South Africa’s “Right Track” Land Reform?
RECAP’s efforts to resuscitate land reform
projects in distress
Ward Anseeuw
UP / CIRAD
52nd AEASA conference
« 20 years on since Democracy – Quo vadis? » 28/9 – 1/10/2014
RECAP
1) Recapitalisation 5 phases/years
100% funding for infrastructure and operational costs to 20% funding for development needs.
2) Development
Human and physical * Mentorship
Training, marketing, finance, networking and other farm related skills Mentors appointed / Costs covered by enterprise once generating profit (12 months/production cycle)
* Strategic Partnerships
SP – companies/individuals investing in the land reform project Risk sharing / Profit-sharing arrangement
SP = contract farming, co-management and share equity schemes (2010, planned 1807 farms, 640 implemented, 264 SP, 117 mentorship, 38 SP and 50 mentors)
RECAP assessment
Province RADP farms per province Number of projects selected
initially
Number of projects visited
Gauteng 51 10 10 Eastern Cape 71 9 9 Limpopo 72 13 13 Free State 70 25 22 KwaZulu-Natal 118 23 24 North West 79 20 20 Total 461 100 98 Realised in 2013
Promoting a commercial farm model
Eastern Cape
Free State Gauteng KZN Limpopo North West Total
Average 1742,3 901,8 200,4 394,2 249,2 823,9 672,2 Max 12215,0 2310,0 623,0 2296,0 937,0 3900,0 12215,0 Min 24,0 19,0 2,7 40,0 5,1 12,4 2,7 St deviation 4247,7 621,0 230,7 514,4 303,0 1107,4 1390,8
RECAP - focus on viable economic entities
- activities mainly oriented for market production
Average size: 672 ha
Beneficiaries: 670 (-7 per project)
42% are time and 58% are part-time; with 71% of the projects having at least one full-time beneficiary.
Increased production and
socio-economic impacts
• Many of the beneficiaries on their way to becoming commercial farmers – 50% • Operations on-going on 69 of the 98 projects
• 29 out of the 98 projects (29.6%) still have a turnover of zero • Turnover, on average, R1.45 million
Eastern
Cape Free State Gauteng KZN Limpopo
North-West Total Average total 531 1 192 188 1 380 2 409 2 221 1 446 Average producing farmers 796 2 184 268 1 840 3 915 2 468 2 054 Standard deviation 1 189 3 639 310 1 619 8 363 6 732 4 653 Minimum 0 0 0 0 0 0 0 Maximum 3 615 17 100 918 5 180 30 240 28 788 30 240 Sum 4 778 26 213 1 881 33 113 31 324 44 436 141 745
Increased production and
socio-economic impacts
0 2000 4000 6000 8000 10000 12000At acquisition Before RECAP After RECAP At present
Livetsock
Increased production and
socio-economic impacts
0 2000 4000 6000 8000 10000 12000At acquisition Before RECAP After RECAP At present
Livetsock
Area under crop production
Accumulation
Stagnation
Increased production and
socio-economic impacts
Eastern Cape Free State Gauten g KZN Limpop o North-West Total Since RECAP, has market access beeneasier?
% of respondents 42,86 42,86 0,00 70,83 58,33 15,38 46,91 Since RECAP, did your economic
situation change?
% of respondents 85,71 52,38 66,67 81,82 75,00 76,92 71,79 Since RECAP, did your social status
change?
% of respondents 85,71 55,00 66,67 77,27 66,67 76,92 70,13 Number since the implementation of
RECAP, has your diet change?
% of respondents 85,71 42,86 66,67 47,83 72,73 76,92 58,97
Questionable empowerment
Eastern
Cape Free State Gauteng KZN Limpopo
North-West Total Funding 100 0 100 80 100 - 76,00 Providing technical expertise 100 30,77 100 42 50 75 66,24 Farm management 100 50 100 75 50 50 70,83 Provide output markets 100 66,67 100 75 100 - 88,33 Providing input markets - 0 100 88 - - 62,50 Empowerment 0 16,67 - 57 - 28,57 25,59 Overall satisfaction 80,00 27,35 100,00 69,00 75,00 51,19 67,15
A model that lacks broader development
and employment implications
N full-time employment N part-time employment N total Average full-time employment per project Average part-time employment per project Average total employment per project Before RADP 565 454 1019 5,77 4,63 10,40 After RADP 676 883 1559 6,90 9,01 15,91 Difference N 111 429 540 +1,13 +4,38 +4,51 Difference % +19,65 +94,49 +52,99 +19,58 +94,60 +52,98
• Employment creation - positive but low • 540 jobs created through RECAP • 111 full-time and 429 part-time
• Not – or little - created jobs or leveraged development dynamics in the beneficiary communities.
The huge cost of the RECAP model
Eastern Cape
Free
State Gauteng KZN Limpopo
North-West Total Average per receiving project
in Province R2 133 333 R7 338 182 R3 750 000 R2 037 471 R1 976 143 R3 025 000 R3 556 563 Max R3 200 000 R33 200 000 R10 000 000 R7 500 000 R3 600 000 R7 500 000 R33 200 000 Sum/Total R6 400 000 R80 720 000 R15 000 000 R30 562 059 R13 833 000 R24 200 000 R170 715 059
Table: Funds received in the framework of RADP per province
