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Call to privatise homeland land

07 Oct 2011

The Democratic Alliance (DA) wants people who live on communally owned land, mainly applying to those who live in the former homelands, to have full and unhindered individual ownership of their land.

DA shadow minister of rural development and land affairs Lindiwe Mazibuko said on Thursday that her party was submitting a private members' bill to Parliament's Speaker Max Sisulu with the aim of giving effect to the notion.

Mazibuko said that people living in the former homelands make up half of South Africa's population of about 50 million.

"It is unacceptable that, in the seventeenth year of democracy, they are still waiting for their land rights to be made secure," she said.

Mazibuko went on to say that the inequities bequeathed by colonialism and Apartheid must be redressed to ensure a thriving rural economy that provides for job creation and economic growth.

"We strongly believe that full individual ownership must be extended to ensure that people living on communally owned land are empowered to live unencumbered on their land and leverage it to improve their livelihoods. Without full individual property rights, residents on communally owned land cannot use their land as loan collateral, rent, or sell any portion of it to enjoy the full benefits of land ownership," she said.

According to the DA's policy document, land ownership had the potential to ensure the expansion and diversification of the commercial agriculture sector to increase productivity, create more rural jobs and promote food security.

Mazibuko said the Constitutional Court's May 2010 finding necessitated the legislative amendments as the Communal Land Rights Act had been declared unconstitutional.

The DA's proposed law says that legislation must be drafted to ensure that all land in the former homelands is surveyed so that it is known exactly how much land exists and who is living on it. Currently, this land is categorised as "un-surveyed, unregistered state land" and "trust land" and is not properly registered in any database.

"Once the process of surveying land is complete, land must be registered in individuals' names in the Deeds Registry after a public announcement has been made calling for individual community members to register ownership of the land they are currently living on," Mazibuko said.

She said the rates collection system that applied in municipal areas should be applied in these areas as well, so that the entire country would be covered by a simple and uniform rates collection system.

"Currently, this system is not applied to communally held land. This new system would require these areas to be demarcated as municipalities and therefore subject to the provisions of the Municipal Systems Act," Mazibvuko said.

"We trust that the Portfolio Committee on Private Member's Legislative Proposals and Special Petitions will consider our proposal favourably, and bring much needed relief to the residents on communally owned land.

"People living in the former homelands have been denied individual land ownership for too long. We believe it is high time that their rights are recognised as part of our national land reform strategy." - Paul Vecchiatto, I-Net Bridge

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In response to Bruce Whitfield's radio call last night on the Money Show, for ideas to address the job creation issue, I suggest the following:-
I fully agree with the proposal to privatise "homeland" land, but would suggest that as an immediate boost to job creation, the process should be separated into two parts:-
Part 1/ All of those businesses (e.g. farms, shops, service stations, etc)  operating under a "PTO" (permission to occupy) arrangement, should be allowed to fast-track the survey of their properties, and the title transferred to them immediately, and
Part 2/ The probably very lengthy process of surveying the balance of the old Homelands, with its myriad of shacks, houses, unoccupied land, etc, should proceed independently.  
The effect of Part 1 of this process this would be :-
to allow the newly registered "business" land to be used as co-lateral for raising loan capital for their businesses (the current communally owned land cannot be used as security)
to incentivise the new land owners to improve their properties, as a result of their new security of tenure,
to  create jobs, as they physically improved land and buildings,
to arrest the rural - urban drift, as a secure future in rural areas became a reality
to create a rates base for rural municipalities
to create a market for the buying and selling of businesses in rural areas
to allow for farm properties to be consolidated, and more viable units created (moving away from subsistence farming)
to stimulate the purchase of farming machinery, creating better farms, and adding to RSA food security
to create immediate credit extension, adding to GDP growth.
to create a more viable rural infra-structure, with local businesses better able to support themselves, as a result of the infusion of newly employed people
If each of the estimated 30,000 small businesses, employed an additional 5  people (building contractors, farm laborers, etc) to upgrade their properties as a consequence, an immediate 150,000 jobs would be created, and if each rural job supports approx 8 people, that would be an immediate benefit to 1,200,000 people (taking them off the "grant support" list). 
All at no capital cost to the State. - Rick Bisset 
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