The true value of land: it's not who owns it, but how it's used

IOL News

14-05-2025

The eThekwini Municipality intends to build a world-class Logistics Park in Clairwood, south of Durban. Clairwood was historically a residential area that has undergone significant industrial development.
Image: File
Land reform conversations should not be limited to who owns the land; they should also focus on how that land is used and whether it delivers meaningful benefits for the communities that fought to reclaim it.
Peter Setou, the Chief Executive of Vumelana Advisory Fund, says far greater attention needs to be paid to what happens after land has been transferred.
'Thankfully, there is growing recognition that land reform cannot be viewed in isolation from broader economic development. When communities gain access to land, that is only the beginning.
"The challenge and opportunity lie in ensuring that the land becomes a source of economic benefit, creates jobs, exposes communities to access markets and enables skills development,' Setou said.
The non-profit organisation established to help communities in the land reform programme put their land to productive use said resolving the land question is not only morally and politically right but also an economic imperative in a country that has gained the reputation of being ranked the most unequal society in the world by the World Bank.
It said with a staggering 41.9% of the local population swelling the ranks of the unemployed in the last quarter of last year, according to Stats SA's expanded definition of unemployment, which includes those discouraged from seeking work.
Setou said the increasingly uncertain geopolitical developments, the looming spectre of US-initiated debilitating trade wars, soaring tariffs and the possible termination of the African Growth and Opportunity Act (AGOA) which grants African nations duty-free access to the lucrative US market, adds credence not only for an accelerated land reform programme, but the deliberate enablement of rural economies and the empowerment of beneficiary communities.
He said this would enable them to make their land productive to ensure that they can effectively participate in commercial agriculture, eco-tourism and other broader economic areas within the land value chain.
'The potential of land ownership to slam the brakes on the scourge of unemployment and deepening levels of poverty has been acknowledged by the National Development Plan (NDP), which envisaged agriculture as the sector that has the potential to create close to 1 million new jobs by 2030.
"The attainment of this ambitious plan hinges on the implementation of tailored, post-settlement support programmes that can attract much-needed investment and on fostering skills transfer and development and ensuring financial sustainability of the land,' Setou said.
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The organisation said that whilst there has been criticism levelled at the pace of land reform, the pockets of achievement and progress made thus far prove that a successful land reform programme can be a catalyst for job creation and skills development.
'Through the partnerships we have facilitated between beneficiary communities and private sector investors, we have redefined the narrative of the land reform programme and provided a living testament of a resoundingly successful land reform outcome.
"We don't have to reinvent the wheel. We already have a winning formula that we can build upon to leverage the land reform programme into a formidable initiative that can generate positive and far-reaching social and economic benefits for everyone,' Setou said.
Meanwhile, last month, a Vodacom spokesperson told this publication that challenges they faced as mobile network operators (MNOs) in securing land for site builds are the lengthy period it takes to obtain approvals from municipalities.
Secondly, they said power upgrades on existing infrastructure to support new technologies are a challenge due to the long lead time of six to eight months.
'In addition, the supplier's insufficient power capacity to meet the required specifications for implementing the 3-phase for our technologies is a big test for the business. Lastly, bylaws, public participation and environmental requirements can impact the site acquisition process. For example, it can take up to 18 months to obtain site approvals.'
The company said its deep rural network acceleration programme is negatively affected by lengthy delays in site build approvals by municipalities and trusts that oversee communal land.
It said that when these delays occur, they prolong their efforts to bridge the digital divide in rural areas.
'Critically, the delays with local authorities in approving applications further hold up economic development in these areas, as the deployment of tech infrastructure can transform societies for the better and be a catalyst for economic growth and the alleviation of poverty.
"Our view is that the Spatial Planning and Land Use Management Act (SPLUMA) needs to be reviewed to cater for telecommunications network development,' Vodacom said.
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