areas well-organised and articulate communities under local council control; working that were able to take full advantage of the with DLA and Department of Agri- public consultations that formed part of the culture to resolve and strengthen IDP process. land rights on residential and agri- Arising out of the public consultation cultural land in communal areas; process, ADC undertook the formulation provision of agricultural land of a ‘Land Reform and Settlement Plan’ through municipal allotments or (LRSP) for the Central Sub-Region of the private sale; and assumption of council’s area of jurisdiction, which com- responsibility for communal grazing prises the six magisterial districts of East lands (which should remain in state London, King William’s Town, , ownership). Stutterheim, Cathcart and Keiskammahoek. · Land administration – engagement According to the LRSP document, ‘This with DLA and Department of Agri- was done on the basis that the communi- culture to reform the system of land ties resident in this spatially defined area administration in communal areas; had identified the resolution of “land create clear links between land issues” and settlement needs as their top administration processes and local priority’ (ADC 2000b). The LRSP was planning frameworks; develop local prepared by a multi-disciplinary team of authority capacity to administer consultants, under the supervision of a commonage land; strengthen land steering committee comprised of repre- administration capacity with the DC sentatives of ADC, the local councils [District Council] and local councils; within the sub-region, PDLA, the provin- facilitate a process of commonage

37 Land reform and sustainable livelihoods in South Africa’s Eastern Cape province

management planning and establish additional financial resources to the commonage management commit- council to employ programme support tees as part of an integrated local personnel who will be fully dedicated to planning process; establish com- the programme. monage management planning as While it is too early to judge the success part of all future land reform of this innovative approach to land reform, projects; and prepare to delegate the progress to date is certainly impressive authority for communal areas once and is already beginning to influence DLA local planning and commonage and local government structures in other management is in place. parts of the country. PDLA has a goal of · Spatial approaches to settlement transferring 50% of its budget to local development – the ADC aims to government for implementation of land achieve functional separation be- reform projects and says that it could also tween predominantly urban or peri- envisage transferring staff to local government structures to assist with urban areas and predominantly implementation. agricultural areas; identification of The strengths of the integrated three settlement models, viz. urban approach to land reform as pioneered in settlement, mixed land-use settle- the Amatole area can be summarised as: ment, encompassing residential and · a clear focus on, and commitment to, productive land-use on larger plots, land issues by the district council and small, medium and large com- (‘ownership’ of the policy area) mercial farming, where the principal · a thorough process of public consultation land use is farming rather than · well-organised and articulate settlement. communities Funding of R33 million over two years has · effective NGOs, with a clear vision of already been provided by DLA, and the land reform, that can intervene with programme is expected to benefit 12 000 various structures and at various points households. Over R14 million was spent in in the process to maintain momentum the first financial year. Most of this was for · availability of a range of technical skills housing development, but nine farms were both within the District Council and on acquired in the Komga, seven in Kubusie contract from the private sector and four in Mgwala, with more to be · active participation by all key purchased in Needs Camp and . stakeholders: government (local, In February 2002, the ADM reported that it provincial and national), communities, was struggling to meet the ambitious NGOs, private sector and farmers’ targets contained in the plan, and indicated unions (both as landowners and as it would approach DLA to provide potential beneficiaries).

38 Chapter 9: Land reform and sustainable livelihoods

The link between land reform and sustainable rural livelihoods has not been adequately addressed at a policy level to date, although there are signs that it is being taken increasingly seriously by some actors. Early examples of ‘chequebook restitution’, and ill-founded redistribution projects such as Magwa, clearly lacked any concept of sustainable livelihoods.

hese were examples of land requirements, which operate at three levels reform (if indeed, they can be – micro, meso and macro (see Box 4). This included under this definition), analysis departs slightly from Goldman’s for its own sake, with little or no framework in that local and district munici- Teffort to link it to wider processes of palities are treated as a single (combined) development or to any long-term strategy. form of local government, situated at the More recent developments, such as the lower meso level, and the international Chatha restitution settlement, the creation dimension is not discussed. of a Settlement Support and Development For public policies to promote sustain- Planning division within the RLCC, and able livelihoods successfully, Goldman the close collaboration between PDLA and argues, all of these levels must be present Amatole District Municipality around the and functioning, with effectively linkages Land Reform and Settlement Plan, suggest upwards and downwards between the that concepts of integrated development various levels. and sustainability are now being taken seriously by key actors and are becoming Participation of the poor gradually institutionalised. There can be little doubt, on the basis of Another critical factor in the ‘matura- the examples presented here, that the tion’ of land reform policy in the Eastern active and informed participation of the Cape is the increasing capacity of NGOs rural poor in their own development is a and private sector companies in the land key factor in land reform in the Eastern sector. This has allowed for a greater range Cape. Well-organised communities, capa- of partnerships between government and non-government agencies which, while ble of articulating their demands, contri- criticised from some quarters as ‘creeping buting what resources they have at their privatisation’ of public services, has un- disposal and able to hold government and doubtedly added much-needed capacity to other external agencies to account have embattled state agencies. been critical to the success of projects such This section applies a modified version as Gasela and the development of the Land of Goldman’s (2001) framework of gov- Reform and Settlement Plan for the Central ernance requirements for sustainable Sub-District of Amatole District Municipa- livelihoods to land reform policy in the lity. Equally important, however, have been Eastern Cape. This framework can be the preparedness of government agencies summarised in the form of six governance to listen to, and work with, communities,

39 Land reform and sustainable livelihoods in South Africa’s Eastern Cape province

Box 4: Six governance requirements for sustainable livelihoods Requirement Level · poor people active and involved in managing their micro own development · active and dispersed network of local service micro providers (community-based, private sector and government) · local government services managed and co-ordinated lower meso effectively and responsively, and institutions held accountable · at level above primary local government (for exam- upper meso ple, district and province), capacity to provide support and supervision and strategic planning · centre providing holistic and strategic direction macro around poverty, redistribution, and oversight of development · international level strengthening capacity in-country macro to address poverty and the presence of NGOs that have Lambasi Farm, where key decisions are developed multi-faceted relationships with made within a central government depart- communities over many years and can ment and hand-picked local ‘representa- provide a range of social and technical tives’ are co-opted on to powerless ‘man- services in an manner that builds the agement’ structures. capacity of communities to manage their Clearly there are limits to what the state, own affairs. or other ‘external’ agencies, can do to In much of the Eastern Cape, however, build capacity within rural areas in order especially in the former Transkei, many for people to participate more effectively communities have not achieved the same in their own development. Nonetheless, it degree of organisation and cohesion, and is essential that agencies working in deep land reform initiatives have suffered rural areas such as Transkei do everything greatly as a result. Lack of clarity around possible to support existing community- definition of ‘communities’, and disputes level initiatives and to encourage the between rival groups, have greatly ham- formation of genuinely representative local pered the settlement of land claims, and structures. This is likely to impose further other development initiatives, in areas such delays in the implementation of national as Dwesa-Cwebe and Mkambati (Fay & and provincial policies in some rural areas, Palmer 2000; Kepe 2001). Highly centra- but such delay is unavoidable if sustain- lised decision-making processes that serve able development is to take place. There is to exclude rural people look set to impact also an enormous challenge to external negatively on the livelihoods benefits agencies to listen to the demands of rural arising from forestry privatisation. Rivalry people, particularly of the very poor, and between elected local government and to resist the temptation to work only with tribal authorities, and the lack of effective local governance structures. Both elected community-based structures, has created councils and unelected traditional leaders space for highly top-down projects such as are vying to assert their power within rural

40 Chapter 9: Land reform and sustainable livelihoods

areas and pursuing their own narrow not usually deal directly with rural commu- institutional agendas, and are often willing nities in need of assistance, or intervene in to be co-opted to programmes imposed emergency cases, but rather provide from provincial or national headquarters services under contract to PLDA or RLCC. that offer few benefits to the rural poor. These range from investigation of tenure rights or restitution claims to preparation of Local service providers business plans for redistribution projects Immediately preceding and following and technical advice on agricultural mat- South Africa’s first democratic elections of ters. Private companies are set to play a 1994, pressure for land reform was chan- prominent role in the implementation of nelled largely through a handful of highly- the Land Reform and Settlement Plan in politicised NGOs. With the creation of state the Central Sub-Region of Amatole District institutions with similar goals, the land Municipality. NGOs have lost much of their unique In the rest of the province, however, and especially in the former Transkei, the standing (along with many of their person- picture is very different. In many areas, nel) to the state sector, but have gained an neither NGOs or private companies have a environment that is largely favourable to presence, leaving communities and local modest reform. These developments have government structures alike with little or forced fundamental changes in the way no access to key skills and services. At the NGOs operate, and not all have succeeded beginning of 2001 Tralso, the leading land in adjusting to the new context. In the sector NGO operating in Transkei, was Eastern Cape over the last two years, one reduced to just four staff, two of them land NGO, the Eastern Cape Land Com- volunteers, and could offer little in the way mittee, based in Port Elizabeth, has closed of services to rural communities. Since down, and Tralso, based in Umtata, has then, however, it has secured new funding, gone through a major funding and person- including a contract from the RLCC to nel crisis. validate land claims, but can still hope to The NGO success story in the province serve only a small fraction of communities is undoubtedly BRC, which has, in recent in its area of operation. Private sector years, been able to attract substantial donor companies in the land sector are virtually funding, add a range of new services to its non-existent in Transkei and, is so far as portfolio and build close working relation- they operate at all, generally do so from ships with various state institutions, which bases in East London or Durban, which in turn provide a further source of income. creates serious problems of communica- Within the Amatole District, BRC has been tions and effectiveness. in a position to offer support services to a The absence of an active and dispersed wide range of clients, ranging from de- network of local service providers in areas tailed planning and facilitation in an areas such as Transkei is undoubtedly a major such as Gasela to one-off contacts with barrier to implementation of land reform, farm residents and others inquiring about and creating such a network will not be a their land rights or how to access a grant. quick or straightforward process. State An active land reform programme in institutions can favour local service pro- the East London, Queenstown, viders where they exist, or exert pressure Grahamstown and Port Elizabeth areas has on others to open offices in remote areas, encouraged the emergence of a variety of but given that many such providers are private sector companies, many of them one- or two-person consultancies, this may small consultancies, that are playing an not be feasible. Foreign donors and state increasingly important role in land matters. agencies alike cannot afford to be compla- Unlike the NGOs, private companies do cent when land NGOs run into financial or

41 Land reform and sustainable livelihoods in South Africa’s Eastern Cape province management problems. More creative institutions. What is most notable about ways should be found to encourage the land reform projects in areas such as creation of dynamic and accountable land Pondoland is that they have proceeded sector NGOs in areas that are currently outside of any clear local development neglected if land reform and development plan and have not been integrated with are to reach the areas of greatest need. other activities at a local level. Where local government is weak – in terms of skills, Local government experience and financial resources – land Enormous disparities exist between local reform tends not to be seen as a priority, government structures in the Eastern Cape. and local government structures tend to be Land reform has not been a priority for drawn into projects more as observers, or most structures up to now, and has not to provide a token local presence, rather even been considered by many. For the than to give strategic direction. purposes of this discussion, local (primary) The creation of effective and and district (secondary) municipalities will accountable local government in areas be discussed under one heading. such as Transkei is clearly a mammoth task Well-established local government and is still in the earliest stages. Structures structures such as Amatole District such as OR Tambo District Municipality Municipality, with experienced staff, a and Ingquza Local Municipality are substantial revenue base and a range of heavily focused on provision of successful programmes, have been able of ‘traditional’ local government services, late to take on ‘non-traditional’ functions such as water, roads and electricity, and such as land reform. Indeed, in terms of have yet to address wider issues of local the Land Reform and Settlement Plan for economic development or land reform (see the Central Sub-Region, land reform, Manor 2000; Ntshona & Lahiff 2001). which hardly featured in local government They are also locked into a power struggle thinking up to recently, has become a key with traditional leaders within the activity around which a range of other communal areas, where control of land is services and programmes – including one of the key areas of dispute. Given the water, housing and agricultural enormous demands on these councils, development – are now being organised. operating as they do in some of the poorest Such an approach, which links integrated areas of the country, their very limited delivery of services by a range of state capacity, and the absence of clear national institutions with productive activities, policy on reform of communal land, it is involves a range of private-sector and perhaps not surprising that these councils NGO participants, and is driven by close steer clear of land issues. In the meantime, consultation with and participation by local however, a range of ‘external’ institutions communities, is probably the closest the continue to promote a variety of very Eastern Cape (and, indeed, South Africa), questionable land reform projects, of comes to a large-scale sustainable livelihoods programme. which Lambasi and Magwa are prime Close involvement by local examples. The evidence of this study government, in both the planning and would suggest that major interventions by implementation stages, has also been a national government departments where feature of other (relatively) successful land local institutions are weak do not lead to reform projects, including Chatha and well-designed, viable projects that promote Dwesa-Cwebe. These are in contrast to sustainable livelihoods. They do, however, projects such as Lambasi, Magwa and create opportunities for political patronage Mkambati where local government has on a grand scale. Government line been relatively uninvolved or has become departments, such as Land Affairs and bogged down in disputes with rival Public Works, may need to consider ways

42 Chapter 9: Land reform and sustainable livelihoods

to build capacity in local government, and beneficiaries, although it continues to in other local institutions, before dispose of other state land to the general proceeding with large projects in remote public outside of the land reform rural areas. programme. Notably absent from provincial Provincial government government policy is an overall Land reform policy in the Eastern Cape is development plan for the province that implemented largely by provincially-based integrates land reform with wider socio- representatives of national government economic processes. The need for an institutions, namely PDLA and RLCC. Up integrated rural development strategy has to recently, co-operation between these been identified by the provincial institutions, both part of the same national government, and in 2000 the Eastern Cape Department of Land Affairs, and other Socio-Economic Consultative Council national government departments active in (ECSECC) was commissioned to prepared the province, as well as with provincial a draft Rural Development Framework and local government structures, has not Document (ECSECC 2000). This been particularly close. Of late, however, it document highlights the urban and has been the policy of DLA to work more industrial focus of economic policy in the closely with other departments and other Eastern Cape and the lack of co-ordination spheres of government, and the Eastern between policies designed to address the Cape would appear to be relatively well needs of the rural poor: advanced in this regard. Nevertheless, the In the absence of an integrated rural involvement of provincial-level structures development strategy in the in land reform to date has been very province, efforts to coordinate limited, and the capacity of such structures programmes which impact on rural to provide support to local-level development remain fragmented and institutions is quite limited. partial. While the Provincial Growth Interviews with provincial government and Development Strategy goes departments, particularly the key some way in creating a framework departments of Agriculture and of for integrated development planning Economic Affairs (now the Department of and implementation, it is not Provincial Treasury, Economic Affairs, sufficiently rural in focus … Environment and Tourism) revealed a high Government Departments have also level of ambivalence towards land reform, been slow off the mark in especially of the ‘poverty alleviation’ internalising its logic, and are not variety, and a preference for large sufficiently co-ordinating activities commercially-oriented projects with the with other departments, other tiers of capacity to generate wage employment. government, NGOs and other The introduction of the LRAD programme, technical and financial institutions however, backed by the national Ministry (ECSECC 2000:23). of Agriculture and Land Affairs, has given It is indicative of the problems facing rural a more greater role than hitherto to development in the Eastern Cape that the provincial departments of agriculture in the draft Rural Development Framework of vetting and planning of redistribution 2000 has not, to date, been finalised or projects, and would appear to be leading to adopted as policy by the provincial greater willingness to provide services government. One donor-funded initiative, such as agricultural extension to land however, does attempt to tackle rural reform beneficiaries. In 2001 the Eastern development and promotion of sustainable Cape Department of Agriculture, for the livelihoods in an integrated manner. This is first time, agreed to make state land the Rural Livelihoods Programme, available for purchase by land reform developed as a partnership between

43 Land reform and sustainable livelihoods in South Africa’s Eastern Cape province

ESCECC and the Policy, Planning and opment. A Rural Development Framework Research Branch in the office of the document released by DLA in May 1997 Premier, with technical advice and funding was widely ignored by government and from the German technical assistance has since been replaced by an Integrated agency Deutsche Gesellschaft für Sustainable Rural Development Strategy. Technische Zusammenarbeit (GTZ). The The ISRDS, launched in 2001, focuses Rural Livelihoods Programme is currently largely on the achievement of synergies being implemented on a pilot basis between government agencies in their (beginning in 2001) in a number of routine functions and brings neither a new districts in Transkei. vision nor additional funding to the rural Successful land reform projects in the development sector. The ISRDS is conspi- Eastern Cape have tended to be those cuously silent on land reform and is un- which have received a high degree of buy- likely, in its present form, to contribute in and support from a range of local, much in the way of strategic direction to provincial and national institutions. In rural development policy. The Spatial Transkei, however, land reform projects Development Initiatives launched in have, up to recently, received little or no various parts of the country in recent years support from the provincial level and, have also conspicuously failed to address equally important, little or no support has land issues, as Kepe (2001) demonstrates been provided to the local institutions with regard to the Wild Coast SDI, leading which should be in the best position to to major policy failures. deliver services to end users. The Lambasi Since the late 1990s, as this study has project appears to be proceeding with shown in the case of the Eastern Cape, minimal involvement by the provincial aspects of land reform policy have begun Department of Agriculture, while at to be integrated with other areas of policy, Dwesa-Cwebe the Department of especially in terms of greater involvement Provincial Treasury, Economic Affairs, of local government in land reform Environment and Tourism was reported to projects. Under LRAD, provincial depart- have been delaying for over a year on its ments of agriculture are also being drawn commitment to pay rent in advance to the into policy design and support to beneficiaries, although continuing cuts in community trust in order to keep the agricultural extension services negate nature reserve under provincial much of the benefit of this involvement. government control. What remains elusive, however, is a A good start has been made in forging comprehensive rural development strategy links between the official institutions that links land reform and rural livelihoods responsible for land reform policy and to national and sectoral economic policies. other spheres of government in the Eastern Macro economic planning, in the form of Cape. What still remains is for these the government’s Growth, Employment national and provincial structures to and Redistribution programme (Gear), implement substantial programmes of tends to treat land reform as a drain on support to local-level institutions and land resources rather than as a basis for econo- reform projects. mic growth. National agricultural policy focuses overwhelmingly on large-scale Holistic and strategic direction enterprises producing for national and The early years of South African land international markets, and for the small reform policy were marked by a lack of minority of black farmers capable of integration between the different aspects of competing in such an environment. Thus, land reform (that is, restitution, redistribu- while implementation of land reform tion and tenure reform) and between land appears to be becoming more efficient, reform and wider processes of rural devel- and involving more actors at the local

44 Chapter 9: Land reform and sustainable livelihoods

level, the crucial horizontal links to other reduction, rural development and areas of national policy have yet to be redistribution (in the wider, economic, consolidated. A national policy vision that sense) in a holistic manner has yet to integrates land reform with poverty emerge.

45 Land reform and sustainable livelihoods in South Africa’s Eastern Cape province Chapter 10: Conclusion

Eight years into the transition to democracy in South Africa, land reform policy and the institutions associated with it continue to evolve and to address previously neglected areas. In the Eastern Cape, considerable progress has been made in the settlement of urban restitution claims, the redistribution of some former white-owned commercial farms and the formulation of integrated development plans for some rural areas.

oth the Department of Land at either provincial or national level. Over Affairs and the Regional Land the past two years, both the Regional Land Claims Commission have Claims Comission and the Department of shown themselves to be increas- Land Affairs in the Eastern Cape have Bingly effective actors, developing close sought to address these issues by creating working relationships with a range of close working relations with other govern- governmental and non-governmental ment agencies and more careful planning agencies and contributing to the shaping of of projects in ways that increasingly focus land reform policy at a national level. Civil on livelihoods and sustainability. society structures, too, have shown them- Complex governmental structures selves willing and able to challenge gov- present a major challenge to land reform ernment policy and demand the type of policy, in terms of policy design, inter- services that best suit their needs. institutional co-operation and accountabil- Nonetheless, major issues remain to be ity. The key institutions associated with addressed, including the needs of people land reform in the Eastern Cape are living in the ‘deep rural’ areas of the branches of a national government depart- former Transkei, and particularly the ment and, as such, are not directly ac- reform of communal tenure. countable to any institution within their The institutional framework for land area of operation. Major policy changes reform in the Eastern Cape has not been emanate largely from the centre, although particularly favourable to the promotion of provincial-level structures can at times sustainable livelihoods to date, although influence national policy. While national process are underway that seek to address government occasionally engages in this. While claiming to address livelihoods, public consultation around policy develop- alleviation of poverty and development of ment, no effective mechanism exists, either rural areas, the South African land reform through the political system or otherwise, programme has struggled to achieve this in to make land reform institutions account- practice, for various reasons. Particular able to their primary constituency, the rural programme areas, such as restitution, poor and landless, or to give this constitu- redistribution and tenure reform, have ency a meaningful voice within the policy- been developed and implemented largely making process. in isolation from each other and have been In addition to PDLA and RLCC, a range poorly integrated into broader processes of of other organisations are involved in land rural development. This lack of integration reform in the Eastern Cape and play a can in turn be related to the lack of a valuable role in shaping policy. In areas comprehensive rural development strategy such as Amatole, local government has

46 Chapter 10: Conclusion

facilitated the decentralisation of land such as land. The failure of local govern- reform to a new degree, with decision- ment to take on board land issues, and the making powers and budgets being put into inability of many rural communities to the hands of local officials accountable to give clear voice to their needs, has un- locally-elected public representatives. Such doubtedly served to insulate institutions delegation of responsibility to multi- such as PDLA and RLCC from the desper- functional local government structures has ate needs prevailing in areas such as also allowed for the integration of land Pondoland and ensured that resource reform with other key policy areas, such as allocation and the types of policies pur- water and housing, to a degree that was sued continues to favours non-homeland not possible under single-function line areas. departments and provides a realistic basis Access to land continues to be a vital for the promotion of sustainable liveli- element in the livelihood strategies of hoods. Dynamic NGOs, well-organised millions of people in the Eastern Cape. and articulate local communities and a Land reform policy has yet to impact on variety of service providers from the the lives of the vast majority of such private sector also play a vital role in the people, or on the majority of those cur- more successful land reform initiatives in rently without secure land rights. Land the province. policy, both provincially and nationally, While considerable progress has been has not to date been characterised by a made in terms of land reform implementa- strong livelihoods focus and even where tion and the development of a supportive this has been raised it is not yet clear how institutional environment in some parts of effective it will be in promoting sustainable the Eastern Cape, the same cannot be said livelihoods. A degree of delegation of of the ‘deep rural’ areas of the former powers to provincially-based structures homelands. Areas like Pondoland are not such as PDLA and the RLCC has occurred, only remote from, and poorly served by, but within the context of a national PDLA and the RLCC, but are also weak in government department that remains other key regards. Many rural communities unaccountable to governmental or civil are loosely defined and poorly organised. structures within the Eastern Cape. Decen- Loyalties are commonly divided between tralisation of responsibilities to provincial two types of local government – elected and local government has begun, to a very local authorities and traditional leaders – limited extent, but has not yet impacted on both of which struggle to provide effective most of the Transkei. Major work remains leadership to rural communities and to to be done in order to integrate sustainable access key reform programmes. Elected livelihoods approaches into South African local authorities, in particular, have been land reform, and rural development policy preoccupied with the establishment of new more generally, and to create a decentral- institutions and coming to grips with core ised institutional framework that is local government functions, and have not accountable to local people and responsive so far managed to address ‘new’ issues to their needs.

47 Land reform and sustainable livelihoods in South Africa’s Eastern Cape province References

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