CPAs urged to fix governance gaps over festive season

The success of South Africa’s land restitution programme depends heavily on the ability of Communal Property Associations (CPAs) to manage restored and redistributed land for the benefit of communities. Yet, for many CPAs, productive land use remains out of reach, not because of a lack of land, but because of persistent weaknesses in governance.

According to the department of land reform and rural development’s 2024/25 Annual Report, South Africa has 1 743 registered CPAs. Of these, only 207 are fully compliant with the governance standards required by law.

The majority are either partially compliant or entirely non-compliant. This is a systemic constraint on the success of land reform.

Time to restart

Peter Setou, chief executive of the Vumelana Advisory Fund, said CPAs experiencing operational slowdowns should treat this period as an opportunity to address the internal governance failures that continue to block productive land use and deter investment into restituted land.

“The December period in particular should be used to fix the governance gaps that are holding them back. Too often, governance is seen as an administrative burden rather than the foundation of commercial viability. Yet good governance is the mechanism that can turn restored land into a productive economic resource,” he said.

According to the Vumelana Advisory Fund, investors, development financiers and strategic partners require clear evidence of financial accountability, transparent decision-making and institutional stability.

“This is not ideological resistance to land reform. It is a rational response to unmanaged risk. Poor governance not only deters investors, it also weakens the very institutions meant to support beneficiaries,” he said.

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What effective CPA governance looks like

If restored land is to generate consistent economic value, governance must move from principle to implementation. This requires CPAs to focus on a few non-negotiable governance pillars:

CPAs must operate under approved, up-to-date constitutions, maintain accurate and verifiable membership registers and apply clear policies governing land use, benefit-sharing and decision-making.
CPAs should produce regular management accounts and submit audited annual financial statements on time. This requires properly organised offices, disciplined record-keeping and active oversight of communal assets.
CPAs should communicate with members, hold properly constituted annual general meetings and ensure that consistent reporting remain essential to preventing conflict and sustaining trust within communities.

The department of land reform and rural development’s own reporting over several years shows a consistent pattern of governance failures across CPAs, Setou said.

“Outgoing executive committees frequently obstruct elections. Committee members misuse CPA resources for personal benefit. In many CPAs, financial records and documentation of land-related decisions remain incomplete or entirely absent.

“Accountability is weak in CPAs that operate both as landholding entities and business enterprises where lines of authority and responsibility are blurred.”

These failures translate directly into stalled projects, lost investment, internal disputes and land that remains economically underutilised.

Using downtime to remove structural blockages

Setou said CPAs should deliberately use this period to strengthen governance systems.

“Regular financial audits, clearly defined roles and responsibilities, transparent procurement processes and structured decision-making systems are not just compliance exercises. They are risk management tools that open up opportunities for partnerships and investment.

“When governance is sound, CPAs become credible counter-parties. They can engage banks, agribusiness partners and development agencies on an equal footing. Partnerships form more easily, and land can be used productively for the benefit of all beneficiaries.”