Ever since the land reform programme was initiated in 1994, the hopes of communities forcibly removed from their ancestral land have been dampened by the slow progress of land restitution and redistribution. Despite government efforts, it is clear that state resources alone are insufficient to address the complex issue of land reform in South Africa.
The high failure rate of the land reform programme is often the result of a lack of skills and access to funding, insufficient asset management support, and non adherence to basic administrative and corporate governance, all of which eventually lead to the dilapidation of property and misuse of resources, among others.
Peter Setou, Chief Executive of the Vumelana Advisory Fund says, “the failure of the land reform programme highlights the need for private sector involvement to revive the process and, in particular, to play a part in the provision of post-settlement support, a crucial area where many projects have failed due to a lack of resources.”
“Corporate social investment (CSI) can play a crucial role in bringing the expertise, resources, and capacity necessary to drive sustainable development, economic growth as well as sustainable land reform process, post-settlement,” he says.
He highlights that private sector involvement, especially through CSI initiatives, can contribute to land reform by providing post-settlement support. Without access to resources and expertise in managing commercial farming ventures, many land reform beneficiary communities continue to struggle to put their land to productive use.
Setou argues that channelling CSI funding into land reform can enable land reform beneficiary communities access to the resources they need to put their land to productive use. It could be in the form of training, or the financial support needed for the communities to thrive, create jobs and income, and contribute to social and economic stability and the sustainability of land and its use.
“There needs to be a deliberate effort to channel some CSI funding towards land reform to support efforts in driving the success of land reform, which will culminate in job creation, improved livelihoods and the revitalisation of rural communities,” he adds.
In addition, through CSI funding allocation, the private sector can provide grant funding to drive the broader success of the land reform programme. Funding can be allocated to capacity-building and organisational development for land reform beneficiaries. Grant funding can also help launch projects on restituted land, aimed at unlocking the economic potential of titled land held by Community Property Associations (CPAs).
Currently, there are over 1707 CPAs registered with the Department of Agriculture, Land Reform, and Rural Development, however, there is a significant need for capacity building on them. CSI involvement can play an important role in addressing this gap by supporting the development and deployment of the necessary tools needed to enable CPAs across the country to effectively manage their land.
“Corporate social investment is not a solution on its own, but it is a crucial piece of the puzzle in addressing the challenges of land reform now and moving forward,” Setou says. “With collaborative efforts between the government, non governmental organisations and the private sector, South Africa can make the vision of equitable land restitution and improved livelihoods for millions of South Africans a reality.”
Vumelana has to date received funding support from a few companies linked to CSI. This has been used for various capacity building programmes that are aimed at ensuring that supported land reform beneficiaries can manage their affairs effectively and in turn maintain productive use of restored land. There is a need to get more companies involved in supporting land reform initiatives as this is important to improve the lives of rural communities and enhance social cohesion. This will also help to extend the support to more communities than it is currently the case
To date, Vumelana has been able to facilitate partnerships between land reform beneficiary communities and the private sector through its Community Private Partnerships (CPP) model. Since 2012, the organisation has successfully facilitated and concluded 26 community private partnerships between land reform beneficiary communities and private investors. These projects have attracted more than R1 billion in private investment and put in excess of 76 000 hectares of land to productive use. This will, in turn, create around 2 500 jobs and positively impact more than 16 000 households.
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