The impact of large-scale agricultural investments on the livelihoods and

land rights of the people in the communal areas of South Africa

NkanyisoGumedePLAAS

Background & Context •  Large-scaleland-basedinvestments

–  Intensi<iedafterfood,fueland<inancialcrisis2007–2008(Halletal.2015)

•  70percent–Africa!–  World’slastreserveofunusedandunder-utilisedfertileandirrigablefarmland(Deiningeretal.2011;WorldBank2009).

–  Poorprotectionoflandrights•  Drivers

Governments;transnationalcompanies;domesticcompanies;different<inancialinstrumentssuchas–hedgefunds,pensionfunds,etc.

Background & Context •  Impact(differentiated)–  Changeinagro-foodsystemsandfoodconsumption–ZambiaandMozambique(JoalaandZamchiya,2016)

– Politicalcon<licts(Franco2014).– Displacementsfromland–Malawi&Zambia,(Hall,2015)

South Africa context •  Peopleinthecommunalareasrelylessonagricultureaslivelihood,butmoreonsocialgrantsandothernon-farmlivelihoods.

•  95%offoodsoldatretailersisproducedbylarge-scalecommercialfarmingenterprises.

•  Youngpeoplelessinvolvedinagriculturecomparedtoadults.

Objectives •  Understandingcharacteroflarge-scaleagriculturalinvestmentsinthecommunalareasofSouthAfrica–  Investors?Accessland?Promisedbene<its?etc.

•  Understandingtheimpactoflarge-scaleinvestmentsonthelandrightsandlivelihoodsofsmallholderfarmers.

Methodology •  Extensiveresearchmethod

–Householdsurvey•  Intensiveresearchmethod– Keyinformantinterviews–  Semi-structuredinterviews–  Focusgroupdiscussions– Observations– Resourcemappings

LAMBASI MAIZE PROJECT

LAMBASI MAIZE PROJECT •  EasternCapeprovince(LambasiVillage)•  Traditionalleadership(Contested)•  Strategicpartner–ZimeleFund(Anglo-American)2014•  Consultation–Chiefandcommunity•  Agreement

–  Farmersreleaselandtothestrategicpartner–  Promisedbene<its–Farmers

•  Dividends–Cash;Dividendsinkind–15bagsofmaize;Landusefee;Jobs&transferofskills

•  Bene<iciaries–350households-Project(900ha)•  Investmentvalue[R14m=US$1m]for5years•  Implementingagent–Technoserve

LAMBASI MAIZE PROJECT •  Pro<itsharingagreement

–  6%loanpaidtoAngloperproductioncycle–  Remainderpaidtobene<iciariesaftercostsdeductionwhichincludeTechnoserveimplementationfeeandalloperationalcosts

•  Commodity-Maize&Beans–2014to2016•  Results–Onlylandusefee(R700)paidandone50kgbagof

maizeperhectare(2014/15&2015/16)•  Jobs–few,shorttermjobs(lowpaying)andskills?•  Lossofaccessandcontroloverarableland,andothernatural

resources(thatchgrass,edibleweed,etc)•  Response–growingdissatisfaction

STRYDKRAAL IRRIGATION SCHEME

STRYDKRAAL IRRIGATION SCHEME •  Limpopoprovince(StrydkraalVillage)•  Traditionalleadership•  Consultation–Chiefandcommunity•  InvestmentR24m(US$1.8m)–Gov.–2007•  Agreement

–  Jointventurepartnership–  Farmersreleasedland,waterandinfrastructuretothestrategicpartner[Landarea370hectares&Irrigationsystem]

–  Promisedbene<its-Farmers•  Dividends;Jobs&transferofskills

STRYDKRAAL IRRIGATION SCHEME •  Bene<iciaries–260households•  Crops–Maize;beans;wheat,butternut,peanuts,etc•  Strategicpartnership

–  MrCraighton2007–2014[50%:50%]–  MrBotha–2014todate[60%Botha:40%Bene<iciaries]

•  Results–  Dividends-MrCraightonpaidR5000(US$370)tobene<iciaries

–BothapaidlessR3000(US$222)–  Response-con<lictanddivision

•  Jobs–few,shorttermjobs(lowpaying)andskills?•  Lossofaccessandcontroloverarableland

Conclusion •  Large-scaleagriculturalinvestmentsaretakingplaceinthecommunalareas,andaredrivenbydifferentactors.

•  Exclusionofelectedleadershipontheconsultationandduringtheinvestmentdeal.

•  Farmers’representatives–lacktransparencyandaccountability;Centralizedecisionmakingprocesses.

•  Promisedbene<itsmaterializeminimally.•  Landrightstoarableandcommonresourcearethreatened.

Recommendations •  Involveelectedleadership(consultationandnegotiations)

•  Empowerfarmerrepresentativesforbetterrepresentationofthefarmers,andimprovedaccountabilitytothefarmers

•  Createpropermonitoringandevaluationmechanismstoensuretransferofpromisedbene<its

•  Leavesomelandforsubsistenceproduction•  Trainlocalsontheuseoftechnology•  Involvefarmersonthemanagementoftheenterprise.

Thankyou!