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August 26, 2007

South Africa's few land reform successes raise questions of viability

South Africa's land reform process has been fraught with obstacles. But there are occasional success stories.

Last week gaming resort operator Conservation Corporation Africa (CC Africa) signed a 72-year lease agreement, ending two years of negotiations with two communities in rural KwaZulu-Natal. CC Africa returned 9,500ha of land, on which its Phinda Private Game Reserve is situated, to the Makhasa and Mnqobokazi communities.

The agreement holds benefits for both the company and the restored owners. It includes a R3.3 million ($455,000) rental a year and an initial R18 million ($2.5 million) payment to both communities. The communities plan to use this income to establish various social upliftment projects.

The deal followed a similar move by Tsb Sugar Holdings, which has established joint ventures with the Hhoyi and Siboshwa communities in Mpumalanga to continue production on 4,800ha of sugar cane land returned to black trustees. The deal was concluded in April. The sugar company has leased the land for 22 years at an initial rental of R12 million ($1.6 million) a year. The trustees will receive 50 percent of the dividends. There are also educational programmes aimed at transferring skills to the claimants.

"The first of these strategic partnerships began in 2002 and there is increasing interest in all the provinces," says Tozi Gwanya, the chief land claims commissioner. "We have found them to be effective in ensuring continuity and productivity of the farms."

These deals involve a lot of money and look good on paper. But how sustainable are they and will they change the lives of the trustees for the better?

"Some of the partners just want to milk the cow and they are happy to just be paid the management fees," says Gwanya. "When people look at these partnerships they must think about long-term planning and not immediate rewards. They must also look at the agricultural cycle."

Petros Silinda, the chairman of Siphumelele Tenbosch Trust from Siboshwa, says: "Our lives will change. Already some of the claimants work on the farm and there are plans to start projects like poultry farming which will create more jobs. It is important to understand that this is just the beginning."

Silinda's family was removed from the Komatidraai farm in 1954. He was born 13 years later. He knows about the removals from his parents and grandparents' tales.

His father has lived to witness the return of their land.

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