The department of rural development and land reform will spend R66-million on social and economic development in Dysselsdorp, in the Western Cape, Minister Gugile Nkwinti said on Monday.

Nkwinti made the announcement during a visit to the impoverished rural area on Saturday.

The visit was part of a process of addressing social and economic development and tackling outstanding land reform issues.

Dysselsdorp, which has been selected by the provincial government as the pilot site for a comprehensive rural development programme in the Western Cape, has an estimated 22 000 residents and is situated 10 kilometres outside Oudtshoorn in the Klein Karoo.

It is characterised by high employment, a lack of water, few social services and a need to address land restitution.

Nkwinti undertook to inject R66-million into the local economy for both social and economic development.

Of the amount, R36-million of this amount was financial compensation for successful land claimants and the rest was for overall development of the area.

The ministry would also profile the area's needs, based on house-to-house assessments.

An intergovernmental task team made up of 13 departments would be set up to do the groundwork for the programme. Community members would then oversee its planning and execution.