Mzansi’s agricultural industry is waiting with bated breath for South Africa’s highest court ruling in favour of farmers when it comes to the transferability and trading of water rights.
In this episode of Farmer’s Inside Track, Dr Aluwani Nemukula, farmer and director at Alunem Holdings, joins the show to unpack the much-anticipated court ruling and what it could mean for the sector.
Nemukula kicks off by confirming that the management of water resources in the country is a very complex topic involving a lot of variables and different stakeholders.
The National Water Act 36 of 1998, he says, promulgated in 1998. The fundamental purpose of this was to regulate water use in the country and therefore replaces any other previous laws relating to water rights
“This (Act) introduces a fundamental change which means that users will eventually have a title deed that is associated with rights.”
Department has other ideas
However, the department of water and sanitation has shifted gear wanting to reverse the flexibility of water rights in the country. This means that H20 rights cannot be sold or transferred to another individual.
“The department is arguing that the sale of water rights and water use entitlements will frustrate equitable access and keep those historically disadvantaged persons out of the agricultural sector if they cannot afford it.
“They are therefore declaring that water cannot be sold.”
Final judgement
However, the agricultural sector has been challenging the department and a final judgment on the sale of water rights is expected on 25 August 2022. According to Nemukula, this could have far-reaching consequences for the agricultural sector, more especially large commercial farmers.
He adds that this could also negatively affect small-scale and new farmers.
In the episode, Nemukula further reveals:
- Water entitlements in the agriculture sector;
- What farmers should look for when acquiring land; and
- Implications on farmers if court ruling favours the department.
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ALSO READ: Agriculture awaits final decision on water rights transfers
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