The issue of awarding low-cost title deeds rather than expropriating communal land has become a big land-reform talking point. And the chairman of Bank Zero, Michael Jordaan, believes awarding title deeds to those living on communal/informal land is the best way forward.
Jordaan recently argued that land reform is a vital economic and political issue in South Africa. And by awarding title deeds, rather than expropriating land, you instantly make residents property owners, reports Daily Investor.
LAND REFORM THROUGH TITLE DEEDS
Let’s not forget that Michael Jordaan is one of South Africa’s most respected business leaders. He served as FNB’s CEO during the bank’s heyday from 2004 to 2013. He served as the bank’s chief executive, then became a venture capitalist and helped fund top brands like Rain, Bank Zero and more …
Jordaan believes land is important for livelihoods and food security for the country. And it represents a symbolic sense of pride in the people who possess title deeds. “Most of the black population was removed from their land and confined to homelands because of Apartheid. Therefore, this has removed black South Africans from many economic opportunities,” says Jordaan.
AWARD TITLE DEEDS TO MILLIONS
Perhaps controversially, Jordaan wants to grant legal title deeds to millions of families who live freely on land that, notionally, does not belong to them, reports Daily Investor. Nearly 17-million people reside communally on 13% of South Africa’s land that is held in trust by tribal authorities. “Allocating title deeds to these subsistence farmers would turn rural dwellers into property owners,” Jordaan says.
Moreover, doing so would see owners leverage development loans on these farms and unlock massive capital growth potential. “In one fell swoop, a third of our citizens would build wealth through property appreciation. They could make changes and improvements to their properties without the threat of their living rights being arbitrarily taken away,” insists Jordaan.
AFRICAN PRECEDENT ALREADY SET
Apart from tribal land, other aspects of title deeds can be used to address the 5-million South Africans living in townships/informal settlements. “While there may be a need to compensate private landowners, giving away titles in informal settlements promotes investment, access to credit and socio-economic integration,” Jordaan says.
In Tanzania, for example, government was able to grant 200 000 titles for unplanned settlements in Dar es Salaam. Likewise, Rwanda employed a low-cost approach to deliver 6.7-million titles in less than three years. In South Africa, land reform in informal settlements will be much easier because the land is primarily state-owned.
“We don’t need to wait until everything is perfect. Let’s get the Department of Human Settlements (DHS) going with a massive title deeds project. It is completely possible for 23-million South Africans to own the land that they live on,” concludes Jordaan.
But what do you think? Is land reform in South Africa as easy as handing out low-cost title deeds in tribal and informal settlements? Be sure to let us know your thoughts in the comments section below …
