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SA expropriates first farm in reform drive

February 13 2007 at 03:21PM
By Gershwin Wanneburg

South Africa, under pressure to redress land ownership imbalances left by apartheid, has expropriated its first farm in a reform drive aimed at returning land to the black majority, officials said on Tuesday.

The state-ordered sale of a farm in the Northern Cape marks a new phase in the contentious issue in South Africa, where the government has come under fire for moving too slowly to put land in black hands.

More than a decade after the end of apartheid, over 90 percent of farmland is still owned by white farmers.

Growing impatience
Until now, the government has moved cautiously, careful not to rattle investor nerves given the chaos that accompanied a similar land redistribution process in neighbouring Zimbabwe.

But the government has recently hardened its stance, and officials said they would use the full power of post-apartheid laws which allow government to order land sales to speed up the process.



The first expropriation took effect on January 26, the Commission on Restitution of Land Rights said in a statement.

"I think it (the expropriation) is most significant... It (reform) is something that cannot lag forever," said Susan Booysen, a political scientist at the University of the Witwatersrand.

"The nitty-gritty of each individual case is an incredible mine field government has to go through."

Restitution is part of South Africa's broader land reform programme and allows blacks, many of whom were evicted from ancestral lands, to apply to have their rights restored or to ask for financial compensation.

They can also seek government loans to purchase land.

The farm in the Northern Cape province had belonged to the South African Evangelical Lutheran Church, which has been ordered to sell it for R35,5-million, the commission said.

The land was claimed by 471 local families, among them workers on the farm.

The commission said in August 89 percent of such cases nationwide had been settled, but overall the transfer of land has been far too slow in the eyes of many black South Africans.

Amid growing impatience and threats to invade land from small activist groups, South Africa has promised to move more quickly to erase one of the most glaring inequities left by decades of apartheid rule.

Agriculture and Land Affairs Minister Lulu Xingwana - who has blamed white farmers for inflating land prices and stalling change - last year set a six month deadline for price negotiations after which she would take steps to expropriate.

President Thabo Mbeki's government has distanced itself from the violence that hit nearby Zimbabwe after tensions over land boiled over several years ago in a series of government-sanctioned farm seizures.

Zimbabwe President Robert Mugabe's critics say the country's current economic crisis is largely the result of the chaotic land grab, which gutted the key commercial agriculture sector gutted and frightened overseas investors.

South African officials, by contrast, emphasise that land redistribution will be governed by law, and in most cases will rely on negotiation with landholders to arrive at a fair price for the farms being repossessed.

quote:

Amid growing impatience and threats to invade land from small activist groups, South Africa has promised to move more quickly to erase one of the most glaring inequities left by decades of apartheid rule.

And so it begins.

quote:

Originally posted by Duckear:

...

More than a decade after the end of apartheid, over 90 percent of farmland is still owned by white farmers.

...

But the government has recently hardened its stance, and officials said they would use the full power of post-apartheid laws which allow government to order land sales to speed up the process.

...

I have a game ranch in nortern SA (Limpopo) where a land claim has how been lodged 9 (yes, nine!!) years ago - without being finalized. In the meantime I cannot practically improve or sell the land.

I have gone as far as offering the land to the government officials in a normal sale to expedite the process. We also proposed a management agreement where we involve the new owners in a joint venture. They work there and we bring the hunters, rent the land and manage the place. No luck. Zip. Not even a reply.

When I see these statements about "getting tough", it honestly makes me puke. They must rather spend their time on just getting the job done. Most ranch owners are willing sellers if the price is OK - and largely land owners are getting fair prices for the land where the process does eventually go all the way. The real bottleneck is with the land claims office in especially the Limpopo province. Most are simply incapable of doing the work. I've not seen any organization where more workshops are held. If they want to get tough - fire some of the dupes and incompetent managers in the Land Reform office and replace them with fast-moving, capable professionals. It will only take a few months to sort out all outstanding claims. (We have been promised by the Cabinet minister in charge that all claims will be finalized by the end of 2007. I am as sceptical as it comes. The end 2007 is already a revision of the first deadline!)

I guess the longer the process is drawn out, the longer a few thousand individuals remain stacked in paying jobs. Doing the work? What? Nobody said having a job meant actually doing work ...

The guy that works with my claim has this wonderful empty saying when I ask him for any kind of schedule of events planned: "I will try my level best to do it as soon as possible"

It could have been funny if it weren't real ..

affirmative action types and paperwork are never a good combination.......no matter where they're at.

WE ( fortunately) have a good news story ourselves on the land grab re-distribution or whatever we might want to call it.

My brothers farm in Limpopo Province has been claimed and (we did not challenge the price offered) for the land by the government, so the process ALBEIT a bit slow did proceed without any recriminations or heartache so to speak.

We were offered a reasonably fair price for the land/improvements etc and duly accepted it without challenge.

WE still (own all the game animals on the land) as they are NOT included in the land claims. WE have proceeded to sell some of the game animals and also to relocation the remainder as appropriate

Cheers, Peter

On the other hand, once this is done, painful as it will undoubtably be, they will not be able to use the "decades of apartheid" excuse any more and will have to find another excuse!
Peter.

Well, I am happy that the owners will be getting a "reasonably fair price" for their land. The sad part will be what these wonderful properties look like in 10 years after much neglect. I like the JV option if it is in fact feasible. But not sure if I as hunter want to share the lodge or my chalet with 20 or 30 resident "owners"......

SA has just driven a stake through the heart of foreign investment. The financial world rewards stability, predictability and equitable standards.

The decision to accelerate an already controversial program due to politics makes instability a certainty for the foreseeable future. Since foreigh markets will perceive any investment as high risk, the returns are going to have to be commensurate with any high risk investment - annual returns north of 30% on capital invested.

The markets will look at Zim for a comparision - perhaps a worst case scenario, but nontheless a contemporary comparable.

So foreign cash will demand high returns. Those returns will not come from increased production or output, since at least in the farming sector production will actually decline. So the only way of reasonably increasing returns when growth is not viable in the short to intermediate term is to increase prices. And price increases will no doubt lead to inflation.

The government will not be able to help much, since it is likely any bonds they issue will have to be prioced for risk to attract any foreign capital. But the government WILL float bonds at high rates, and will have to cover the interest on the debt out of tax revenue. That option leads to higher taxes.

With inflation plus higher taxes, businesses will fail or relocate, reducing the tax base. And short of the slight chance attracting new businesses, the remaining tax base will have to absorb the shortfall.

Hopefully, SA will reconsider its course of action.

Fortunately, I was able to sell my farm last year before this nonsense took hold. On the day of closing a land claim was submitted if you can believe that. We bypassed it and sold anyway. I owned the farm for about six years and based my safari company's operation there but as the tides began to turn, felt it in my best interest to sell. As an American, I was sure it was only a matter of time as it's much easier to "evict" an absentee owner. Now, I just lease exclusive hunting rights to all the farms in the area and hunt those. I will never buy another hectacre in SA. Of course the new swing is "black empowerment" whereby I must take on a black partner to share in my company's profits. When this comes to pass you will find me in Namibia or elsewhere. The country of SA cannot recover from it's own affirmative stupidity.

Ken Moody

quote:

They can also seek government loans to purchase land.

Anyone want to purchase those loans?

What's going to happen to this land once it's "empowered" to black control?

What about the people who were employed by whites on these farms?

Just a follow up on the general land owneship scenario in Southern Africa specifically.

Like anywhere in the world one needs to be circumspect when buying land or any other commercial enterprise for that matter.

As mentioned in my previous post we had no problem ourselves with selling our Limpopo Province ranch to the government, in fact we are (rather pleased) apart from the nostalgic connection BUT times move on and we must move on as well.

The reason some others have had problems with their land claims is that a small minority have tried to milk the golden goose and have wanted much more than the land is valued at and have then taken it to court. I dont say they are wrong just that we need to be careful we dont try to bleed the system and get a lot more than it is actually worth. Of course I understand that imporovements over the years are expensive and that those costs may never be fully recovered BUT at the end of the day the land only has a (basic intrinsic value) and we believe we got GOOD value for money with our land claim payment

We still have another (much more scenic and larger private Conservancy Ranch) in the beautiful Soutpansberg mountains region (Limpopo Province SA) and although there may possibly be miscellaneous land claims on it THEY have NOT been formally Government Gazetted, so we personally DONT worry about something that might never occur. The actual claimants have to go through a difficult legal process themselves to prove to the government they have a legit claim on the land and this process I believe will expire in 2008 if not lodged, so if no claims by then it is a dead issue.

Having said that WE personally are not running from SA ourselves BUT we are now diversifying our (wildlife game ranching portfolio) more into Zambia and presently, apart from our Prime Dendro Park Ranch which is under a multi million dollar equity based share VIP investor buy-in development WE have since purchased two more properties in Zambia for future wildlife conservation expansion.

WE are very confident ourselves having been investors in Zambia for 10+ years that the future is bright for private investors such as ourselves. Zambia (by africa standards) is very stable and all their culmitive foreign debt has been (totally written off) and the country is to a large degree funded by the EU and other friendly partners.

We are positive ourselves and leave the negatives to others to argue over

Cheers, Peter

quote:

Originally posted by Balla Balla:
WE ( fortunately) have a good news story ourselves on the land grab re-distribution or whatever we might want to call it.

My brothers farm in Limpopo Province has been claimed and (we did not challenge the price offered) for the land by the government, so the process ALBEIT a bit slow did proceed without any recriminations or heartache so to speak.

We were offered a reasonably fair price for the land/improvements etc and duly accepted it without challenge.

WE still (own all the game animals on the land) as they are NOT included in the land claims. WE have proceeded to sell some of the game animals and also to relocation the remainder as appropriate

Cheers, Peter

Glad to hear it Peter. You wont have to try and peddle it here anymore. Good.

Cheers, DB

quote:

Originally posted by Dungbeetle:

quote:

Originally posted by Balla Balla:
WE ( fortunately) have a good news story ourselves on the land grab re-distribution or whatever we might want to call it.

My brothers farm in Limpopo Province has been claimed and (we did not challenge the price offered) for the land by the government, so the process ALBEIT a bit slow did proceed without any recriminations or heartache so to speak.

We were offered a reasonably fair price for the land/improvements etc and duly accepted it without challenge.

WE still (own all the game animals on the land) as they are NOT included in the land claims. WE have proceeded to sell some of the game animals and also to relocation the remainder as appropriate

Cheers, Peter

Glad to hear it Peter. You wont have to try and peddle it here anymore. Good.

Cheers, DB

I thought Peter told us it wasn't under claim when trying to sell it on the net?

***

With regards to the main story above.

Exactly what will happen to these "reclaimed" farms?

Will the obviously sizable farm previously owned by the Luthera Church in South Africa, become just another mass of mealie meal subsistence plots and the rest over grazed by goat herds? Thereby reducing economic activity and destroying the land.

Posted by Balla Balla 16 October

quote:

quote:
Originally posted by NitroX:

Peter,

Is this the same farm you were advertising on AR for sale to members here, hunters etc?

Knowing there was a claim on it?


NitroX

YES that is the same ranch .... BUT we only advertised it on the open market prior to it being (formally gazetted) as a land claim.

What you & others need to be aware of is that there are a (multitude of claims) on many many ranches throughout SA and also rumours of claims BUT until it is formally gazetted and a letter is received it is open game for purchase by anyone.

Sometimes it takes years for claimants to prove their case in COURT and MANY have NOT proved their case and their (pre-claim testing the waters) has been thrown out of court, therefore the ranch becomes totally free from future claims, and open for sale again, so it is a tightrope sometimes to judge. Each case has to be taken on merit and with patience

The best policy to follow is to ignore the rumours of claims UNTIL the actual (letter arrives in the mail) that is how we operated and will do so in future instances should they occur again on the other ranch. That policy works well, unless someone can offer me some other better ideas on how to approach it

Dont worry, everyone interested and enquiring about a ranch purchase in SA ALWAYS asks me and others alike the same question (is there a claim) and they get the bona fide same answer as I have outlined above

All questions welcome

Cheers, Peter

With other folks hashing this out for years, doens't that seem to be a bit fast?

Govt considering farm taxes
15/02/2007 21:39 - (SA)

Cape Town - The South African government is considering special farm taxes and other legal measures to persuade big landowners to redistribute their land in favour of the poor, said Agriculture Minister Lulu Xingwana on Thursday.

She said the government also would press ahead with confiscating more farms at the centre of claims by communities forced out during apartheid.

On Tuesday, the government carried out its first expropriation - that of a large farm near the mining town of Kimberley after negotiations with its owners, the Lutheran Evangelical Church of Southern Africa, on a final sale price stalled.

Land restitution is a central plank of government policy. About 79 000 families and communities evicted from their ancestral lands have lodged restitution claims since 1994.

Of these, 8 000 of the most-contentious remain to be settled and the government has accused farm owners of dragging their feet in the hope that market values will rise.

Xingwana wants to settle all remaining land claims by 2009 and to impose a six-month limit on negotiations.

Xingwana emphasised there would be no land grabs as has happened in Zimbabwe.

She said any land confiscations would be "according to the law, within the constitution of South Africa and we will be paying market value for the land that was expropriated".

She said the government hoped to approve a new law on expropriations by June and to set up a new body to acquire and develop farms for land-reform purposes.

The government wants to speed up its wider reform programme for 30% of agricultural land to be owned by black and mixed-race communities by 2014 to ease the crushing rural poverty that causes a constant flow to the cities.

So I wonder, of the 71,000 claims that have been settled will THEY be subjected to this new tax? No I suppose "the rainbow government" where everyone is equal will only be imposing this tax on WHITE landowners.

When I hunted this past year with Bobby Hansen, he told me of this scenario and how it appeared to be unfolding. His concern was the fact that he may have to take on a black partner in his business (read, actually, GIVE 1/2 of his business away for essentially nothing) and that may be a big problem for him. He owns quite a bit of land in the Northern Province and has a healthy business with many repeat clients. I think the whole deal sucks....and while it may not end up like Zim....anyone want to say that things will be better when the blacks have their land back?....I didn't think so.

Gary
DRSS
NRA Lifer
SCI

quote:

Originally posted by Jim Manion:

With other folks hashing this out for years, doens't that seem to be a bit fast?

Hi Jim

No it has not been that fast really, as we are still (sitting/living on the property as per normal) the only differance now is we have to make plans to get rid of the herds of game animals that still exist on the land.

The process is still meandering its (slow way down the road) to final handover/redistribution. We are not in any rush really and we proberbly expect to vacate the land by around mid year. We dont really care as things take time in Africa as we all know only toooooooo well.

The bottom line is (we did not try to milk the system) and get more than the price offered by the government, and therein lies the reason why we have not had any major heartache.

I dont know (what others have done) and why their process has landed them in disputes and other long delay issues, only they can tell us why.

As I say (we have got a good deal) in our own eyes and therfore we have moved forward and bought other ranch properties in Zambia and still have some spare change left over.

WE have just sold the 4 x white Rhino as well off the old claimed property, so that gives some (nice cash flow as well) to futher develop into Zambia

Cheers, Peter

Peter

Did you manage to sell any of the property off as "units" before the land claim?

Were any of the "units" sold, exempt from the land claim?

Where did your rhino go, may I ask?

quote:

Originally posted by NitroX:
Peter

Did you manage to sell any of the property off as "units" before the land claim?

Were any of the "units" sold, exempt from the land claim?

Hi John

No, the ranch was/is still my brothers actual home, it is a self contained 6000 plus acre single unit game fenced farm. It was never divided into any units. It was origionally a derilict piece of land when Alan purchased it some 15+ years ago now. He then proceeded to game fenced it, built dams a very nice lodge/chalets and basically enhanced the land and facilities into a nice game ranch. He also has his own house/swimming pool and a managers house as well on the property.

He still owns the other Conservancy Ranch in the mountains about 120 km from Zimbabwe Beit Bridge border and it was infact origionally two farms with a dividing fence between which he removed to create the single Conservancy of over 10,000 acre

Use Enough Gun //

I dont know whom actualluy bought those 4 x white Rhino on the property, being 2 x male and 2 x female ... BUT I can find out if you wish !! I just got an email a couple of days ago from to say they were sold. Alan origionally purchased the Rhino from the Natal Parks board some years ago

Cheers, Peter

Its sad when one is forced to give up one's home and especially if the owner substantially improves it.

So what is going to happen to it now? Be used for over-grazing goats? Or some minister's "investment" in the country?

quote:

Originally posted by NitroX:
Its sad when one is forced to give up one's home and especially if the owner substantially improves it.

So what is going to happen to it now? Be used for over-grazing goats? Or some minister's "investment" in the country?

John

It is anyones guess as to what will happin to the place once vacated, very nice lodge, 3 x double chalets, 2 x house, 2 x swimming pools etc. I dont know whom or how many claimants there are. It will be interesting anyhow to see what it looks like a year from now !!

Technically speaking, once the claims is totally settled after Alan has moved all his game animals off the land and finally vacates the place, then the claimants can proceed to sell the place to anyone they wish if they choose, which is possible especially if they prefer money to land and dwellings.

In theory, Alan OR anyone else on the open market could in fact (buy it back again) from the claimants.

Alan will however still as I say retain his (much better) Conservancy Ranch in the mountains BUT he will NOW concentrate more on his private Zambia expansion projects as there are ONLY 40 or so (game ranches in Zambia) in total. Game ranching per se in really only in it's infancy in Zambia compared to SA which has over 9,000 ranches.

Alan, I think, was one of the very first privare ranchers in Zambia in 1997 to create a (full blown commercial game fenced BG hunting) property there. WE have led the way in Zambia game ranching with Dendro Park Preserve being the only private ranch in Zambia which borders upon a National Park boundary, being the Southern Kafue National Park. The NEW Zambia law states (no game ranch) can be situated less than 10 kms from a park boundary. WE have legal title, Zambia Investment licence, and all other paper work pertaining and confirming the ranch location on a 99-year title lease, so it is a very unique location, and of course has the largest (privately owned) cape buffalo herd in the world on the property, unless someone can in fact tell me whom has a larger private owned herd anywhere in Africa !!

Peter