Calls for Urgent Action on Farmworker Equity Schemes

The Portfolio Committee on Land Reform and Rural Development held a successful stakeholder dialogue this week at Parliament on the State of Farmworkers Equity Schemes in South Africa: Policy Implications and Possible Interventions to address complaints raised in the Farmworker Equity Schemes Petitions.

The committee received extensive submissions from beneficiaries, civil society organisations, researchers and agricultural stakeholders regarding the status of farmworker equity schemes in South Africa and their impact on beneficiaries.

The stakeholder dialogue formed part of the committee’s ongoing processes to consider a petition received from a consortium of civil society organisations (including the Legal Resources Centre, Surplus People’s Project, Corruption Watch and Support Centre for Land Change) acting on behalf of Farmworker Equity Schemes beneficiaries and members across South Africa.

Stakeholders presented evidence highlighting concerns relating to beneficiary rights, governance failures, access to information, financial accountability, tenure security and the management of public investments made through farm worker equity schemes.

The Chairperson of the committee, Mr Albert Mncwango, said: “One worrying factor was the absence of organised agriculture and commercial farmer partners to equity schemes. Although invited, they did not attend with some submitting apologies related to harvest season and other commitments.”

Presenters argued that many beneficiaries have received little or no meaningful financial benefit despite substantial public funding invested in schemes established on their behalf. Concerns were raised about dividend payments, access to financial records, uncertainty regarding beneficiary rights after retirement or death, and the exclusion of beneficiaries from important decision-making processes.

Civil society organisations called for the development of a National Corrective Action Plan that would include:

• An independent review of all farm worker equity schemes;
• Beneficiary-centred redress processes;
• Independent audits and forensic investigations where necessary;
• Stronger accountability measures; and
• Ongoing parliamentary oversight until corrective actions have been implemented.

Some of the agricultural stakeholders, experts and academics present at the dialogue highlighted the practical challenges facing beneficiary-owned farming enterprises, including high production costs, limited access to finance, working capital constraints, and restricted market access. They stressed that land reform beneficiaries require ongoing technical, financial, and institutional support to succeed in a highly competitive agricultural environment.

Another critical consideration for lawmakers is whether the existing legislative instruments for land reform and agricultural development were adequate to meet the challenges. A strong case was made for legislative review, including protections for equity and strategic partnerships.

The committee acknowledged the significant concerns raised during the meeting and noted the importance of hearing directly from beneficiaries and stakeholders affected by these schemes. Members emphasised the need to ensure that land reform interventions achieve their intended objectives of meaningful ownership, economic participation and improved livelihoods for farm workers and their families.

The committee will, in the coming week, continue to consider the submissions and responses from the Minister of Land Reform and Rural Development, the provincial departments of agriculture and the Land Bank. Following this process, it will develop its recommendations to strengthen accountability, improve implementation and ensure that beneficiaries derive lasting benefits from farm worker equity schemes.

Per Kind Favour of APO

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