SAPOA agrees on land reform, not economic inefficiency
The South African Property Owners Association (SAPOA), whose members comprise 90% of the commercial property sector in South Africa, agrees that land reform in South Africa needs to be addressed, but it should not come at the cost of food security or by breaking up economically efficient enterprises.
Neil Gopal, CEO of SAPOA, says, "We need robust and balanced debate around land reform. The fact that black people own only 13% of land in South Africa must be addressed. Only visionary policies and laws will effectively address the societal, economic and political effects of the 1913 Natives Land Act."
However, changing land ownership rights in South Africa also affects the need to ensure food security.
"South Africa must adopt a process to increase land ownership by the formerly disenfranchised that continues to support food security with effective agricultural structures."
The association's stance on the issue would see formalised property rights necessary for economic success in context of increased globalisation. This would be supported by government-implemented land reform which also trains and guides beneficiaries in social and economic participation during a transition period.
"Fair and transparent validation of historic property rights is fundamental to land reform." However, crop-producing land must be treated sensitively. Only 12% of South Africa's surface area can be used for crop production and high-potential arable land comprises a mere 22% of this. Therefore, breaking up commercially efficient enterprises for land reform poses a danger to food security.
"It isn't enough to simply maintain social and political stability. We rather need to create substantive economic change. Equally important to formalising land ownership is progressively and positively changing the wealth and income distribution of the South African populace."
SAPOA puts forward that different laws and policies could act as a cohesive, effective foundation to ensure a sustainable land reform process. These include the Expropriation of Property, Restitution of Land Rights Amendment, Property Valuations Bills and Preservation and Preservation of Agricultural Land Policy, among others. Nevertheless, as bills that will define the social, economic and political stability, or instability, of South Africa, these land reform bills should not be 'rushed through' and must be thoroughly debated first, to ensure legal, social, economic and political validity.
"We have to deal with practical realities. Those realities are that land ownership cannot continue to be left unaddressed. However, the redress of land ownership should be balanced against other rights. Working together, government, business and society need to ensure that South Africa has a sustainable post-reform land tenure system - a system that will ultimately lead to alleviation of poverty and to protection of food security," he concludes.
