INKEZO LAND COMPANY

1
INKEZO LAND COMPANY

• Presentation to
• Parliamentary Committee Land Agric
• 18th October 2004
• Nomkhita Mona

2
Outline of Presentation

• Background
• Vision
• Key Inkezo Deliverables
• Services
• Pre-settlement Support
• Post-settlement Support
• Challenges
• Call to Action

3
Background

• Section 21 Company established by the Sugar
  Industry.
• Focus on land redistribution target of 30 set
  by Govt. by 2014.
• Willing Buyer / Willing Seller Principle
• Registered Nov 03/ Operational April 04.

4
Vision

• A sustainable sugar industry in South Africa
  ensured through diverse ownership of agricultural
  land under sugarcane by competent farmers by
  2014
• Bigger vision replicate Inkezo model to other
  Agricultural commodities

5
Key Inkezo Deliverables

• Transfer 78 000 hectares by 2014 650 has per
  month.
• Key deliverables
• Lobbying and fundraising
• Fast track land reform hectares redistributed
• Sustainability Pre-and-Post transfer support

6
Area Under Cane
Area under cane data Ha of Total
Total Area Under Sugarcane 430 000 100
Under Black Control 110 000 25
Freehold Land 40 000 9
Tribal Land 70 000 16
7
Sugar Industry Land
Ha
SA Black Controlled Land 110 000
Total Swaziland Industry 49 267
Total Zimbabwe Industry 42 000
Total Mozambique Industry 30 000
Total Malawian Industry 18 411
Total Tanzanian Industry 21 200
Total Zambian Industry 11 042
8
Services

• Grant funds International and national grant
  funds to facilitate a commercial transaction
  (willing-buyer, willing-seller)
• Finance to the new farmer LRAD, Financial
  Institutions subsidized interest rates,
  underwrite exchange rate on foreign loans
• Waive or reduce transaction costs Cost of
  subdivision, survey, Ministerial approvals
• Access to information and processes Land
  transfer rules and laws

9
Pre-Settlement Support

• Create informed willing buyers
• Basic information / Reality check
• 2/3 Day Mini course
• Highlight risks benefits of farming
• Technical, Financial Industry Support

10
Post-transfer support

• Extension Support
• Sugar industry structures
• Mentorship - Ongoing
• Financial Management
• Commercial and buying assistance
• Agronomic advice
• Integration into the farming community
• Marketing (Not an issue in the sugar industry)

11
Challenges

• Dedicated Government Funding
• Donor Funding
• Donor environment restructuring
• Some donors moving out of land reform focus on
  Aids, Human Rights, etc
• Support on Training Mentorship

12
Challenges

• Bureaucracy / Unnecessary Red Tape
• Lack of coordination
• Insufficient funding
• Ability of the Willing Buyer to raise finance
• Production Money
• Researching different models of land reform

13
Financing

• Traditional financing mechanisms not adequate /
  not suitable
• New innovative products by financiers
• Creative and Innovative ideas for access to
  funding for new farmers especially costs to
  bridge affordability gaps
• Incentives for the financiers

14
Call to Action

• Colloquium
• Fundamental strategic issue of national interest
• Input by wide range of members of society
• Common national vision about how land reform is
  to be approached

15
Conclusion

• Delivery is not negotiable
• Long-term solutions rather than short-term
  approach
• One-stop shop
• Sleek bureaucratic systems
• Seamlessness between parties (DLA, Land Bank,
  DoAgric, Financiers, etc)