For some time, we have talked about South Africa’s two agricultures: one that is commercially orientated and white, and one that is resource-poor and black, consisting of smallholders. The country’s history largely explains these disparities, but inefficiencies in land reform have compounded them. We now have an opportunity to flick the switch, building an inclusive, just agricultural sector while boosting jobs and the economy.
Until now, the issue has been one of ownership. The government has acquired land on the open market over the years, but hasn’t successfully transferred it, with title deeds, to deserving black farmers. Farmers have typically received short-term leases, which hindered their agricultural possibilities. This is changing. The government is now releasing state land with title deeds and so ushering in a period of change that may bring greater shared prosperity.
Speaking in Stutterheim in the Eastern Cape last week, President Cyril Ramaphosa underscored the point that state-owned land would be transferred with title deeds.
“The growth we want is inclusive,” he said. “This requires affordable finance, partnerships with organised agriculture and access to land.”
This highlights the message the president delivered in June, when his budget vote speech for the presidency carried vital messages for the long-term growth of South African agriculture.
At the time, Ramaphosa noted how access to productive land is central to job creation and poverty reduction, pointing out that the government has acquired about 2.5-million hectares of land under its proactive land acquisition strategy programme.
The problem, he said, is that this land had largely been leased to land reform beneficiaries on a short-term basis, “which limits their ability to borrow money, invest in the land, grow agricultural production and contribute to the rural economy”.
In all of this, Ramaphosa is correct. The lack of title deeds has been the major constraint to inclusive growth in South African agriculture.
To turn the tide and “revitalise rural economies, to strengthen land rights and support the inclusion of black farmers in commercial agriculture”, the president said the government has embarked on a “concerted programme” to release land to deserving beneficiaries by converting agricultural leases to title deeds.
With the president signalling the start of that title deeds release process, we may now begin to see some positive action to develop the sector.
Land for jobs
This step is fundamental to achieving the goals outlined in the National Development Plan (NDP) and the agriculture & agroprocessing master plan. Both highlight the sector’s potential to grow and create jobs. In fact, the NDP indicates that the sector and its value chain could create close to 1-million jobs by 2030.
To have this impact on job creation, it’s essential for the government to strengthen land rights and allocate the land on its books to deserving beneficiaries. South Africa’s primary agriculture sector has delivered jobs, from 718,000 at the end of 2012, when the NDP was published, to 960,000 in the first quarter of 2026 — growth of 242,000 jobs. The sector’s value chain also created employment during this period.
These gains were far below the nearly 1-million jobs the NDP envisaged in the sector and its value chain. One constraint was the slow progress in releasing land with title deeds. Now that the president has directed the release of this land with title deeds and the department of rural development & land reform has heeded his call, we see greater opportunities for growth and job creation in the sector.
Releasing the land will be a powerful step towards fostering inclusive growth in agriculture. This land is also key to ensuring we finally make progress in implementing the agriculture & agroprocessing master plan. Significantly, organised agriculture, labour and agribusinesses, which helped draft the master plan, will continue to play a role in encouraging inclusive growth in the sector.
Agriculture remains one of our economic sectors with huge potential for growth and job creation. The president’s important step to strengthen land rights is key to realising this vision and supporting rural economies. Significantly, it also signals that property rights are intact in South Africa and that investment in farming is protected.
Sihlobo is the presidential envoy on agriculture and land and the chief economist of the Agricultural Business Chamber of South Africa
