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Johannesburg - The latest proposals on land reform will lead to disinvestment and pose a serious threat to food security, according to the Afrikaanse Handelsinstituut (AHi).
The AHi has taken note of the latest proposals on land reform by Rural Development and Land Reform Minister Gugile Nkwinti.
"The AHi understands the need for broadening of ownership and overcoming the legacies of the past. However, the latest proposal by the minister is just not feasible," said Christo van der Rheede, CEO of the AHi.
"It will certainly lead to disinvestment and as such poses a serious threat to food security."
"Farming is a business and requires huge input costs by farmers. Such input costs are usually financed by financial institutions."
He said farmers are also highly indebted and without security of tenure South African will lose thousands of commercial farmers who are the backbone of SA's domestic and export market.
The alternative, according to Van der Rheede, is to incentivise farmers who invest in training and mentoring of farmworkers and who assist emerging farmers with developing sustainable agricultural enterprises.
"Government must also assist farmers with subsidies in order to improve living conditions of farm workers and to increase salaries," said Van der Rheede.
"To expect of farmworkers to share in the losses and insecurities of farming will lead to even further impoverishment."
He said farmworkers seek a better salary and other monetary benefits in order to provide a better future for their children.
The AHi has appealed to government to engage constructively with role-players in the agricultural and related business sector to come up with workable and sustainable solutions.
"The current plan is just not workable and contradicts the outcomes related to land reform and broadening of ownership as outlined in the National Development Plan," he said.
- Fin24
The AHi has taken note of the latest proposals on land reform by Rural Development and Land Reform Minister Gugile Nkwinti.
"The AHi understands the need for broadening of ownership and overcoming the legacies of the past. However, the latest proposal by the minister is just not feasible," said Christo van der Rheede, CEO of the AHi.
"It will certainly lead to disinvestment and as such poses a serious threat to food security."
"Farming is a business and requires huge input costs by farmers. Such input costs are usually financed by financial institutions."
He said farmers are also highly indebted and without security of tenure South African will lose thousands of commercial farmers who are the backbone of SA's domestic and export market.
The alternative, according to Van der Rheede, is to incentivise farmers who invest in training and mentoring of farmworkers and who assist emerging farmers with developing sustainable agricultural enterprises.
"Government must also assist farmers with subsidies in order to improve living conditions of farm workers and to increase salaries," said Van der Rheede.
"To expect of farmworkers to share in the losses and insecurities of farming will lead to even further impoverishment."
He said farmworkers seek a better salary and other monetary benefits in order to provide a better future for their children.
The AHi has appealed to government to engage constructively with role-players in the agricultural and related business sector to come up with workable and sustainable solutions.
"The current plan is just not workable and contradicts the outcomes related to land reform and broadening of ownership as outlined in the National Development Plan," he said.
- Fin24
