Many communities regain land only to find it “economically stranded” due to a lack of governance and technical skills. Peter Setou, CEO of the Vumelana Advisory Fund, says it is time for South Africa’s private sector to view land reform as an investment, not a risk.
For too long, South Africa’s private sector has viewed land reform as either a government problem or a political risk best avoided. Scepticism, uncertainty and fear of reputational exposure have meant that only a handful of companies have meaningfully raised their hands to support land reform projects.
When a community regains land but cannot hire a transaction advisory team, a lawyer, an agronomist or a bookkeeper, and also has access to working capital, for example, that land becomes a dead asset. This is not merely a social tragedy. It is an economic crisis.
It’s a misconception that once land is restored, the hardest part is over. In reality, the day of handing over the land to beneficiaries marks the starting point. The real challenges then emerge: the funding and capacity gaps between ownership of land and its productive use.
Funding gaps in land reform
These gaps are in two critical areas. First is the pre-investment void. Private investors are unwilling to engage when communal property associations (CPAs) are unstable, poorly governed or administratively weak. There is almost no funding to fix governance failures before an investor arrives. Then, state grants are often rigid, slow and misaligned with commercial realities. By the time a government tractor arrives, for example, the planting season has passed.
The result is land that is legally owned, but economically stranded.
The state’s land reform budget remains under severe pressure. The Commission on Restitution of Land Rights continues to face backlogs and declining funding, limiting the government’s ability to provide sustained, hands-on support. The challenge lies equally in the silence of many of the private sector players on land reform.
Successful land reform requires capital, skills and good governance. While communities may receive land, they are rarely equipped with the “soft infrastructure” required to manage complex land assets. Governance training, financial management, succession planning, dispute resolution and administrative capacity are not optional extras. Without these, land remains a dead asset, owned but not productive.
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Proven solutions already exist
Over more than a decade, models such as Vumelana’s Community-Private Partnership (CPP) approach have demonstrated that land reform can succeed when communities and private investors are brought together through structured and fair partnerships.
However, these partnerships do not materialise organically. They require transaction advisory support, legal structuring, governance, capacity-building and ongoing facilitation – precisely the elements most consistently underfunded in the land reform value chain.
Why CSI must evolve
South African corporate social investment (CSI) initiatives have historically not focused on land reform. It’s time for CSI to begin addressing areas where structural challenges persist and where they can contribute towards economic sustainability.
Using a CSI budget to fund transaction advisory services, governance training, or legal facilitation is not donating; it’s performing a high-impact economic intervention. For every rand invested in advisory support, millions in private investment can be unlocked.
Private investors in land reform cannot reasonably be expected to fund the full transaction and advisory process themselves. When the entire process is funded by a single investor, power imbalances and perceptions of unfairness can arise, undermining trust and long-term viability. Independent, well-resourced facilitation ensures partnerships are structured on a fair, transparent basis to protect the interests of both communities and investors.
Evidence that it works
The results of this approach are tangible. The Ebenhaeser CPA in the Western Cape now exports agricultural produce to international markets. The Barokologadi CPA has created dozens of jobs through tourism partnerships linked to the Madikwe Game Reserve precinct.
Vumelana has facilitated over 26 partnerships between communities and private investors using the community private partnership (CPP) model, putting approximately 76 000 ha of land to productive use.
These didn’t happen by chance; structured partnerships, sustained advisory support and targeted capacity-building interventions enabled them.
For the private sector, supporting land reform should be a priority. An investment in land reform is an investment in the overall social and economic stability of the country.
Audit firms, legal practitioners, governance specialists, financiers and sector experts all have a role to play. Technical mentorship and administrative support from these entities will help CPAs move forward and effectively manage their assets.
A failure of land reform will continue to fuel social and economic instability, entrench inequality and undermine confidence in the transformation policies. Success, by contrast, offers a powerful engine for job creation, thriving rural economies and inclusive economic growth.
For the private sector, supporting land reform is not an act of benevolence; it is a necessary investment in the country’s social and economic stability.
- Peter Setou is the CEO of Vumelana Advisory Fund, a non-profit organisation. The views and opinions expressed in this article are those of the author and do not necessarily reflect the views or positions of Food For Mzansi.
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