Monday, October 6, 2014

NEWS: Western Cape celebrates 62% land reform success rate

An external evaluation process has shown that the Western Cape enjoyed a 62% success rate with the running of its 246 agricultural land reform projects in the province. Of the 38% failed projects, 24% was experiencing challenges while 14% failed completely.

This information was shared by Mr Mogale Sebopetsa, (acting) chief director: Farmer Support and Development at the Western Cape Department of Agriculture. He delivered a Leader’s Angle presentation at the University of Stellenbosch Business School in Bellville with his colleague, Dr Dirk Troskie, director: Business Planning and Strategy at the department.

The province attributes its success in the main to partnering with industry organisations to ensure effective support to land reform projects. “If we didn’t partner with the agricultural sector, we would not have achieved this success,” said Sebopetsa. “Government cannot farm. It is through the mentorship and other support from industry that those involved in land reform projects are able to make notable progress.”

The five indicators that were used for the evaluation were:
•           Do farmers comply with tax and labour laws?
•           Do they have updated business plans?
•           Is there a secure market for the produce?
•           Do they keep records?
•           Does the business turnover allow for re-investment?

According to Sebopetsa, the highest scorings occurred on average in the projects’ ability to service debt, their access to markets and anticipated future growth.

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