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Land Tenure and Economic Development in Rural South Africa: Constraints and Opportunities

Literature › Works

Martin Adams; Ben Cousins; Siyabulela Manona (1999). Land Tenure and Economic Development in Rural South Africa: Constraints and Opportunities. ODI Working Paper 125. Overseas Development Institute, London.
Type working paper
Scope Post-1994 South African economy
Method policy analysis
Period studied 1860–1999
Regions former homelands (Eastern Cape, KwaZulu-Natal, Northern Province, North West), Mgwali (Eastern Cape), Tshezi / Wild Coast, Kenya, Botswana
Themes agriculture land, bantustans removals influx, inequality poverty unemployment, transition post apartheid, origins segregation, comparative theory
Citation key adams1999

Argument

The paper argues that tenure insecurity in the former homelands, a legacy of segregation and forced resettlement, constrains investment by rural households, government and the private sector. It favours an evolutionary 'adaptation-by-choice' reform that legally secures existing informal rights, rather than compulsory individual titling. Drawing on international titling debates, case studies (Mgwali, Tshezi/Wild Coast SDI) and recalculated estimates of land-based livelihoods, it claims the benefits of the proposed land rights legislation far exceed its costs. It stresses that tenure reform is 'necessary but not sufficient' and needs inputs, credit, extension and markets.

Evidence and method

Secondary literature on titling in Kenya and Botswana, and World Bank policy shifts; a DLA-commissioned study (May et al. 1998); the Statistics SA 1997 Rural Survey; SALDRU 1994 data; case studies by the Border Rural Committee and Buiten and Ntsebeza; ethnographic yield data (McAllister); Shackleton et al. valuations of livestock and commons; DLA case files; Poverty and Inequality Report.

Findings

  • Large rural population is concentrated on a small share of land in the former homelands, which have the highest poverty. (p. 5)

    About 2.4 million rural households or about 12.7 million people, 32% of the total population, are concentrated in about 13% of the country.

  • Poverty is predominantly rural and is tied to the homelands. (p. 5)

    poverty is mainly rural – 72% of the poor live in rural areas, 71% of the rural population are poor (cf 28% in urban areas)

  • The 1913 Natives Land Act eliminated competing African farmers and generated surplus labour. (p. 16)

    Immediately, the Government of the day had created surplus labour for the mines and the white agricultural sector. At a stroke, it had also eliminated competition from black farmers.

  • African tenant farming was widespread and efficient in the nineteenth century. (p. 16)

    In 1860, over 83% of the nearly half million hectares of white-owned land was farmed by African tenants.

  • Tenure uncertainty leaves much arable land unused in the homelands. (p. 16)

    in former KwaZulu, up to 70% of available arable land may lie fallow as the rights holders are unable or unwilling to farm it

  • Forced resettlement and farm evictions caused overcrowding and overlapping rights, creating a dilemma for reform. (p. 13)

    strengthening the rights of the original occupants could lead to the eviction of later arrivals; an unintended consequence.

  • Tenure uncertainty stalled housing delivery. (p. 19)

    In June 1998 in North West Province alone, housing projects valued at R90.5 million and involving 6080 sites were delayed awaiting ‘land availability agreements’.

  • Access to land for farming is wider than conventionally thought. (p. 25)

    71% of households have access to land for farming, although about half of these have access to less than one hectare.

  • Ethnographic measurement suggests much higher Transkei maize yields than surveys report. (p. 25-26)

    shows levels of production (2–4 tonnes per ha) which are comparable with those of commercial farmers

  • The aggregate value of land-based livelihoods is large, and modest enhancement yields sizeable gains. (p. 28)

    increases in the aggregate value of these livelihood sources could amount to R2 billion (at 15% enhancement) and R2.66 billion (at 20% enhancement)

  • Reform costs are small relative to estimated benefits. (p. 30)

    incremental operating costs of the proposed land rights legislation would level off at R108 million per year once the required personnel had been trained