Vumelana Advisory Fund recognised for land reform projects

The Vumelana Advisory Fund was acknowledged at the 2017 Drivers of Change Awards, hosted by the Southern Africa Trust and the Mail & Guardian, after having been nominated under the Special Mention category of the 2016 Investing in the Future Awards.
Vumelana Advisory Fund recognised for land reform projects

The Special Mention category of these awards recognised projects which show great promise and demonstrate an innovative approach to development. The Vumelana Advisory Fund has made a tangible difference in assisting beneficiaries of the land reform programme to develop and put their land to productive use.

“It is an honour to be acknowledged for the contribution that we are making in the land reform space,” said Peter Setou, CE of the Vumelana.

He continued: “Our aim is to support the establishment of commercially viable partnerships between investors and local community land owners to create jobs, income and skills, and demonstrate the value of community private partnerships (CPPs) as a contributor to successful land reform.”

Productive land use

He added that, “Despite the current debates and volatility around land reform, we hope that all South Africans stay focused on the key elements that will drive the successful implementation of land reform in the country. In our view, it is crucial to ensure that redistributed and restituted land is used productively to the benefit of South Africa’s communities.”

Vumelana’s business model benefits both communities and investors involved in land reform. The model also makes it possible for Vumelana to pre-finance deal structuring and negotiations. When those negotiations yield a community private partnership deal, Vumelana recovers its fees from the private investor. Recovered fees are, in turn, used to provide organisational development and governance support to the communities assisted.

The Investing in the Future Awards recognises the often-unsung contributions that are made by the private sector and businesses to the future of South Africa and its citizens. A number of projects were also identified which whilst still relatively new, could mean big things in the future.

Moletele Communal Property Association

Attesting to the role and impact of Vumelana’s work, Hezekiel Nkosi, chairman of the Moletele Communal Property Association (CPA) in Limpopo, says, “Vumelana’s involvement in facilitating the transaction for our CPA and our investor, for example, has greatly changed our community. With three clusters within our CPA, (the Matuma Cluster, Richmond Cluster and Moletele) seasonally we employ just over 4,500 temporary employees, with peak figures during the harvest.”

From 2012 to date, the Vumelana Advisory Fund has facilitated 14 partnership agreements, that have the potential to mobilise an investment value of more than R500m, as well as contributing towards putting approximately 67,000 hectares of land to productive use.

Let's do Biz