Parliament, Thursday, 6 August 2026 – The Portfolio Committee on Land Reform and Rural Development held a stakeholder dialogue at Parliament on Wednesday on the state of farm worker equity schemes and possible policy interventions.
The dialogue formed part of the committee’s consideration of a petition submitted by the Legal Resources Centre, Surplus People’s Project, Corruption Watch and the Support Centre for Land Change on behalf of beneficiaries of farm worker equity schemes.
The committee received submissions from beneficiaries, civil society organisations, researchers and agricultural stakeholders on the operation of the schemes and whether they have delivered meaningful economic benefits to farm workers. Beneficiaries and civil society organisations raised concerns about access to financial information, the payment of dividends, participation in decision-making, tenure security and the treatment of beneficiaries when they retire, leave employment or die.
Some presenters argued that beneficiaries had received little or no financial benefit despite substantial public investment in schemes established on their behalf. They called for greater transparency regarding ownership structures, financial performance and the use of public funds.
The committee’s earlier oversight work in the Western and Eastern Cape had identified similar concerns, including limited beneficiary participation, uncertainty about dividends, weak communication and inadequate monitoring and support. Civil society organisations proposed the development of a national corrective action plan. Their proposals included an independent review of the schemes, beneficiary-centred redress, audits or forensic investigations where warranted, stronger accountability mechanisms and continued parliamentary oversight.
Agricultural stakeholders, researchers and academics also drew attention to the commercial challenges faced by beneficiary-owned farming enterprises. These included high production costs, limited access to finance and working capital, restricted market access and insufficient technical and institutional support.
The committee heard that successful land reform required both sound governance and viable agricultural enterprises.
Beneficiaries needed meaningful rights and participation, but enterprises also required appropriate financial, technical and market support to remain sustainable. Presenters further questioned whether the existing policy and legislative framework adequately protected beneficiaries and regulated equity and strategic partnerships. The committee will consider whether legislative or policy changes are required after assessing all the submissions.
Committee Chairperson Mr Albert Mncwango noted with concern that organised agriculture and several commercial partners associated with the schemes were not represented at the dialogue. “Some stakeholders submitted apologies because of the harvesting season and other commitments. However, their participation is important because the committee must hear all affected parties before reaching conclusions or making recommendations,” said Mr Mncwango.
He said the engagement had highlighted the need to assess whether farm worker equity schemes were delivering meaningful ownership, economic participation and improved livelihoods. “Beneficiaries cannot be shareholders only on paper. They must understand their rights, have access to relevant financial information and participate meaningfully in decisions affecting enterprises established partly for their benefit,” said Mr Mncwango.
The committee has not yet reached conclusions on the allegations and proposals presented during the dialogue. It will continue to consider the submissions together with responses from the Minister of Land Reform and Rural Development, relevant provincial departments, the Land Bank, commercial partners and other affected stakeholders.
The committee will thereafter develop recommendations aimed at strengthening governance, improving accountability and ensuring that public investment in farm worker equity schemes produces lasting benefits for farm workers and their families.
ISSUED BY THE PARLIAMENTARY COMMUNICATION SERVICES ON BEHALF OF THE CHAIRPERSON OF THE PORTFOLIO COMMITTEE ON LAND REFORM AND RURAL DEVELOPMENT, MR ALBERT MNCWANGO.
For media inquiries or interviews with the Chairperson, please contact the Media Officer:
Name: Sureshinee Govender (Ms)
Cell: 081 704 1109
E-mail: sgovender@parliament.gov.za

