Assessing the economic impact and legal standing of expropriation of land without compensation policy and the effects on farm investment of selected farmers in South Africa
- Authors: Buthelezi, Sithabiso
- Date: 2022-04
- Subjects: Land tenure , Economic impact analysis
- Language: English
- Type: Master's theses , text
- Identifier: http://hdl.handle.net/10948/57557 , vital:58073
- Description: South Africa’s agricultural sector is still labour- intensive and with South Africa’s high unemployment levels, this sector becomes crucial for employment creation. Moreover, the sector assists in eradicating poverty and ensuring food security. The African National Congress (ANC) has introduced the Draft Constitution Eighteenth Amendment Bill, 2019 in the National Assembly. The Minister of Public Works and Infrastructure issued a notice indicating the government’s intention to introduce the Expropriation Bill, 2020 in the National Assembly for debate. After these Bills were issued, there has been a debate in the public, including legal and economic scholars about the potential impact that these policy proposals will have on investment, specifically the agricultural industry. This treatise investigates the potential impact of expropriation of land without compensation on farm investment and assess the legality of the policy. The supporting theoretical literature in this treatise is the property rights theory, efficiency theories and transactional costs theory. The study used various cases and interpretations of legislation across different jurisdictions, to assess the legality of this policy. To test the impact of expropriation of land on farm investment, the study uses a survey collected from 22 farmers, registered with the Department of Agriculture, Land Reform and Rural Development (DALRRD) who responded to the request to participate. Once collected, the data were coded and analysed through the Stata statistical package. The results from descriptive statistics show that several independent variables that were included in the model had an influence on investment decisions. The study also found that the influence of title deeds differs between rural and semiurban dwellers. Semi-urban dwellers are likely to regard their property as insecure without title deeds, whereas rural dwellers indicated strong security of tenure despite staying on leased land. The study also found that the influence of collateral credit differs between small and commercial farmers. Some small farmers, who had collateral assets, did not use it when seeking credit or were denied even after using it. That is due to other factors such as cash flow and affordability. These factors, combined with the low value of collateral assets for small farmers prevent them from accessing additional credit. The results from the regression analysis revealed that certain independent variables have an influence on the dependent variable (farm investment). The regression vi | P a g e analysis results also prove that there is a significant positive correlation between the security of tenure and farm investment. However, the results from the respondents show that the proposed policy (expropriation of land without compensation) has not decreased their security of tenure as yet. The majority of respondents reported knowing about the policy, but still indicated that they intend to increase their farm investment in the coming three years. Therefore, there is no evidence that the proposed legislation had a negative impact on planned investment from a data analysis perspective. However, planned investments are decreased because of the current policy uncertainty. Those participants who indicated that they will decrease their investment, did so because they were not sure if their property will be targeted or not. This policy uncertainty is the source of disinvestment. Government should finalise this policy. It must be clear, indicate the circumstances under which someone’s property will be targeted. This is likely to put everyone at ease and be certain if their property will be expropriated or not. Government should be cautious of putting a policy that is not definite enough and leaves the final decisions to the court to determine the amount to be paid as compensation, as is currently the case. This court-determined compensation increases transactions costs and also creates uncertainty because one does not know how much are they entitled to until the final court determination. This contributes to policy uncertainty and procrastination on investment. , Thesis (MA) -- Faculty of Business and Economic Sciences, 2022
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- Date Issued: 2022-04
An evaluation of agricultural extension as a measure to improve broad-based Black economic empowerment in -the Eastern Cape Province: the case of orTambo District Municipality.
- Authors: Mambila, Lawrence Nzimeni
- Date: 2021-05
- Subjects: Food security , Agricultural extension work , Land tenure
- Language: English
- Type: Master's theses , text
- Identifier: http://hdl.handle.net/10353/21333 , vital:48486
- Description: This research evaluates the extent to which broad-based black economic empowerment has been achieved as a result of the implementation of different agricultural · extension programmes in Mthatha. The overall analysis and interpretation of the findings imply that to a significant extent, broad-based black economic empowerment has been_ achieved as a result of the implementation of different agricultural extension programmes in Mthatha. This is attributable to the fact that as much as some of the respondents disagreed, most of the - 97 sampled farmers were also ·found to agree that the implementation of different agricultural extension programmes in Mthatha has influenced increased farm ownership by black farmers increase in land ownership by black farmers, the development of farming skills of black farmers and increased embracement of agriculture, as a business. Some of the sampled 97 farmers also acknowledged that such agricultural extension programmes have influenced improvement in productivity and production to boost the socio-economic development of the communities in Mthatha, expansion of numerous employment opportunities .to catalyse increase in sources of income for communities in Mthatha and improvement in food security to leverage the economic independence of communities in Mthatha. However, despite some significant progress, findings imply that there are challenges that are marring the achievement of broad-based black economic empowerment. It emerged from the findings that challenges of implementation of agricultural extension programmes, as mechanisms for achieving broad-based black economic empowerment in Mthatha, arise from lack of financial capital, poor support from government, low motivation among the population and emergence of natural calamities such as stronger sunshine that causes draught. To address the above challenges, the survey explored the opinions of the participants on intervention measures that can be undertaken. The survey results indicated that measures used for ensuring that the implementation of agricultural extension programmes impact on the improvement of broad-based black economic empowerment encompass constant training and visit by agricultural specialists from Mthatha Department of Agriculture, the use of ordinary farmers as trainers, encouragement of farmers to form groups, as a basis for training community members and frequent intervention from the district, if needed. , Thesis (MCom) (Development Studies) -- University of Fort Hare, 2021
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- Date Issued: 2021-05