The Perils Of Land Reform

Uncertainty over the future of property rights in South Africa could deter investment.

- Sam Mkokeli

The clay-rich soil of South Africa’s Western Cape province has produced some award-winning pinot noirs and sauvignon blancs, but Nokwanda Matebese is certain that without a patch of dirt to call her own, she and her relatives will never have a taste of prosperity. “I work hard for my three children and have to send money to my mother and extended family,” says Matebese, 35. A seasonal worker in the area’s vineyards, she lives in a one-room shanty fashioned from corrugated steel in Kayamandi township, an impoverished settlement on the outskirts of Stellenbosch. “Without owning land or property, it will forever be difficult for myself and my family to move up the economic ladder—for example, get a loan to start a business.”

South Africa’s Natives Land Act of 1913 stripped most black people of the right to own property, a policy reinforced by apartheid, the decades-long system of racial segregation. More than 20 years after white minority rule ended, the African National Congress has made limited progress in righting historical wrongs. Whites make up less than 8 percent of the population, but according to a 2016 audit by farm lobby group Agri SA, they own almost three-quarters of agricultural land.

With national elections looming in May and the economy in the doldrums, the ANC leadership is under pressure to speed up wealth distribution. For the first time since ascending to power in 1994, the party is at risk of losing its national majority, with a recent poll by the South African Institute of Race Relations indicating its support has dropped to a record low.