DEPARTMENT OF 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 Vision An equitable and sustainable land dispensation that promotes social and economic development Mission To provide access to land and to extend rights in land, with particular emphasis on the previously disadvantaged communities, within a well planned environment Accelarating Land Delivery for Sustainable Development

Accelarating Land Delivery for Sustainable Development POLICY CONTEXT Accelarating Land Delivery for Sustainable Development

Accelarating Land Delivery for Sustainable Development 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 Accelarating Land Delivery for Sustainable Development

Accelarating Land Delivery for Sustainable Development STRATEGIC CONTEXT (2005/2006) 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 Accelarating Land Delivery for Sustainable Development

Accelarating Land Delivery for Sustainable Development STRATEGIC CONTEXT (2005/2006) 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 Accelarating Land Delivery for Sustainable Development

Accelarating Land Delivery for Sustainable Development STRATEGIC CONTEXT (2005/2006) Governance Increase 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) Accelarating Land Delivery for Sustainable Development

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 Accelarating Land Delivery for Sustainable Development

Accelarating Land Delivery for Sustainable Development 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: Accelarating Land Delivery for Sustainable Development

Accelarating Land Delivery for Sustainable Development 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 Accelarating Land Delivery for Sustainable Development

Accelarating Land Delivery for Sustainable Development 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. Accelarating Land Delivery for Sustainable Development

Accelarating Land Delivery for Sustainable Development 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 Accelarating Land Delivery for Sustainable Development

Accelarating Land Delivery for Sustainable Development 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. Accelarating Land Delivery for Sustainable Development

All outstanding Urban claims are planned for settlement Restitution SETTLEMENT OF CLAIMS OVER THE MTEF PERIOD  PROVINCE 2005/2006 2006/2007 2007/2008   Urban Rural Eastern Cape 2,869 338 434 193 Free State and Northern Cape 1,536 269 268 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 Accelarating Land Delivery for Sustainable Development

Budget for the MTEF period up to 2007/2008 - Capital Province Total Rural Urban 2005/2006 2006/2007 2007/2008   Capital claims 1 2 3 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 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 OPTION I.T.O MTEF Accelarating Land Delivery for Sustainable Development

Accelarating Land Delivery for Sustainable Development

Accelarating Land Delivery for Sustainable Development RESTITUTION (CONT.) 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 Accelarating Land Delivery for Sustainable Development

Accelarating Land Delivery for Sustainable Development 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%) Accelarating Land Delivery for Sustainable Development

BUDGET ALLOCATION PER PROVINCE Accelarating Land Delivery for Sustainable Development

Accelarating Land Delivery for Sustainable Development 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. Accelarating Land Delivery for Sustainable Development

Meduim term output targets – Restitution 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 gazetted 18,239 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 settlement Alignment of restitution projects with municipal IDPs Collaboration with DoA and PDALA for implementation of CASP and MAFISA (ACS) March 2006  Collaborate agreements reached by December 2005 Accelarating Land Delivery for Sustainable Development

Econmic Classification 2005/06 MTEF per Programme Econmic Classification 2005/06 R’000 2006/07 2007/08 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 Accelarating Land Delivery for Sustainable Development

Accelarating Land Delivery for Sustainable Development 2005/06 MTEF per Programme Accelarating Land Delivery for Sustainable Development

Accelarating Land Delivery for Sustainable Development 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) Accelarating Land Delivery for Sustainable Development

Accelarating Land Delivery for Sustainable Development 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 Accelarating Land Delivery for Sustainable Development

Accelarating Land Delivery for Sustainable Development 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 Accelarating Land Delivery for Sustainable Development

THANK YOU Time for questions and answers Accelarating Land Delivery for Sustainable Development