‘Race quotas’: What you need to know about the DWS draft regulations

The federation of agricultural organisations in South Africa, Agri SA says the draft regulations by the Department of Water and Sanitation will have a devastating effect on the country’s commercial agricultural sector if adopted in their current form.

The draft regulations which were published for public comment by Water and Sanitation Minister Senzo Mchunu on 19 May, under the National Water Act require farmers to have 25% to 75% black shareholding for their applications to succeed.

WHAT TO KNOW ABOUT DRAFT REGULATIONS FOR WATER IN SA

According to the draft regulations farmers who draw 250 000 to 500 000 cubic metres of water require 25% of black shareholding for their water use licence to be granted, while 50% black shareholding is stipulated to use more than 500 000 cubic metres. To draw more than a million cubic metres of water, 75% black shareholding is required.

The commentary period on the proposed Revision of Regulations regarding the Procedural Requirements for Water Use Licence Applications and Amendments will expire on 18 July 2023.

DIRE CONSEQUENCES FOR FOOD SECURITY

Agri SA said the consequences for food security and the sustainability of the agricultural sector should these regulations be passed in the current form cannot be understated.

The federation said the regulations would have a devastating impact on the sector and its ability to provide the country with a secure supply of food. This is because focussing solely on ownership, to the exclusion of all other relevant factors, will mean the loss (or partial loss) of water resources for numerous currently viable commercial farming enterprises.

Furthermore, Agri SA said concerningly, these regulations are also unlikely to achieve the goal of further transformation in the sector. Achieving this will require creating an environment which is conducive to growth and investment in the sector, and which provides meaningful support for new entrants.