South Africa: Why Water Rights Aren't Enough to Fix South Africa's Deeply Unequal Farming Sector

South Africa's commercial farming sector remains deeply unequal, rooted in the legacy of slavery, colonialism, and apartheid. Despite Black South Africans constituting over 80% of the population, they own a disproportionately small number of commercial farms. During apartheid, Black farmers were barred by discriminatory land and water laws from owning productive farmland and accessing irrigation water or commercial agricultural markets.

Many were forcibly relocated to overcrowded areas called Bantustans, which lacked infrastructure and opportunities for agricultural success.

Since the end of apartheid in 1994, South Africa has tried to rectify this imbalance by granting water licenses to Black farmers and encouraging them to collaborate with established commercial farmers, primarily white. In these joint ventures, Black farmers typically provide the land and water, while commercial farmers contribute financial resources, expertise, equipment, and market access.

The objective is for both parties to benefit: commercial farmers maintain productivity, while Black farmers receive the necessary support to establish their own farming businesses.

Researchers examined whether these partnerships are genuinely enabling Black farmers to gain equitable access to water and build thriving farming enterprises. Through interviews with 34 commercial and emerging farmers in the Great Fish and Lower Sundays River area of the Eastern Cape, which hosts numerous land reform projects and prominent commercial citrus farms, the research team aimed to understand the connection between water access and the broader factors needed for successful commercial farming, such as finance, farming skills, infrastructure, market access, and decision-making power.

The study found that while many emerging farmers gained access to irrigation infrastructure, such as canals, pumps, and water supplied from nearby dams, this was often insufficient to establish profitable businesses. This was primarily due to the farmers' continued dependence on commercial partners for finance, technical expertise, and market access.

The research indicates that merely redistributing water is not enough; it must be accompanied by providing emerging farmers with finance, equipment, infrastructure, training, and a genuine say in the management of farming businesses.

Commercial farmers highlighted the complexity of running a farming business, citing challenges such as audits to ensure compliance with laws and standards, rising labor costs, and steep increases in diesel prices. They also reported that fluctuating international prices and the aftermath of the Covid-19 pandemic significantly impacted their export markets.

Commercial farmers explained that managing a profitable business and staying up-to-date with technological advancements consumed much of their time and resources, leaving little room to invest in building the independence of emerging farmers.

Emerging farmers often had limited influence over the operational aspects of the farming business, with commercial partners frequently controlling financial decisions, production planning, marketing, and investment. Consequently, many emerging farmers faced substantial water bills before they could harvest or sell any crops, sometimes amounting to R750,000 (US$46,300).

Additionally, they frequently lacked the necessary irrigation infrastructure and machinery to utilize the water productively, often having to rent equipment from commercial partners, which increased their costs and dependency.