Government hoarding land twice the size of Los Angeles in South Africa

The government has acquired land double the size of the Los Angeles metropolitan area through the land redistribution programme, which has still not been formally transferred to black farmers.

Wandile Sihlobo, Chief Economist of the Agricultural Business Chamber of South Africa (Agbiz), told BizNews that this needs to start happening to grow the sector. 

Commenting on the confidence of the agricultural sector in South Africa, Sihlobo said that despite a recent dip, sentiment in the country’s farming and agribusiness sectors remains relatively positive. 

He explained that while the index declined by five points to 65 in the second quarter of 2025, it remains above the neutral 50-point mark. 

The index, which Agbiz has compiled since the early 2000s, offers insights into the sector’s direction of growth and fixed investment.

Sihlobo attributed the recent dip in confidence to a number of concerns shared by agribusinesses and commercial farmers surveyed across the country. 

“The consistent thing coming out from all of them is concern about geopolitics and the trade environment,” he said.

Domestically, issues such as foot-and-mouth disease and broader biosecurity risks, including both plant and animal health, are pressing challenges. 

Long-standing issues like failing municipal services, crime, and deteriorating infrastructure, such as ports, also weigh heavily on sentiment. 

Land reform also remains one of the most contentious and misunderstood issues in agriculture. 

Sihlobo pointed out that land reform in South Africa continues to operate under market principles, with the state purchasing land for redistribution. 

“One myth is that no land reform is taking place. Another is that white farmers own 80% of the land, it’s actually closer to 50%,” he said. 

“Black farmers exist in the commercial sector, but their share of output is small, at around 10%, largely due to the systemic issues they face, including insecure land rights and lack of support,” he added. 

It’s not about taking from one and giving to another

Sihlobo pointed out that the country didn’t require a new law—ie, the Expropriation Act—to acquire and redistribute land to certain groups. 

He highlighted that the government has amassed massive amounts of land, which it has failed to redistribute. 

“The government has acquired about 2.5 million hectares under the land redistribution programme, but much of this land has not been formally transferred to black farmers,” he said. 

To put the size of this amount of land into perspective, 2.5 million hectares works out to 25,000 square kilometres.

According to the US Census Bureau, the Los Angeles-Long Beach metropolitan area, has a total area of 4,850 square miles (12,561 sq km).

This means the land acquired under the land redistribution programme is around twice the size of the Los Angeles metropolitan area.

“People don’t realise how big that is,” he said. “We produce all our grain and oilseeds on 4.5 million hectares, so 2.5 million is more than half of that.”

“That land has not been transferred to black South Africans with title deeds. That process must happen,” he said.

However, he added that it must be through proper beneficiary selection, and it must come with title deeds, blended finance, and the necessary training support. 

He argued that land reform must serve both restorative justice and economic growth, especially in a country grappling with high poverty, unemployment, and weak growth.

Sihlobo also addressed misconceptions surrounding the Expropriation Act and the debate on expropriation without compensation. 

He distinguished between the expropriation debate that emerged in 2017, when the ANC proposed amending section 25 of the Constitution, and the new Expropriation Act, which aligns the existing 1970s legislation with the Constitution. 

“There is a fear that expropriation will be widespread, but the Act only allows for nil compensation in limited cases, and the courts, not politicians, must decide that,” he said.

While he acknowledged the fears of landowners and farmers, Sihlobo argued that the safeguards in place should reassure them. 

“Farmers have invested heavily. As we speak today, farm debt is over R220 billion. No one wants to undermine that investment.”

SA agriculture is thriving

Despite challenges, Sihlobo maintains that South African agriculture is not under siege but is, in fact, thriving. 

Since 1994, the sector has more than doubled in both value and volume terms. “There are more people working in agriculture today than in 1994, despite advances in technology,” he said. 

Improved seed varieties and genetics, and expanding export markets have been the two key drivers of this growth. 

He stressed the need to rekindle the momentum of the early 2000s to 2015, when the government played an active role in opening new markets.

Looking ahead, he sees great potential. “The gross value added of agriculture could expand by 30% over the next five to ten years,” he noted. 

“And we still believe the sector and its value chain can create up to a million jobs, as was outlined in the National Development Plan.” 

However, he emphasised that this hinges on unlocking the 2.5 million hectares the state currently holds. 

To achieve inclusive growth, Sihlobo urged policymakers to ensure that transformation is not seen as a zero-sum game. 

“We must grow the agricultural pie. It’s not about taking from one and giving to another, it’s about building a bigger, more inclusive sector,” he said.