As far as inequities in land distribution in South Africa are concerned, the Government of National Unity's Reconstruction and Development Programme (RDP) states that the abolition of the land Acts cannot redress the favouritisms of the past. A national land reform programme is the central force of a programme of rural development. The programme effectively addresses the injustices of forced removals and the historical denial of access to land. In ensures security of tenure for rural dwellers. The programme has two aspects; redistribution of productive land to those who need it but cannot afford it and restitution for those who lost a land as a result of apartheid laws.

To redress the suffering caused by the policy of forced removals, the RDP recommends that the Government should, through the mechanism of a land Claims Court, restore land to people who had been dispossessed by discrimination legislation since 1913.

Land affairs

A White Paper on Land Reform was released in 1995 and is a comprehensive document entailing various interrelated and interdependent programmes which will recognise and cater for the wide range of land needs and rights of South Africans. Memories of dispossession of land deep in South Africa and not only did it deny the majority of the country's people access to land, it is impacted on the development of agriculture.

The land Acts of 1913 and 1923 had the biggest influence on the settlement of, and access to land in South Africa. These Acts served to segregate white and African farmers territorially. This segregation has resulted in a highly unequal distribution of land, with some 80 percent of the population being prevented from owning or leasing land in over 80 percent of the country.

The unequal distribution of land is reflected by the dual agricultural system which has evolved - a large-scale, capital-intensive, white commercial sector, and an African farming sector (situated largely in the former homeland areas), which contributes more toward the economy in the form of labour than in food production.

Land reform now provides the potential for the creation of a viable small-scale farming sector in South Africa - an idea favoured by both the World Bank and the Development Bank of Southern Africa.

Housing

Almost 240000 homes need to be built each year to keep up with the growth of the South African population. At minimum, one million low-cost houses should be constructed over the next five years, according to the RDP. These units should be specifically intended for low-income households and should include the rural areas.

Housing policy

A separate Ministry for National Housing was established in June 1993 to achieve the restructuring of institutional structures in housing; coordinating the activities of the various housing departments; establishing a negotiated interim housing policy; reaching understandings with community based organisations - such as those represented in National Housing Forum - on an overall framework, and establishing a closer functional linkage between urbanisation and housing provision.

The White Paper on Housing was published in December 1994 and reiterates the Government's housing goal. It recognises that the environment within which a house is situated is as important as the house itself.

Financing

A sum of R2200 million was allocated to housing in the 1994/95 Budget to address the country's enormous housing backlog, but the Government stressed that the mobilisation of private saving for low-income housing through government subsidies and other methods would be central to the success of any housing strategy.

The variety of government-backed housing subsidies was rationalised into a single scheme during 1994. In essence, it offers a single lump-sum payment to first-time buyers. The subsidy is paid out to the beneficiary on transfer of the property - which can be a new or second-hand house, or a site-and-serviced property.

Foreign aid for housing

In July 1994, Germany announced that it would grant South Africa some R24 million for the construction of housing for farmworkers. The direct grant would be in addition to about R107 million in aid which Bonn had already promised South Africa in 1994.

In September 1994, the Nedcor banking group and the United States Agency for International Development (USAid) concluded a breakthrough agreement in which USAid undertook effectively to guarantee loans of R162 million for low-cost housing in South Africa. The deal would allow Nedcor to raise foreign finance in the US capital market at preferential interest rates.

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