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22 February 2022 | Story Leonie Bolleurs | Photo Leonie Bolleurs
smallholding symposium
Talking about the future of smallholder farming in South Africa, were from the left: Prof Linus Franke, Prof Philippe Burger, Dr Qinisani Qwabe, and Prof Ken Giller.

On 17 February 2022, the Department of Soil, Crop, and Climate Sciences at the University of the Free State (UFS) presented a symposium on the future of smallholder farming in South Africa on its Bloemfontein Campus. Head of the department, Prof Linus Franke, says with this symposium they aim to contribute to a change in the conversation about smallholder farming. 

Prof Philippe Burger, Pro-Vice-Chancellor: Poverty, Inequality and Economic Development at the UFS, presented on The forgotten: South Africa’s former Bantustans today. He believes in 30 years – although the first democratically elected government introduced new labour legislation, abolished the Bantustans, and created a single non-racial education system – not much has changed for the former Bantustans.

“Communal land in South Africa, mostly the former homelands such as the Transkei, Ciskei, and Bophuthatswana, is today trust land that are managed by traditional leaders. With the 2011 census, it was found that a large part of the population is still living on traditional land (32%),” he says.

According to his data, the number of people depending on subsistence farming has increased from 1 767 000 to 2 285 000 in the past ten years. 

The deeply poor, traditional leaders, and tenure rights

He says he does not believe that South Africa is only two nations in one, as was stated by former President Thabo Mbeki, but three. “There are the rich and poor in cities, with the poor still being predominantly black, and then there are the people living in what is euphemistically called deep-rural areas, basically the former homelands. There, the poor are even poorer than in the cities and they are virtually all black. And the ones who benefit in these deep-rural areas, are the traditional leaders.”

He believes that the poverty we see in communal areas can be largely linked to the lack of tenure rights. “People live and work on the land, but even though the constitution states that they should have tenure rights, they do not have tenure security. Thus, they cannot use tenure rights to leverage themselves to a better financial position,” he explains. 

The literature on tenure reforms, according to Prof Burger, boils down to one of three options. Firstly, individual titling of land where individuals farm on pieces of communal land allocated to them or their families, but without a title deed to the land. 

In the scenario of individual titling, it is impossible for people to sell land or to use it as collateral to obtain investment loans. He says in the Mystery of Capital, Hernando de Soto proposes the allocation of title deeds to individuals, thereby allowing them to use the land as capital to improve their lives. “It is, however, not the best solution because of overlapping use rights,” he states.

The other two options are a combination of communal ownership and small-scale farming, and a combination of communal ownership and large-scale commercial farming. Prof Burger says the two-tier system of titling is a better solution. “Here, the land is communal and the use rights to the land are recognised in the law. With recognised use rights, small-scale farmers can offer future income from their land as security to get loans,” he adds. 

However, according to him, what is also needed is the design of an economic ecosystem within which small-scale farmers can operate, proper education for the youth can take place, and extension services and training of farmers can be provided. “Government, the private sector, and universities can play a role.”

He also believes that democratising control over communal land – taking power from the chiefs and putting it in the hands of the community – will take away control from the chiefs, without denying them their constitutional right to have a role in society. “They will have a role in terms of tradition, belief, and culture, while control of the land will then reside with the people living on the land.”

“It is time that we bring the everyday life of the people living on communal land also into democratic South Africa. It needs to be done in such a way that it will improve their well-being,” Prof Burger concludes. 

A food security conundrum and small-scale commercial farmers 

Taking a step back to talk about smallholder farmers in sub-Saharan Africa, was Prof Ken Giller from the Department of Plant Production Systems at Wageningen University in the Netherlands. The title of his presentation, Smallholder farmers in Sub-Saharan Africa: Stepping up, stepping out and hanging in, refers to the different aspirations and livelihood strategies that smallholder farmers in sub-Saharan Africa pursue.

By 2030, the population is estimated to have grown by an extra billion people, with sub-Saharan Africa experiencing the most rapid growth. “As the population numbers rise fast, there is an urgent need to increase production of food,” says Prof Giller, who sees an opportunity for smallholder farmers in the challenge.

Defining a living income as the net income that a household will need to earn to enable it to make a decent living, he says in sub-Saharan Africa, 37% of households are food insecure. Given the small areas of land to which smallholder farmers have access, even a drastic increase in productivity per unit area will not be sufficient for many smallholders to make a living from farming. Nevertheless, agricultural development has proven to be the most effective way to reduce poverty and hunger among the poorest rural households.
To address hunger and poverty, a continued focus on food production in Africa is needed, as global food production for Africa cannot achieve zero hunger. – Prof Ken Giller

He says to address hunger and poverty, a continued focus on food production in Africa is needed, as global food production for Africa cannot achieve zero hunger (Sustainable Development Goal 2). 

Prof Giller believes a drastic rethink of policy is needed to support agriculture in Africa in order to achieve zero hunger, acknowledging the wide diversity of agro-ecologies, socio-economic situations, and farmers’ livelihood strategies. 

“Action is needed to rethink the future of farming. It is, however, a food security conundrum – achieving on the one hand cheap, nutritious, and affordable food for all, including the urban poor, and at the same time providing appealing livelihoods for smallholder farmers, with them receiving decent prices for their agricultural products,” he says. 

Speaking on the topic, Tackling sustainability through small-scale commercial farming, was Dr Qinisani Qwabe, Lecturer in the UFS Department of Sustainable Food Systems and Development. 

He believes that small-scale farmers see themselves as commercial farmers on a relatively small scale. They actively contribute to the market. Dr Qwabe suggests that most farmers who are considered emerging farmers do not like this term themselves, as it seems to put a label on them. 

Talking to small-scale commercial farmers, he learned that there are some hard realities they need to overcome on a daily basis. Some of the challenges they are encountering, include poor infrastructure, lack of capital, water restrictions, operational cost, access to markets due to poor roads in the area, and discrimination if you are a woman. 

News Archive

The failure of the law
2004-06-04

 

Written by Lacea Loader

- Call for the protection of consumers’ and tax payers rights against corporate companies

An expert in commercial law has called for reforms to the Companies Act to protect the rights of consumers and investors.

“Consumers and tax payers are lulled into thinking the law protects them when it definitely does not,” said Prof Dines Gihwala this week during his inaugural lecture at the University of the Free State’s (UFS).

Prof Gihwala, vice-chairperson of the UFS Council, was inaugurated as extraordinary professor in commercial law at the UFS’s Faculty of Law.

He said that consumers, tax payers and shareholders think they can look to the law for an effective curb on the enormous power for ill that big business wields.

“Once the public is involved, the activities of big business must be controlled and regulated. It is the responsibility of the law to oversee and supervise such control and regulation,” said Prof Gihwala.

He said that, when undesirable consequences occur despite laws enacted specifically to prevent such results, it must be fair to suggest that the law has failed.

“The actual perpetrators of the undesirable behaviour seldom pay for it in any sense, not even when criminal conduct is involved. If directors of companies are criminally charged and convicted, the penalty is invariably a fine imposed on the company. So, ironically, it is the money of tax payers that is spent on investigating criminal conduct, formulating charges and ultimately prosecuting the culprits involved in corporate malpractice,” said Prof Gihwala.

According to Prof Gihwala the law continuously fails to hold companies meaningfully accountable to good and honest business values.

“Insider trading is a crime and, although legislation was introduced in 1998 to curb it, not a single successful criminal prosecution has taken place. While the law appears to be offering the public protection against unacceptable business behaviour, it does no such thing – the law cannot act as a deterrent if it is inadequate or not being enforced,” he said.

The government believed it was important to facilitate access to the country’s economic resources by those who had been denied it in the past. The Broad Based Economic Empowerment Act of 2003 (BBEE), is legislation to do just that. “We should be asking ourselves whether it is really possible for an individual, handicapped by the inequities of the past, to compete in the real business world even though the BBEE Act is now part of the law?,” said Prof Gihwala.

Prof Gihwala said that judges prefer to follow precedent instead of taking bold initiative. “Following precedent is safe at a personal level. To do so will elicit no outcry of disapproval and one’s professional reputation is protected. The law needs to evolve and it is the responsibility of the judiciary to see that it happens in an orderly fashion. Courts often take the easy way out, and when the opportunity to be bold and creative presents itself, it is ignored,” he said.

“Perhaps we are expecting too much from the courts. If changes are to be made to the level of protection to the investing public by the law, Parliament must play its proper role. It is desirable for Parliament to be proactive. Those tasked with the responsibility of rewriting our Companies Act should be bold and imaginative. They should remove once and for all those parts of our common law which frustrate the ideals of our Constitution, and in particular those which conflict with the principles of the BBEE Act,” said Prof Gihwala.

According to Prof Gihwala, the following reforms are necessary:

• establishing a unit that is part of the office of the Registrar of Companies to bolster a whole inspectorate in regard to companies’ affairs;
• companies who are liable to pay a fine or fines, should have the right to take action to recover that fine from those responsible for the conduct;
• and serious transgression of the law should allow for imprisonment only – there should be no room for the payment of fines.
 

Prof Gihwala ended the lecture by saying: “If the opportunity to re-work the Companies Act is not grabbed with both hands, we will witness yet another failure in the law. Even more people will come to believe that the law is stupid and that it has made fools of them. And that would be the worst possible news in our developing democracy, where we are struggling to ensure that the Rule of Law prevails and that every one of us has respect for the law”.

 

 

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