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OLD MUTUAL

FAMILY BUSINESS

  • - As South Africa celebrates the 60th anniversary of Human Rights Day, it’s worthwhile to reflect on land reform.

  • TLU SA today launched a campaign to object to unreasonable property valuations.

  • Land expropriation without compensation will only benefit the elite at the cost of South Africa.

  • South Africa's slow land claims process is set to face even more delays - this time due to the coronavirus pandemic.

  • In recent years, the ongoing land debate in South Africa has been drawing a lot of the world’s attention.

  • The COVID-19 crisis has clearly demonstrated the vulnerability of the livelihoods of many South Africans, and highlighted food insecurity as one key aspect.

  • The South African agriculture sector has the potential to be amongst the sectors that will drive economic growth and job creation during the post-COVID-19 recovery phrase.

  • There is consensus that land reform is an indispensable yet complicated process often overloaded with multiple objectives including economic, social and political underpinnings.

  •  Rural women across Mozambique, South Africa, Zambia and Zimbabwe are being dispossessed by corporates and state-backed land grabbers as well as urban and rural elites.

  • South Africa’s poverty levels have increased sharply over the past five years with an additional 3 million people now classified as living in absolute poverty.

  • Non-profit organisation, Vumelana Advisory Fund has facilitated the conclusion of a community private partnership (CPP) agreement between beneficiaries of the land reform programme Ebenhaeser Communal Private Association (CPA) and the largest producer of organic wine in South Africa Stellar Organics. 

    Stellar Organics is also the largest global producer of no-added-sulphur wines. The company  exports 80 percent of its wines to Europe, Asian, African and North American markets and 20 percent is for the local market. The Ebenhaeser Community Property Association (CPA) owns ± 18,283 hectares of land near Vredendal in the Western Cape along the N7 which runs from Cape Town to Namibia. The tiny settlement of Papendorp is located on its land. This CPA is one of the biggest land claims in South Africa. The government has allocated R233m for the purchase of the farms, which include vineyards. The CPA has more than 652 beneficiary households.

    The partnership between the Stellar Group and the Ebenhaeser CPA started informally in 2017 and was recently formalised through the Vumelana Advisory Fund, a non-profit organisation that helps beneficiaries of the land reform programme to develop their land in an effective and sustainable way, and is facilitated through community private partnerships.

    The community has entered into a 20-year agreement with Stellar Organics and has a management contract in place for the group to buy its entire vineyard production at competitive rates. The provisions of the agreement allow it to be terminated at any time.

    There were initially 44 farms up for restitution to the community. Thirteen have been transferred and are actively farmed; 9 are set to be transferred in April 2021 and the rest as soon as the present owners have harvested their final crop. This will make the Ebenhaeser CPA the biggest black-owned vineyard in the Olifants River area.

    The CPP model

    Community private partnerships (CPPs) are formations established between private parties and communities that acquire access to land under the land reform programme. Typically, the communities bring their land and labour and the private partner brings capital and skills to the partnership. CPP contracts are structured to ensure that the partners are able to meet their obligations and exercise their rights in a manner that supports the profitable operation of the business venture into which they enter.

    While in a typical CPP agreement the community brings land and the investor brings financial resources and skills, in this instance instead of the conventional approach, the investor will be supporting the community in acquiring the knowledge and skills to be able to eventually produce wine and juice of quality for local and international markets themselves. They will be establishing the local and international relationships needed to sustain themselves in this sector.

     Partnerships for land reform

    Speaking about the conclusion of the CPP agreement with Stellar Organics, Madelein van Niekerk, chairperson of the Ebenhaeser CPA stresses that Vumelana does not do the farming for them, but enabled them to do it themselves through the partnership. “When we got back our land, we had no knowledge of farming, nor the capacity to undertake any activities on the land. Through the partnership we have been able to learn more about farming and risk management and this has been a critical component in ensuring that we don’t end up as another failed land reform story.”

    The community currently produces grapes on 81 hectares of the land and 339 hectares are being used for seasonal vegetable farming by subsistence farmers. The community supplies the Stellar Group with grapes at competitive rates, which the group uses for its wines and fruit juices.

     “We employ 18 permanent employees and 50 seasonal workers and have plans to expand as more land becomes available; but we can already see the difference in the community, as we are much better off than we were  over the past five years before the investor support,” said Van Niekerk.

    Through its partnership with the Stellar Group, the CPA has secured a deal to export pumpkins for the Netherlands market. This will take effect from December – the harvest season. Cash crops, which include tomatoes and beans, are being produced for the local market. Plans are under way for the community to set up a juice production operation in conjunction with Stellar in the middle of October 2020.

     “A further boon this year is a planned R100 million water pipeline which will become operational in September to boost water security and enhance farm production,” Van Niekerk said. “Vegetable farming has enabled us to diversify and has been critical in assisting us in shouldering the current Covid-19 challenges with grape farming, especially the restrictions on wine supply – which is a hugely dependent on our produce.”

    Commenting on this milestone, Peter Setou, Chief Executive of Vumelana said “This is proof that properly structured partnerships between private sector players and land owning communities can not only ensure productive use of restored land, but also address critical challenges facing communities such as skills, jobs and poverty.”

    The private partner’s perspective of community private partnerships

    The relationships with the Stellar Group were initially established in 2017, and formalised recently through the support of the Vumelana Advisory Fund. The Stellar Group has been supporting the community for the past two seasons; and has assisted in putting in place structures and policies for the community to farm their land; and in setting up governance structures to ensure that it follows proper legal procedures in its work.

    On inception of the agreement, the Group invested R800 000 in supporting the community to get the harvest in, to pay electricity bills that had accumulated over time and to cover other operational costs. Out of that investment, the community was able to yield R2.3 million worth of harvest in its first harvest season.

    “Our view is that the government has given the people back their land, and that’s critical, especially within the context of the country’s history,” said Willem Rossouw, managing director of Stellar Organics. “The community has water rights, and are now expected to work and create a life for themselves. However, if they do not have the skills and the knowledge to farm, they will fail. It’s not the sole responsibility of the government to give the people knowledge, it’s also the responsibility of those who have been farming that land to support and make sure that communities succeed, because if communities fail, we all fail. These partnerships should be driven through a non-greed approach, where we share skills and resources and knowledge to enable communities to stand on their feet and eventually be able to do what they need to do on their own.”

    He pointed out that the businesses that benefit from the produce that farmers provide need to also play their part.

    “Big businesses in the wine, food and beverage industries have a critical role to play in these CPP partnerships and within the entire value system, and if they are not doing anything, we need to call them out. We cannot have black farmers fail because of a lack of knowledge or resources, when we have other farmers and businesses in this country who possess those skills. Everyone needs to come to the party and make sure land reform succeeds. Put aside selfish agendas and be selfless in doing what needs to be done to get new land holders on the farms to succeed!” Rossouw said.

     About Vumelana Advisory Fund 

    The Vumelana Advisory Fund (Vumelana) is a non-profit organisation that helps beneficiaries of land reform programmes to put their land to profitable use by establishing commercially viable partnerships between communities and investors. Vumelana was established in 2012 to support the establishment of commercially viable partnerships between investors and local community landowners to create jobs, income and skills. It aims, among other things, to demonstrate the value of Community Private Partnerships (CPPs) as a contributor to successful land reform. To date, Vumelana has facilitated 20 partnerships, putting approximately 68 800 hectares of land to productive use; assisting over 15 000 beneficiary households across the country.

     

    Vumelana means to agree with one another, make a contract with one another, support one another.

  • Parliamentarians are greatly concerned that the Department of Agriculture, Land Reform and Rural Development has had to slice some R2.4 billion from its R16.8 billion budget.

  • South Africa's land reform programme was supposed to ensure that the impoverished get to own and work the land. Now, only the politically connected and economically included are benefitting.

  • Government-driven land reform programmes will falter if women from beneficiary communities do not play a central role in the governance of communal property associations (CPAs) and the programme is not accompanied by financial and technical support.

  • President Robert Mugabe’s notorious land reforms in the early 2000s robbed thousands of Zimbabwean farmers of their land, and of their livelihoods.

  • On Thursday 3 September the Institute for Poverty, Land and Agrarian Studies (PLAAS) hosted an online discussion on land activism in South Africa. The discussion was moderated by Boaventura Monjane, a postdoctoral researcher from PLAAS.

  • On August 31, the government of Zimbabwe announced that foreign white farmers settled in the country who lost land between 2000 and 2001 under former President Robert Mugabe's controversial programme of land reform designed to empower landless Black peasants could apply to get it back.

  • Land reform is central to South Africa's quest for social justice. During the apartheid era, land was concentrated in the hands of the white minority.

  • The African National Congress (ANC) is determined to use Parliament as a mere rubber stamp for its December 2017 decision to amend Section 25 of the Constitution (the property clause) to allow expropriation without compensation (EWC). And Parliament continues to go along with this – and to pretend that it is doing a proper job on the most important legislative change ever to come before it since 1994.

  • TLU SA is nie oortuig dat die regering die verskil tussen landbou en sosio-maatskaplike hulp besef nie.

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 LANDBOU 

Farming Diary

Oct
29

10.29.2020 4:00 pm - 5:00 pm

Nov
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11.04.2020 4:00 pm - 5:00 pm

Apr
7

4:00 pm 04.07.2021 - 5:00 pm 04.09.2021

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