Land and Agrarian Development in South Africa

Land ownership and control historically underpinned patterns of unequal development in South Africa, with dispossession and the migrant labour economy being the basis for agrarian dualism and economic inequality. Yet land reform – the redistribution of white-owned commercial farms to black smallholders – has been a largely unfulfilled political promise during the first 25 years of democratic rule. South Africa’s negotiated transition produced a constitution that provides certain protections to property rights while simultaneously mandating land reforms through land redistribution, tenure reform and restitution, including via expropriation. Initially conceived as a pro-poor programme, land reform was reinvented over time, reflecting wider economic policy shifts, towards the creation of a small prosperous segment of black commercial farmers, thereby deracializing the dominant sector without restructuring landholdings and the agrarian economy. The shortcomings of land reform not only perpetuate inequalities inherited from colonialism and apartheid, but have also led to the production of new problems. We point to three recent and ongoing dynamics driving new and aggravated forms of land inequality: financialization, with the entry of new financial sector actors into corporate landholding, property portfolios and speculation; land concentration driven both by market forces and elite capture of public resources and corruption in land reforms; and land commodification driven by powerful corporate, political and traditional elites combining to expand large agricultural and mining investments in communal areas.