Evaluation of the financial performance of farm worker equity-share shemes with reference to Vuki Farm in the Overberg District Municipality of Western Cape

Abstract

The struggle for land ownership in South Africa continues despite the successful democratic dispensation. Among other apartheid legacies, the new South Africa inherited a highly skewed land ownership pattern based on racial inequalities of the apartheid regimes stemming from the colonial era. The new government introduced a comprehensive land reform programme, aimed at a non-racial distribution of land. The land reform programme consists of three subprogrammes namely redistribution, restitution and land tenure reform. Equity - share schemes are types of land reform, through which previously disadvantaged and landless people can pool their resources to engage in agricultural and other land-related production activities with white commercial farmers, corporations or sectors of government. A critical question has centered on whether equity-share schemes can- and - do really result in redistribution of power and resources. Most of the research work already done on equityshare schemes focused much on investigating their social and political aspects, leaving much attention on their financial performance. This research investigated the financial performance of equity-share schemes using a recognized set of financial indicators. As an additional input to the research, the study investigated perceptions of the scheme’s general performance based on empowerment of farm workers, gender equity, decision making or power relations and tenure security. A combination of both quantitative and qualitative methodologies was used to answer key questions of the study. These involved obtaining quantitative data from balance sheets and income statements as well as holding meetings with management committee and beneficiaries.