Research Report Land redistribution and poverty reduction in South Africa: The livelihood impacts of smallholder agriculture under land reform Edward Lahiff, Themba Maluleke, Tshililo Manenzhe and Marc Wegerif School of Government, UWC 1 Research Report Land redistribution and poverty reduction in South Africa: The livelihood impacts of smallholder agriculture under land reform Edward Lahiff, Themba Maluleke, Tshililo Manenzhe and Marc Wegerif School of Government, UWC Land redistribution and poverty reduction in South Africa: The livelihood impacts of smallholder agriculture under land reform Land redistribution and poverty reduction in South Africa: The livelihood impacts of smallholder agriculture under land reform Published by the Programme for Land and Agrarian Studies, School of Government, University of the Western Cape, Private Bag X17, Bellville 7535, Cape Town, South Africa. Tel: +27 21 959 3733. Fax: +27 21 959 3732. E-mail: [email protected] Website: www.plaas.org.za Programme for Land and Agrarian Studies research report no. 36 ISBN 978-0-620-41277-3 May 2008 All rights reserved. No part of this publication may be reproduced or transmitted, in any form or by any means, without prior permission from the publisher or the authors. Copy editor: Laurie Rose-Innes Cover photograph: Bill Derman. Photograph shows Themba Maluleke of PLAAS in the foreground (red baseball hat) and Ndukwane Rex Mdhluli in the background (cowboy hat), who is a farmer on the farm Uitschot. Cartographer: John Hall Layout: Designs4development, [email protected] Typeset in Frutiger Printing: RNK Graphics ii Contents List of tables and maps v Acronyms and abbreviations vi Acknowledgements vii Chapter 1: Introduction 1 Research and design methods 2 Policy engagement and dissemination 4 Structure of the report 5 Chapter 2: Overview of land and land reform in Limpopo province 6 Historical background 6 Socio-economic conditions 6 Land and agriculture in Limpopo 8 Land reform in Limpopo 9 Post-settlement support 12 Chapter 3: Dikgolo case study 13 Background 13 The Dikgolo Trust and its members 13 Land description 15 Land use 16 Support services 21 Benefits and livelihood impacts 22 Analysis and recommendations 23 Chapter 4: Monyamane case study 27 Background 27 The Monyamane CPA and its members 28 Land description 30 Land use 31 Support services 32 Benefits and livelihood impacts 33 Analysis and recommendations 34 Chapter 5: Mahlahluvani case study 37 Background 37 The Mahlahluvani Farmers’ Group 40 Land description 41 Land use 42 Support services 43 Benefits and livelihood impacts 43 Analysis and recommendations 45 Chapter 6: Shimange case study 48 Background 48 The Shimange CPA 49 Land description 51 Land redistribution and poverty reduction in South Africa: The livelihood impacts of smallholder agriculture under land reform Land use 53 Support services 56 Benefits and livelihood impacts 57 Analysis and recommendations 58 Chapter 7: Key findings and policy recommendations 61 Land use and settlement 61 Livelihood impacts 63 Communal property institutions 64 Project design and support 66 Implications for land reform and agricultural policy 68 Conclusion 69 Appendix 1: Organisations contacted during the research 71 Appendix 2: ‘A day on the farm’, by Marc Wegerif 72 References 76 List of tables and maps Tables Table 1: Main reasons for practicing agriculture, Vhembe district, 2004 8 Table 2: Gross farming income per type (R’1 000s) 9 Table 3: Household cash income from all activities, excluding the land reform projects/initiatives 14 Table 4: Property ownership according to the Deeds Registry 16 Table 5: Infrastructure requirement according to the Dikgolo Business Plan 17 Table 6: Maize harvested per farmer from individual plots, Dikgolo 18 Table 7: Dikgolo cattle diary, July 2006 to May 2007 19 Table 8: Income (in cash and kind) distributed to Monyamane project members, 2005/06 33 Table 9: Main problems experienced by members at Monyamane 33 Table 10: Formal ownership of Welgevonden portions 41 Table 11: Sales of vegetables at Shimange, 2005/06 55 Maps Map 1: Limpopo province, showing locations of the four case studies 3 Map 2: Limpopo province showing district municipalities 7 Map 3: Dikgolo 15 Map 4: Monyamane 27 Map 5: Mahlahluvani 37 Map 6: Shimange 48 v Land redistribution and poverty reduction in South Africa: The livelihood impacts of smallholder agriculture under land reform Acronyms and abbreviations ARDC Agriculture and Rural Development Corporation CASP Comprehensive Agricultural Support Programme CPA communal property association CPI communal property institution CRLR Commission on Restitution of Land Rights DLA Department of Land Affairs DoA Department of Agriculture DoL Department of Labour DWAF Department of Water Affairs and Forestry GGP gross geographic product IDP Integrated Development Plan LED Local Economic Development LRAD Land Redistribution for Agricultural Development LSU large stock unit MEC Member of the Executive Council MFA Monyamane Farmers Association NDA National Development Agency PSU post-settlement unit RDG Restitution Discretionary Grant RLCC Regional Land Claims Commissioner SADT South African Development Trust SLAG Settlement and Land Acquisition Grant SPG Settlement Planning Grant vi Acknowledgements This report presents the findings of over two years’ research conducted in Limpopo province in a partnership between the Programme for Land and Agrarian Studies at the University of the Western Cape and the Nkuzi Development Association. The authors wish to thank everyone who contributed their time and resources to this work and who assisted us in so many ways. In particular, we extend our appreciation and thanks to the farmers of Dikgolo, Mahlahluvani, Monyamane and Shimange for facilitating this research and for sharing so much of their knowledge with us. We gratefully acknowledge the Ford Foundation, Southern Africa, as the funder of this research. vii Chapter 1: Introduction Since its inception in 1994, South Africa’s land attempted that allow for an understanding of reform programme has aimed to achieve multi- what happens once households or communities ple objectives, including redressing the historical acquire land, or what the impacts on livelihoods, racial imbalance in landholding, alleviating pov- productivity or poverty are over time. Formal erty and developing the rural economy. A range monitoring and evaluation of the land reform of policies has been developed to deal with res- programme has not been sufficient to allow for titution of historical land rights, redistribution any firm conclusions to be drawn on these criti- of agricultural land and protection of the rights cal issues. of people living in communal areas and on com- The Programme for Land and Agrarian Stud- mercial farms. Delivery, however, has been pain- ies (PLAAS) has been involved in research into fully slow, with all key policy areas falling far be- land reform and related issues in South Africa hind their stated targets (DLA 1997; Hall 2004). since 1996. Much of its work has focused on the Developments within the wider southern African policy dimension, in terms of both evaluations region have demonstrated the enduring political of particular programmes and input into policy importance of land reform and the potential for debates. From 2002 to 2003, PLAAS conducted inequalities in landholding to destabilise nation- the study Evaluating land and agrarian reform al economies (Sachikonye 2002; Lahiff & Cousins in South Africa (see Hall, Jacobs & Lahiff 2003), 2001). These developments, coupled with the which provided the first comprehensive review slow pace of delivery, have led to an ongoing of land reform policy and implementation, and questioning of the aims of land reform in South highlighted various gaps and weaknesses in the Africa and the methods best suited to achieving current approach. It identified a need for new them. The market-based approach to land re- thinking around crucial issues such as beneficiary form, in particular, has been criticised by schol- selection, land acquisition, project design and ars as contributing to the slow pace of reform, post-settlement support. the high costs of the programme, inappropriate This research project aimed to build on previous targeting of beneficiaries and inadequate post- work and provide an in-depth assessment of spe- settlement support (Lahiff, Borras & Kay 2007). cific land reform interventions and their impact A critical issue for land reform is the alleviation on the livelihoods of beneficiaries. Analysis of of poverty, which is heavily concentrated in the case studies and interaction with other related rural areas. Alternative economic opportuni- activities undertaken by PLAAS and its part- ties, whether in terms of formal employment ners would link in-depth studies of land reform or involvement in the informal sector, remain projects with policy analysis and development.1 extremely limited. There is convincing evidence Thus, the findings of this and other studies that poverty, in both relative and absolute terms, would provide the basis for a thoroughgoing as- is growing, with the majority of all rural dwellers sessment of existing policies and lead to recom- living below the poverty line (May 2000; HSRC mendations in key areas of land reform policy, 2004; Bhorat & Kanbur 2006). based on continuing analysis and debate and grounded in empirical evidence from the field. Evidence of the impact of land reform on pov- erty is extremely limited, however, and is ham- The project ran from May 2005 to July 2007, with pered by a lack of reliable empirical data on all the main fieldwork being conducted between aspects of the programme (Lahiff 2007). While a July 2005 and April 2007. The study was limited certain amount is know about the performance to the Limpopo province and, within it, to the of the land reform programme at the aggregate district municipalities of Capricorn and Vhembe. level – such as money spent, hectares transferred Limpopo was selected due to its high concentra- and number of beneficiaries – little empirical in- tion of rural poverty, the large number of land formation is available at the project or house- reform projects underway in the province, and hold level.