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Relationship between the mode of land redistribution, tenure security and agricultural credit use in KwaZulu-Natal

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  • Andrew Graham
  • Mark AgDarroch

Abstract

Data collected from interviews with new landowners in KwaZulu-Natal in 1999 show that households on four government-assisted projects had less tenure security than households that acquired land via private transactions. Households in government-assisted projects also used less agricultural credit and had less liquidity and less wealth. The probability of households using agricultural credit increased with more secure tenure, more household wealth (number of durable goods), higher liquidity and higher levels of household education. It is recommended that more emphasis be placed on redistributing land through the private market and encouraging the creation of management committees or joint enterprises to utilise the land settled by large groups of beneficiaries. This would be a first step towards making tenure more secure, most notably in the government land reform projects. More secure tenure would improve the creditworthiness of emerging farmers, thereby creating incentives for investing in improvements and complementary inputs to raise agricultural performance.

Suggested Citation

  • Andrew Graham & Mark AgDarroch, 2001. "Relationship between the mode of land redistribution, tenure security and agricultural credit use in KwaZulu-Natal," Development Southern Africa, Taylor & Francis Journals, vol. 18(3), pages 295-308.
    • Handle: RePEc:taf:deveza:v:18:y:2001:i:3:p:295-308
    DOI: 10.1080/03768350120069965
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    Cited by:

    1. Anseeuw, Ward & Mathebula, Ntombifuthi, 2008. "Land Reform and Development: Evaluating South Africa’s Restitution and Redistribution Programmes," Reports 108281, University of Pretoria, Department of Agricultural Economics, Extension and Rural Development.
    2. Knight, SL & Lyne, MC, 2002. "Perceptions Of Farm Worker Equity-Share Schemes In South Africa," Agrekon, Agricultural Economics Association of South Africa (AEASA), vol. 41(4).

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