South Africa outperformed the rest of Africa, as well as its upper middle-income economy peers, in a World Bank survey of trade efficiency, improving its previous performance despite a general slowdown in trade logistics performance in the wake of the global recession.

According to the World Bank's "Connecting to Compete 2012" report, released on Tuesday, countries that pursued aggressive reforms continued to improve their trade logistics performance, despite the global slowdown in progress over the last two years.

South Africa was among a group of countries - including Chile, China, India, Morocco, Turkey and the US - that improved their previous performance, according to the study, which is based on a comprehensive world survey of international freight forwarders and express carriers.

Top performer in Africa, BRICS

In the upper-middle income country category, South Africa was the top performer, followed by China and Turkey. South Africa's logistics performance indicators gave the country a score of 3.67, lifting it up to 23rd place overall out of 155 economies surveyed - up from a ranking of 28 in 2010.

China, ranked 26th, followed closest among South Africa's BRICS partners, followed by Brazil at 45th, India at 46th, and Russia at 95th.

Tunisia was the next best African performer, ranked 41st, followed by Morocco (50th), Egypt (57th), Benin (67th) and Botswana (68th). Economic powerhouse Nigeria placed 121st.

"Infrastructure stands out as the chief driver of progress in top performers, followed by improvements in logistics services, and customs and border management," Mona Haddad, sector manager of the World Bank's international trade department, said in a statement.

"All top performers show strong cooperation between the public and private sectors, and a comprehensive approach in the development of services, infrastructure and efficient logistics."

Role in reducing food prices, carbon footprint

At a time where food prices are at historic highs, the survey found that logistics is important for food security.

"Transport and logistics directly affect the price and local availability of food through the performance and resilience of food chains, especially in African and Middle Eastern countries that depend heavily on food imports," the World Bank said.

In developing countries, particularly landlocked and poor ones, transport and logistics account for 20-60 percent of delivered food prices, according to the survey. "For instance, they make up 48 percent of the cost of US corn imported by Nicaragua."

The survey, which for the first time included environmental indicators, also found that green logistics is quickly gaining prominence in high-income and emerging economies - "a positive development, since logistics and freight-related activities may account for up to 15 percent of human carbon dioxide emissions".

"Trade logistics is key to economic competitiveness, growth, and poverty reduction," said Otaviano Canuto, World Bank vice-president for poverty reduction and economic management.

"Unfortunately, the logistics gap between rich and poor countries continues, and the convergence trend experienced between 2007 and 2010 has stalled as events like the global recession and the European debt crisis shifted attention away from logistics reform."

According to the World Bank, the way forward is clearly demonstrated by the top performers in the 2012 survey: "Only by fostering cooperation between the public and private sectors, and by considering the impact of all agencies on the supply chain, can a country create sustainable improvements in its logistical capabilities."

SAinfo reporter

First-world infrastructure plus a vibrant emerging market equals huge investment potential!

If African leaders can deliver on jobs, justice and equity, they will turn Africa's population boom into a demographic dividend and ensure that the continent's massive growth promise is fulfilled - if not, they will court disaster, according to the 2012 Africa Progress Report.

The report is the flagship publication of the Africa Progress Panel, a group of distinguished individuals dedicated to encouraging progress in Africa.

Released during the World Economic Forum on Africa in Addis Ababa, Ethiopia on Friday, the report warns that the continent's strong economic growth trajectory - the region is forecast to grow at over 5 percent over the next two years - is at risk because of rising inequality and "the marginalisation of whole sections of society".

"Disparities in basic life-chances – for health, education and participation in society - are preventing millions of Africans from realizing their potential, holding back social and economic progress in the process," former UN secretary-general Kofi Annan, the panel's chair, states in the report.

The report notes that Africa has seven of the world's fastest-growing economies, with 70% of continent's population living in countries that have averaged economic growth rates in excess of 4 percent over the past decade.

However, it also records, most countries are not on track to achieve the UN's Millennium Development Goals by 2015, flagging slow progress in areas such as child nutrition, child survival, maternal health and education.

'Profound demographic shift under way'

The need for equitable growth is all the more critical, the report states, because of Africa's "profound demographic shift", which will see the continent's population double over the next three decades and continue to rise into the second half of the twenty-first century.

The report highlights that today there are 70-million more Africans aged under 14 than there were a decade ago. Over the next decade, that number will rise by another 76-million.

The report calls for a "relentless focus" by policymakers on jobs, justice and equity to ensure sustainable, shared growth that benefits all Africans. Failure to generate equitable growth could result in "a demographic disaster marked by rising levels of youth employment, social dislocation and hunger".

Africa's governments and development partners must urgently draw up plans for a big push towards the 2015 Millennium Development Goals, the report says.

Challenges highlighted

Challenges highlighted as demanding urgent action from governments include:

Youth employment: Africa's youth population (15-24 year olds) will rise from 133-million at the start of the century to 246-million by 2020 - requiring another 74-million jobs over the next decade simply to prevent youth unemployment from rising. The report sets out an agenda for raising skills and generating rural jobs through off-farm employment.

Smallholder agriculture: In the absence of a concerted effort to raise the productivity of smallholder agriculture, the report cautions that Africa will remain vulnerable to food security crises. It identifies "land grabs" by foreign investors and speculators as a major threat and urges African government to consider stronger regulation.

Education: The report calls for urgent action to tackle what it describes as a "twin crisis" in access and learning. With 30-million children out of school and many of those in school failing to master basic literacy, Africa is ill-equipped to generate jobs and take its place in a knowledge-based global economy. The report calls for a strengthened focus on education and the creation of appropriate funding mechanisms.

Global economic governance and aid: The report notes that Africa still has a weak voice in areas - such as trade, finance and development assistance - that have a critical bearing on its citizens. The report adds that aid remains vitally important and that African governments and development partners must deliver on their commitments in a transparent and accountable way.

Growth 'not benefiting enough people'

"Africa is rising and African economies are growing faster than those of almost any other region in the world," Caroline Kende-Robb, the panel's executive director, said in a statement on Friday.

"However, the current pattern of trickle-down growth is not benefiting enough people. Indeed, benefits measured by poverty reduction, maternal health and childhood survival fall far short of what Africans have a right to expect."

The Africa Progress Report "calls for renewed focus on jobs, justice and equity to ensure that Africa’s impressive economic growth is translated into shared growth for all Africans," Kende-Robb said.

Annan said the overall message of this year's report was positive, noting that Africa was on its way to becoming "a preferred investment destination, a potential pole of global growth, and a place of immense innovation and creativity.

"But there is also a long way to go - and Africa's governments must as a matter of urgency turn their attention to those who are being left behind.

"I believe Africa and its leaders can rise to this challenge," Annan said. "If they do, Africa will become more prosperous, stable and equitable. This is a prize which we all, wherever we live, will share."

SAinfo reporter

South African President Jacob Zuma has joined international leaders in congratulating Francois Hollande following the socialist party leader's victory in France's presidential runoff elections on Sunday.

Hollande won an estimated 51.05 percent of the votes, beating Sarkozy's 48.95 percent, according to initial results.

"We would like to take this opportunity to extend our congratulations to Mr Hollande and the people of France for a successful election," Zuma said in a statement on Sunday evening.

He said South Africa and France enjoyed strong bilateral political and trade relations, and hoped that the two countries would continue to build on them under the new leadership.

Swing to the left

The win ends 17 years of conservative leadership in France and marks a swing to the left that will mean key policy changes at the heart of Europe.

Sarkozy, swamped by voters' anger at his failure to rein in rife unemployment, became Europe's 11th leader to be swept out by the eurozone debt crisis.

He conceded defeat minutes after the polls closed, and addressed his supporters at the headquarters of his party.

"France has a new president; it's a democratic, republican choice," Sarkozy said. "Francois Hollande is the president of France and must be respected. I just spoke to him on the telephone, and I want to wish him good luck amid the ordeals.

"It will be difficult, but I wish with all my heart that France, our country which brings us together, manages to get through these ordeals, because there is something much bigger than us; it's our country, it's our homeland," Sarkozy said.

'Heavy challenges await us'

Hollande, who will be France's first socialist president since Francois Mitterrand left office in 1995, spoke of bringing hope and change to France.

"The first duty of the President of the Republic is to bring together and link all citizens to communal action so as to face up to the challenges awaiting us, and there are many and they are heavy," Hollande said.

"First of all, to increase production in order to get the country out of the crisis, reducing our deficit in order to control debt, the preservation of our social model to ensure to all the same equal access to public services."

Hollande vowed to rework a deal that called on European governments to cut their debt.

He also promised to raise taxes on big corporations and people earning more than a million euros a year.

France plays an important role in various multilateral forums, including the European Union, United Nations Security Council, G20, and the International Monetary Fund.

Source: BuaNews-Xinhua

Inward investment into Africa has more than doubled over the last decade as investor perceptions of the continent have begun to shift, but a significant perception gap still remains to be closed, according to Ernst & Young's second African Attractiveness Survey, released last week.

According to the survey, growing optimism and confidence among international investors saw new foreign direct investment (FDI) projects into Africa growing from 339 in 2003 to 857 in 2011 - with new project numbers in 2011 almost back up to the levels last seen in 2008, before the global financial crisis hit.

The mind-shift has been shared, and to some extent led, by African investors themselves, with intra-African investment increasing exponentially, from 27 new FDI projects in 2003 to 145 in 2011 - 17% of all new FDI projects on the continent last year.

Sixty percent of the 505 global executives surveyed by Ernst & Young said perceptions of Africa as a business location had improved over past three years, with three-quarters of them predicting further improvements in the continent's attractiveness over the next three years.

Ernst & Young forecast overall African gross domestic product (GDP) growth of between 4% and 5% per annum over the next decade, with FDI into Africa reaching US$150-billion by 2015.

Perception gap 'remains to be closed'

While the survey paints an overall positive picture of growing confidence in Africa's prospects, the results also highlight a stark difference in perception between CEOs who already have a business presence in Africa and those who do not.

"Of those who believe that Africa's growth prospects in the near term are significantly positive, half have a dedicated Africa strategy in place, and 92% have an active business presence on the continent," Ernst & Young said in a statement last week.

The perception gap is reflected in the fact that, despite the positive African growth story - including strong GDP and FDI growth forecasts for the next decade - "the continent still only attracted 5.5% of global FDI projects in 2011.

"While this is up from 4.5% last year and is, in fact, the highest proportion of global FDI that Africa has ever received, reservations remain among those who have not yet invested into the continent."

Ajen Sita, Ernst & Young managing partner for Africa, noted that the continent as a whole was still attracting fewer FDI projects than India and far fewer than China.

"There is still clearly work to be done by Africans - government and private sector alike - to better articulate and 'sell' the growth story and investment opportunity for foreign investors," Sita said.

Intra-African investment leads the way

A key highlight of Erns & Young's report is the growing self-belief and commitment by Africans to move the continent forward, reflected in the substantial growth of intra-African investment.

Between 2003 and 2011, according to the survey, there has been 23% annual compound growth in intra-African investment into new FDI projects. This growth has been accelerating, with the growth rate up by 42% since 2007.

This growth is being led "by the respective regional powerhouses of Kenya, Nigeria and South Africa," Ernst & Young said.

"All three of these African economies are ranked among the top 20 investors into the rest of the continent between 2003 and 20011, and since 2007 the growth rate in investment from Kenya, Nigeria and South Africa has been 78%, 73% and 65% respectively.

Sita said there had been "a radical shift in mindset and positioning over the last decade, with Africans themselves increasingly leading from the front by providing African solutions to Africa's challenges.

"Clearly work still remains to be done, but pushing ahead with key initiatives such as regional integration and investment in infrastructure will ensure that Africa remains on a sustainable growth curve."

Increasing growth from developing countries

On the sources of Africa's inward investment, the survey found that this came from across the world, with strong growth in project numbers from "rapid-growth" (or developing) and developed markets alike.

Among the former, India has led the way as the fourth-largest FDI investor by number of projects since 2003, with annual compound growth of 46% since 2007.

China and the United Arab Emirates remain prominent too, but there is high growth in investment from an increasingly diverse range of other developing countries, with South Korea, Saudi Arabia and Turkey among those at the forefront.

"At the same time, and despite the challenges they face, there has also been robust growth in investment into Africa from many developed markets," Ernst & Young said. "In the period from 2007 to 2011, UK project numbers have been up 27%, with the US and Germany also both increasing by 21%."

According to Mark Otty, Ernst & Young managing partner for Europe, Middle East, India and Africa, the competition for global FDI is intensifying, with developing countries "not only dominating investor attention and capital flows, but also playing an increasingly strategic role in defining the global economic agenda.

"African countries must position themselves appropriately in this shifting landscape to attract a greater proportion of the investment that will accelerate growth and development," he said.

Moving beyond dependence on commodities

In addition, according to Ernst & Young, the growing diversification of FDI identified as a key trend in last year's survey has continued this year "with even greater levels of investment into less capital-intensive sectors".

This has resulted in a growing number of FDI projects in manufacturing, business services and sales, marketing and support, highlighting a shift away from the extractive commodity-based activities on which Africa has historically been dependent.

"In the midst of a global economy that is being reshaped, with growth and capital flows shifting from north to south and west to east, Africans have a unique opportunity to break the structural constraints that have marginalized the continent for decades, if not centuries," Sita said.

SAinfo reporter

First-world infrastructure plus a vibrant emerging market equals huge investment potential!

South Africa's Cabinet has approved a plan to capture and store carbon dioxide, a major greenhouse gas, in deep geologic formations.

"Cabinet endorsed the Carbon Capture and Storage Roadmap," Performance Monitoring and Evaluation Minister Collins Chabane said at a media briefing in Pretoria on Friday.

Carbon capture and storage has been identified in the government's long-term mitigation scenarios plan as one of the options to reduce carbon dioxide emissions, one of the main drivers behind global warming.

"One of government's strategic objectives is mitigation against carbon emissions and adaptation to the impact of climate change," Chabane said following the Cabinet's latest fortnightly meeting.

South Africa relies heavily on fossil fuels (coal, gas and oil) for its energy production.

Chabane said South Africa had voluntarily committed to reduce its CO2 emissions by 34 percent by 2020, and by 45 percent by 2025, on condition that the requisite technological and financial support was provided.

"Carbon capture and storage can reduce CO2 emissions by 80 to 90 percent ... particularly CO2 from sources such as electricity generation plants, coal-to-liquid plants and cement manufacturing plants," he said.

Carbon capture and storage involves capturing CO2 from a point source, such as a power station or coal-to-fuel plant; transporting it, usually by pipeline; and pumping it down a borehole into porous rock formations deep underground, where it is contained and stored.

A recently-released Geological Storage Atlas has identified potential carbon capture and storage areas in South Africa.

It is understood the next step in the carbon capture and storage "roadmap" process will be a test injection of CO2 into a suitable geologic formation, to determine whether such storage can be safely undertaken in South Africa.

Sapa

Opportunities, incentives, regulations, assistance.

Port operator Transnet Port Terminals will spend R33-billion (US$4.3-billion) over the next seven years on upgrading and expanding South Africa's ports, as part of a massive state-led infrastructure drive aimed at boosting the country's economic growth.

The R33-billion capital expenditure will form part of state-owned Transnet Group's R300-billion (US$39.1-billion) expenditure on port and rail capital projects until 2018/19.

Unveiling details of the expenditure in Durban on Thursday, Transnet Port Terminals CEO Karl Socikwa said Transnet's new market demand strategy "has major implications for our division's responsibility to facilitate unconstrained growth, unlock demand and create world-class port operations through improved efficiencies.

Boosting port competitiveness, efficiency

"It entails an acceleration of our capacity creation programmes at all our major terminals, to ensure that we are able to grow the economy and make the ports as competitive and efficient as possible," Socikwa said in a statement.

Seventy-one percent of the R33-billion spend will be on port expansion projects, while the remaining 29% will go towards "capital sustaining projects", including the replacement and refurbishment of equipment, Socikwa said.

The expansion projects will see major increases in the container handling capacity of the ports in Durban, KwaZulu-Natal and Ngqura outside Port Elizabeth in the Eastern Cape.

Container handling capacity

Durban Continer Terminal's Pier 1 will see its capacity grow from 700 000 to 1.2-million TEUs by 2016/17, while its Pier 2 capacity will expand from 2.1-million to 3.3-million TEUs by 2017/18.

The Ngqura Container Terminal, which has been earmarked as a transshipment hub, will be expanded from 800 000 to 2-million TEUs by 2018/19.

Container capacity is also being created in other terminals, such as the Durban Ro-Ro and Maydon Wharf Terminal, through the acquisition of new equipment, including as mobile cranes, and various infrastructure upgrades.

Bulk handling capacity

The bulk handling capacity at Ngqura, Richards Bay in KwaZulu-Natal, and Saldanha in the Western Cape will also come in for major expansion.

R3.7-billion has been set aside for the ageing Richards Bay Terminal, with investments in mobile equipment, quayside equipment and weighbridges fast-tracked for 2012/13, and safety-critical, environmental and legal compliance projects also in the pipeline.

R1.2-billion will be spent on creating new capacity, including new storage areas, at Richards Bay, while Transnet also pursues the reengineering of the port to create additional capacity for bulk products at the terminal.

Saldanha's iron ore bulk facility, which has undergone significant expansion in recent years, will be further expanded, taking its capacity from 60 to 82 million tons per annum.

Additional manganese capacity will be created by relocating the existing, 5.5mtpa export facility in Port Elizabeth to a new two-berth manganese facility at the Port of Ngqura, boosting capacity to 12 million tons per annum from 2016/17.

SAinfo reporter

First-world infrastructure plus a vibrant emerging market equals huge investment potential!

Mobile Money Africa 2012, the largest industry gathering of its kind on continent, takes place at Johannesburg's Southern Sun Montecasino from 14 to 17 May, promising the latest angles on a highly competitive and fast-developing market in which South African companies are closely involved.

Sonum Puri, programme director for Mobile Money Africa, believes South Africa is not only a competitive mobile money market, but a good representation of the different business models that are transpiring from banks, mobile network operators, third-party operators, social media and online retailers and payment providers.

'A great chance'

"The event will be a great chance to show the mobile money ecosystem can grow to encompass many new stakeholders in the marketplace, which means that people can take lots of examples from the South African market and apply them to their own businesses," Puri said in a statement this week.

"Much has been documented about the potential of mobile money in East Africa, but for the first time, the Mobile Money Africa conference will be exploring the rise of mobile financial services in West African countries such as Senegal and the Ivory Coast," Puri added.

"The event will also be looking at the integration of mobile money with online channels to penetrate the e-commerce market and tap into a new customer base."

Nigerian market

Nigeria, in particular, is predicted to be another big market for mobile money, as research shows that only 25 percent of the Nigerian population hase bank accounts or access to financial services.

"Last May, the Central Bank of Nigeria issued licenses to 16 mobile money operators, and in the last couple of months we have seen a number of providers such as Monitise, Pagatech, eTranzact, and United Bank of Africa announce the launch of new mobile money services," Puri said.

"The Nigerian mobile money market is already valued at US$25-billion, and mobile money users are expected to reach 709-million by 2015."

Tanzania is one of the fastest growing mobile money markets in the world. Puri says the country currently boasts mobile phone penetration of 49%, with four active mobile money businesses, the largest of which is Vodacom’s M-PESA, which has over two-million active users.

MTN offering

"Visa recently unveiled a mobile prepaid product, which will be offered by MTN in Nigeria, Rwanda and Uganda, and other big growth, markets especially for remittances," Puri said.

"The central bank of West Africa is playing an active role in encouraging private sector players to roll out mobile money services, and the central bank has also promoted the launch of the new Gim mobile service in West Africa."

Mobile Money Africa 2012 forms part of the Connected Africa Forum, which will showcase the evolution of mobile lifeline services and applications in Africa, and highlight the evolving intersection between mobile money, mobile health and mobile agriculture.

Speakers

The speakers include: Yolande van Wyk, CEO, eWallet Solutions, First National Bank; Neil Ahlsten, New Business Development Director, Google; Francis Matseketsa, Mobile Money Executive, Econet; Lowell Campbell, Head of Agent Banking, Standard Bank; Stanley Jacobs, Group Head of E-Business, Fortis Mobile Money; Stanley Henning, COO/DMD, Uganda Telecom; Kelvin Twissa, M-Commerce Director, Airtel Tanzania; and Yinka Adedeji, CEO, Afripay/United Bank Africa.

A pre-conference workshop takes place on 14 May. The conference itself will be held on 15 and 16 May, to be followed by a post-conference site visit on 17 May.

SAinfo reporter

Joburg is the City of Gold, Cape Town the Mother City, PE the Friendly City ...

There is great potential for increased trade and investment between South Africa and Saudi Arabia, International Relations Deputy Minister Ebrahim Ebrahim said during a meeting with his counterpart, Deputy Foreign Minister Prince Abdul-Aziz bin Abdullah, in Riyadh on the weekend.

Ebrahim, who is on a two-nation tour of the Middle East and Asia, said South Africa had significant investment interests in Saudi Arabia, through various companies in the engineering, hospitality, retail and health care industries.

Oil accounts for more than 90 percent of Saudi Arabia's exports, and the kingdom is presently the largest supplier of crude oil to South Africa.

According to Ebrahim, bilateral trade between South Africa and Saudi Arabia amounted to more than R37-billion in 2011 - despite the fact that relations between the two countries were "not at the level that they should or could be".

"We appreciate the importance of Saudi Arabia in an international and regional context, and have taken some steps to address the unsatisfactory state of affairs."

The deputy minister said President Jacob Zuma had extended invitations to King Abdullah bin Abdul Aziz al Saud and his foreign minister to visit South Africa.

"We hope that these visits can take place soon, as the memorandum of understanding for the establishment of regular bilateral political consultations is ready for signature,"

"Furthermore, allow me to take this opportunity to extend an invitation to you to undertake a visit to South Africa to further strengthen our bilateral standing," Ebrahim said.

South Africa and Saudi Arabia have so far signed eight bilateral agreements together providing a framework for co-operation, and the South Africa and Saudi Arabia Business Council was established in 2009.

The two countries have also established a joint defence committee and a joint committee on science and technology.

Source: BuaNews

MasterCard has partnered with local mobile-centric financial services company Oltio to bring MasterCard Mobile to the South African market, expanding the platform for online shopping in the country.

MasterCard Mobile lets MasterCard and Maestro cardholders make online purchases using their mobile phones. Consumers can use the platform to make secure online purchases with their PIN-based debit, cheque or credit cards by linking these to their mobile phones.

"It's a convenient and cost-effective payment mechanism that doesn't require customers to open yet another bank account," Oltio CEO Terry Timson said in a statement last week.

To use the service, cardholders must select the MasterCard Mobile option on participating e-commerce sites. First-time users will be prompted to register their cards and their mobile phone numbers on a secure site.

Thereafter, the cardholder's mobile phone number is used to initiate payments, which the cardholder authorises by entering their PINs into their mobile phones.

Online shopping on the increase

According to the latest MasterCard Worldwide online shopping survey, released last week, online shopping has increased significantly in South Africa and continues to show potential for growth.

Fifty-eight percent of South Africans surveyed said they used the internet for shopping, with price, convenience and security being the key factors they considered when purchasing online.

The MasterCard Mobile solution "provides another secure and convenient payment platform for these consumers, and those who have previously been unable to use their Maestro debit card online," said Anna Jones, division president at MasterCard Worldwide in South Africa.

'Greater peace of mind'

Jones said the platform would give users peace of mind because they no longer needed to share their card details with online retailers. The information would be securely held by MasterCard Mobile, which would verify and conclude the consumer's payments.

"The MasterCard Mobile solution does not levy any additional fees to the cardholder and, unlike EFTs, the payment is made instantly," Jones added.

The company said MasterCard Mobile was currently being piloted, with a view to rolling the platform out to most local e-commerce sites in the near future. The platform is also being used for MTN airtime purchases.

The mobile solution can also enable person-to-person money transfers, and can be used at offline stores that are MasterCard Mobile-enabled, according to the company. However, this service is not yet available in South Africa.

SAinfo reporter

First-world infrastructure plus a vibrant emerging market equals huge investment potential!

Nthambeleni Gabara

Rural Development and Land Reform Minister Gugile Nkwinti has urged beneficiaries of land redistribution to use their new assets productively to help them participate in the mainstream of South Africa's economy.

"Our message to land claimants is that ... once we give you the piece of land, you must use it productively to fight poverty and unemployment," Nkwinti said at a ceremony marking the restoration of 12 503 hectares of land to the Lomshiyo Community outside Barberton in Mpumalanga province on Saturday.

"This government is moving faster in redistributing land to its rightful owners through negotiated settlements with the private sector because the majority of our people want their ancestral land [for farming]," Nkwinti said.

"We don't want this timber plantation farmland to become a white elephant."

'Like coming back to life from the dead'

An estimated 2 593 people, comprising 485 households, of which 203 are headed by women, will benefit from the handover of the land.

The chairperson of the Lomshiyo community, Mandla Mavuso, has big plans for its use and development.

"Getting our ancestral land back feels like coming back to life from the dead," Mavuso told BuaNews. "We are willing to work with those who have been using this piece of land. We want to keep this farmland productive.

"We will also look at the possibility of turning this area into a tourist destination," he added.

The restored land was part of Shannon Properties - who have been using it as a timber plantation - as well as other surrounding farms. There are 58 farms in total in the area, and 90 percent of them are privately owned.

'Agricultural sustainability the goal'

Nkwinti told BuaNews that the sustainability of South Africa's agricultural sector was a key goal of the state's land reform programme.

Nkwinti added that he was pleased with progress made in the redistribution of land in Mpumalanga province, while the 16 outstanding land claims in the Free State would be finalised in June this year. The Eastern Cape still had 600 outstanding cases, he said.

The government has set itself the goal of redistributing 30 percent of South Africa's land to historically disadvantaged communities by 2014.

"By speeding up the process of redistributing land to its rightful owners, we think that we are moving towards achieving that mission," Nkwinti said.

Source: BuaNews