DEPARTMENT OF LAND AFFAIRS

DEPARTMENTOF LAND AFFAIRS

PRESENTATION TO THE JOINT BUDGET COMMITTEE ON THE BUDGET EXPENDITURE

MS C CHOANE: CHIEF FINANCIAL OFFICER

MR T GWANAYA: CHIEF LAND CLAIMS COMMISSIONER

23 MAY 2005

Accelarating Land Delivery for Sustainable Development

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Vision

An equitable and sustainable land dispensation that An equitable and sustainable land dispensation that promotes social and economic developmentpromotes social and economic development

MissionTo provide access to land and to extend rights in To provide access to land and to extend rights in

land, with particular emphasis on the previously land, with particular emphasis on the previously disadvantaged communities, within a well planned disadvantaged communities, within a well planned

environmentenvironment


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POLICY CONTEXT


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STRATEGIC CONTEXT (2005/2006)

Framework for implementing land and agrarian reform• International: Millenium Development Goals• Regional: NEPAD• Subregional: SADC Land Technical facility• National:-

– Vision 2014: Poverty Alleviation and Job Creation- Ten year review- 2005 cabinet lekgotla resolutions- 2004 & 2005 state of the nation address - 2005 directives from the executing authority

Consolidating the African Agenda

Socio-economic development

Rural Development

Urban Renewal


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• Integrated land and agrarian reform implementation strategy

• Micro Economic Reform Strategy (MERS)• Comprehensive policy review process• Development planning within an African context• Contribution towards URP and ISRDP (land needs)• Facilitating development planning for land reform

projects• Devolution of functions to local government• Skilling land reform beneficiaries


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• Stateland disposal and management• Land for Housing • Land for human settlement strategy• CASP and LRAD• TRANCRAA• Decentralisaion of Land Planning and Information

finction (Project Mutingati)• eCadastre


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GovernanceIncrease the capacity of the International Relations Unit

Training on diplomatic relations and protocol

Project Mutingati

Internship and Learnership programme

Management development programme

Information security in terms of MISS

Human Resource Plan

Skills audit

Citizen Satisfaction Survey

Service Delivery Improvement Plan (Programme)


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AMOUNT OF LAND TO BE DELIVERED

• The total size of land in South Africa = 122 m (ha)• Total farmland = 100 million ha. • Total white-owned agricultural farmland = 82 million ha• The Government has set itself the target of delivering

30% of commercial agricultural land by 2014• 22 million ha of agricultural land must have been

delivered by 2014.• Therefore 20.6 million hectares must still be delivered• On average 1.87 million ha must be delivered per year

to meet target


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LAND DELIVERED SINCE 1994

• Total size of land delivered since 1994 is about 3,5 million ha ( 3 536 756.06 ha)

• This includes land delivered through the restitution, redistribution and state land.

• The total number of household/individuals that have benefited from land reform is 1 028 887

• The contribution per programme is as follows:


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LAND DELIVERED SINCE 1994

• Redistribution: 1, 780, 260. 35 ha

• Restitution: 887,093.00 ha

• Tenure Reform: 171, 554. 72 ha

• Stateland: 772, 660. 00 ha


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Restitution

• From 1999 to 31 March 2005: 59,345 claims settled • Benefited 172,769 households • Delivering to 887,093 ha of land.

• 31 December 1998: Validation project ascertained that 79 696 claims had been lodged.

• Total of 28 087 claims yet to be settled by 2008/2009 • 18 238 claims to be settled by 2005/2006• Remainder of 9 808 claims to be settled between 2006/2007 and

2008/2009

• These claims have an impact on the economy of South Africa, i.e. agriculture is the backbone of the economy in KwaZulu-Natal, Mpumalanga and Limpopo.


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Restitution• As part of its settlement process, the Commission developed an

implementation plan that indicates how the process is to be finalised.

• The development of the plan involved MINMEC and other stakeholders

• The President approved a 3 year extension for restitution to be finalised by 31 March 2008

• Minister of Finance announced a R6billion increase in the budget for restitution over the next 3 years

• Commission has created 280 posts to be able to increase capacity to process claims


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Restitution Ctd.• New strategies have been developed to fast-track the processing of

claims e.g. batching/grouping of claims, standard settlement offer, outsourcing, use of interns and seconded officials

• Belgium Government has approved 6million Euros for fast-tracking settlement of claims and a further 6million Euros for post-settlement support

• To this end, the process is beginning to bear fruit for the much needed support in the Post settlement process i.e. some Provincial initiatives have even begun to commit funds towards this to guarantee a sustainable settlement.


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Restitution SETTLEMENT OF CLAIMS OVER

THE MTEF PERIOD

PROVINCE 2005/2006 2006/2007 2007/2008

Urban Rural Rural Rural

Eastern Cape 2,869 338 434 193

Free State and Northern Cape 1,536 269 268 0

Gauteng and North West 71 228 294 130

KwaZulu-Natal 3,311 746 960 426

Limpopo 56 448 577 256

Mpumalanga 215 415 533 237

Western Cape 2,005 368 472 211

TOTAL 10,063 2,812 3,538 1,453

12,875

All outstanding Urban claims are planned for settlement

The 2005/2006 FINANCIAL YEAR


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Budget for the MTEF period up to 2007/2008 - Capital

Province Total Rural Urban 2005/2006 2006/2007 2007/2008

Capital

claims claims

1 2 3

Budget (R’M)

Budget (R’M)

Eastern Cape 1,108 965 2,869 381 382 345

Free State 238 143 893 116 91 31

Northern Cape 376 394 643 159 163 54

Gauteng 105 91 19 26 41 38

North West 551 561 52 137 213 201

Kwazulu/Natal 2,297 2,132 3,311 701 859 737

Limpopo 1,284 1,281 56 320 509 455

Mpumalanga 1,196 1,185 215 299 477 420

Western Cape 1,151 1,051 2,005 349 445 428

TOTAL 8,306 7,803 10,063 2,488 3,180 3,639

BASELINE 2,488 3,180 3,639OPTION I.T.O MTEF


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CASH FLOW PROJECTIONS 2005/2006

79.47 78.50

170.49

208.02

255.20 253.70

359.58

297.28

205.69

131.99 127.23152.33

-

50.00

100.00

150.00

200.00

250.00

300.00

350.00

400.00

APR MAY JUN JUL AUG SEP OCT NOV DEC JAN FEB MAR

ACTUALLINEAR


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BUDGET 2005/2006• The commission has over the Years managed to spent its budget allocation. The past financial year was no exception the total budget spent by the branch was R1.18 billion. The original allocation was depleted in October

2004 and an additional allocation of R200m, was advanced by National treasury in January 2005

RESTITUTION (CONT.)


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BUDGET 2005/2006 (REST)

• For the new financial year the commission was allocated a total budget of R2,7 billion broken down as follows:

Capital – R 2,5 billion ( 92% )

Current - R 0.2 billion (0.08%)


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BUDGET ALLOCATION PER PROVINCE

PROVINCE CAPITAL CURRENT TOTAL R'M R'M R'M %

1. EASTERN CAPE 213,000 32,865 245,865 9.1 2. FREE STATE & NORTHERN CAPE 103,000 18,475 121,475 4.5 3.GAUTENG & NORTH WEST 326,000 34,876 360,876 13.3 4. KWA ZULU NATAL 584,000 28,214 612,214 22.6 5. MPUMALANGA 507,998 29,266 537,264 19.9 6.LIMPOPO 468,000 28,783 496,783 18.4 7. WESTERN CAPE 287,000 23,197 310,197 11.5 8. NATIONAL OFFICE 21,004 21,004 0.8

TOTAL 2,488,998 216,680 2,705,68 100.0


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BUDGET 2005/2006

• For the remainder of the claim settlement period, the commision is left a good number of complex and high valued claims;

• The estimated prices range is between R120m to R250m.

• This the acquisition of land excluding the Business operations.

• Strategic partnering with the claimants is being advocated to mitigate against having to pay for the costly operations and in particular to ensure business continuity and skills transfer.


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Measurable objective: To resolve restitution claims through negotiated settlements that restore land rights or award alternative forms of compensation to claimants

Output Measure/Indicator Target All lodged claims settled as per the Restitution of Land Rights Act 22 of 1994, as amended

All valid claims gazetted18,239 claims

All valid claims verified 18239 claims Number of urban claims settled 10,436 claims Number of rural claims settled 8,394 claims No. ha allocated 100% No. of households benefited Approx. 300,000

households Sustainable development (Post settlement process) facilitated

Implementation plans finalised as per identified land use.Improved models and packaging options for settlementAlignment of restitution projects with municipal IDPsCollaboration with DoA and PDALA for implementation of CASP and MAFISA (ACS)

March 2006 Collaborate agreements reached by December 2005

Meduim term output targets –Restitution


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2005/06 MTEFper Programme

Econmic Classification

2005/06

R’000

2006/07

R’000

2007/08

R’000

Administration 214 523 225 191 231 794

Surveys & Mapping 75 256 81 255 85 854

Cadastral Surveys 86 043 90 815 97 215

Restitution 2 705 678 3 369 132 3 837 607

Land Reform 770 098 1 016 313 1 349 134

SPI 19 222 20 039 22 502

Auxilliary Services 10 693 12 526 13 077

Total 3 881 513 4 815 271 5 637 183


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2005/06 MTEFper Programme

5.53%

69.71%

19.84%

0.50% 0.28%

1.94%2.22%

Admin Surveys & Mapping Cadastral Surveys Restitution Land reform SPI Auxiliary Serv.


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CHALLENGES

• Ensure implementation of land reform at a reasonable level

• Finalising restitution process in 2007/2008 • Managing risks inherent in the restitution ‘high drive’• Not much State land exists for redistributive or

restitution purposes (most of it is already settled)


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CHALLENGES

• High land prices • Some unco-operative sellers• Organised agriculture must demonstrate more

concrete commitment to land reform • Increasing the culture of respect for land rights of

vulnerable groups like labour tenants, occupiers and other farm dwellers

• Skilling of and technical support to land reform beneficiaries is critical for sustainable land & agrarian reform


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CONCLUSION• Significant progress has been made towards the

implementation of the land policy in South Africa• Additional resources are required to meet the 30%

target for 2014• The Land Summit (27-30 July 2005) will help in

identifying areas for policy reviews, such as the willing-buyer-willing-seller policy, international experience in land reform and the financing of land reform

• The role of Provincial departments of Agriculture, organised agriculture, NGO’s and the private sector, is critical for post-settlement support to land reform beneficiaries


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THANK YOU

Time for questions and answers

DEPARTMENT OF LAND AFFAIRS

Documents

state land

integrated land

housing land

sustainable land dispensation

ha of agricultural land

commercial agricultural

sustainable developmentland

total white