What's Happening?
The success of South Africa's land restitution program is heavily reliant on the effective governance of Communal Property Associations (CPAs). According to Peter Setou, Chief Executive of the Vumelana Advisory Fund, many CPAs are struggling with governance issues
that hinder productive land use and deter investment. The Department of Land Reform and Rural Development's 2024/25 Annual Report indicates that out of 1,743 registered CPAs, only 207 are fully compliant with governance standards. Setou emphasizes the importance of using the December period to address these governance gaps, which are seen as a barrier to turning restored land into a productive economic resource. Good governance is crucial for attracting private investment and securing post-settlement support, which are necessary for CPAs to enter formal markets and generate income.
Why It's Important?
Improving governance within CPAs is vital for the success of South Africa's land reform efforts. Effective governance can transform restored land into a productive economic resource, benefiting communities by creating jobs and generating income. Poor governance, on the other hand, deters investors and weakens the institutions meant to support land reform beneficiaries. By addressing governance issues, CPAs can become credible partners for banks, agribusinesses, and development agencies, facilitating partnerships and investment. This, in turn, can lead to increased productivity and economic development in rural areas, ultimately contributing to the broader goals of land reform.
What's Next?
CPAs are encouraged to use the festive season to strengthen their governance systems. This includes conducting regular financial audits, defining roles and responsibilities, and implementing transparent procurement processes. By doing so, CPAs can improve their investment readiness and attract commercial partners. The Vumelana Advisory Fund has been working with CPAs to build governance systems that support viable partnerships, and this effort is expected to continue. As CPAs improve their governance, they can engage more effectively with potential investors and partners, leading to increased productivity and economic benefits for their communities.
