Explaining South Africa's Land Reform Policy Failure through its Instruments: The Emergence of Inclusive Agricultural Business Models

This paper seeks to explain the emergence of South African inclusive agricultural business models in relation to the land reform policy. We demonstrate that in South Africa such policy instruments linking small-scale and large-scale farmers respond to endogenous dynamics linked to the failure of its land reform policy. We study the land reform policy change induced by its policy instruments. Indeed, introducing the market as the preferred means to implement land reform caused unanticipated side effects, creating constant pressure for change that such inadequate instrument exerted on the set policy objectives during the first phase of policy implementation. After cohabitating uneasily with rather antagonistic policy goals, policy instruments ultimately led to a change in policy objectives, shifting from supporting small-scale black subsistence agriculture to targeting a class of emerging farmers committed to commercial agriculture. Inclusive Business Model's policy instruments were subsequently identified as the best fit to achieve the re-adjusted policy goal.