The Social Benefits of Land Redistribution in South Africa: Case Studies

This paper ascertains the feasibility of transferring land to potential beneficiary households. It looks at the cost and benefits of land transfer in three selected case studies in Mpumalanga. The results indicate that it is socially beneficial to transfer land in all the case studies. The net present values were all significant but sensitive to changes in product price, input prices and the discount rate. Although the analysis shows negative net present values for the state, the positive net present value for the potential beneficiaries and the rest of society far outweighs the cost to the state. The paper concludes that transfer of land to potential beneficiaries in the three case studies will significantly reduce the level of poverty among the potential beneficiaries and improve their livelihoods. If it is in the interest of the state to alleviate poverty, particularly in rural areas, then land reform should be taken seriously.