What's Happening?
The Vumelana Advisory Fund, led by Chief Executive Peter Setou, is emphasizing the need for improved governance within South Africa's Communal Property Associations (CPAs) to ensure the success of the country's
land reform program. Despite significant progress in transferring land to previously disadvantaged communities, poor governance and compliance failures are hindering CPAs from realizing their full potential. Setou highlights that 82% of CPAs fail to submit necessary annual reports, which is a major challenge. The Communal Property Associations Amendment Act of 2018 aims to address these issues by establishing a CPA Office and a formal Registrar to enhance compliance oversight. Setou advocates for a responsive regulatory approach, including community advisory boards and forums to facilitate dialogue with the Regulator.
Why It's Important?
The governance issues within CPAs are critical as they directly impact the effectiveness of South Africa's land reform efforts, which are designed to empower previously disadvantaged communities. Effective governance can transform restituted land into a sustainable source of opportunity, driving rural development and economic transformation. The success of CPAs is vital for creating jobs and attracting investment, as demonstrated by Vumelana's Community Private Partnership model, which has mobilized significant investment and created thousands of jobs. Strengthening CPA governance could lead to more efficient land use and greater economic benefits for communities.
What's Next?
To address the governance challenges, Setou suggests implementing capacity building and institutional support to ensure transparency and accountability within CPAs. He also recommends leveraging technology for compliance management and introducing mechanisms like compliance notices and periodic inspections. The amendment should encourage self-reporting by CPAs to monitor compliance. Additionally, incentives such as funding for CPAs that excel in governance could motivate better compliance. These steps are crucial for sustaining progress in land reform and ensuring that CPAs can effectively manage and develop their land.
Beyond the Headlines
The governance of CPAs involves complex political and operational challenges, akin to managing a small country. Effective administration and professional management are essential for CPAs to thrive. The Vumelana Advisory Fund's experience shows that CPAs with resources for professional administration are more likely to succeed. Incentives and support from credible entities can further enhance CPA operations, ensuring that land reform efforts lead to lasting benefits for communities.
