Irrational racial water quotas threaten R780 bn irrigation agriculture industry

12 July 2023

In reply to a DA parliamentary question, the Western Cape Department of Agriculture revealed the dire consequences expected from the imposition of race-based water allocations by the ANC National Government.

According to the draft regulations, published by Minister Senzo Mchunu on 19 May, black people must own 25%, 50%, or 70% of an agricultural enterprise, dependent on the size of the farm, for the renewal or allocation of water rights.

South Africa currently has 1.3 million ha of irrigation agriculture, at an estimated market value of R780 billion. In the Western Cape, 180 000 ha of fruit orchards and an additional 70 000 ha of secondary crops are being irrigated, providing the economic backbone for many of the smaller farming communities in the province.

While it is easy for the ANC to impose such quotas for cheap political point-scoring, there is no mention of where financing for this change of ownership is supposed to come from, and in practice farming enterprises that are crucial for food production will be forced to sell off parts of their farms to retain access to water.

This will also have a devastating effect on the thousands of farmworkers who work on irrigation farms, as a lack of access to water will mean that those jobs become redundant.

It is very likely that there is a queue of cadres waiting to invest in successful farms, as the average farmworker does not have access to the capital needed to invest, and will not benefit from a change in ownership.

The Western Cape Department of Agriculture has made it clear that it does not support the draft regulations, and has raised concerns on how it would even be achievable while adhering to the free-market principles embedded in the economy.

MPP Andricus van der Westhuizen: “The DA does not support racial quotas for the allocation of water rights. It is an impractical and unnecessary condition that will only serve to cripple our agricultural sector, a sector that is an immense source of employment in the Western Cape.

The ANC is showing that they care more about igniting racial tensions than the well-being of our residents, which will surely be impacted negatively should food producing farms be deprived of water. There is a complete disconnect from reality, and as with most ANC policies, it is racially motivated with no regard for the actual impact it will have on our people.”

Issued by Andricus van der Westhuizen, DA Western Cape Spokesperson on Agriculture, Environmental Affairs and Development Planning, 12 July 2023