We can only support projects that will benefit land reform beneficiaries
We consider projects anywhere in
South Africa and in all sectors
Our support focuses on funding the advisory services required to facilitate mutually beneficial and commercially viable partnerships between land reform beneficiary communities and private investors. These partnerships are typically lease-based agreements.
We will only consider projects that will benefit communities who are beneficiaries of the Land Reform Programme in South Africa.
WHAT WE DO NOT SUPPORT
These fall outside of our scope
We do not support projects that fall outside the Land Reform Programme or that are based outside South Africa.
- We do not support individuals.
- We do not provide financing or seed capital.
- We do not make donations or provide grant funding.
- We do not provide bursaries.
- We do not fund infrastructure development.
HOW DO WE DECIDE WHO TO SUPPORT?
We take into account the following guiding principles when considering applications for support.
Agreements should produce mutually beneficial results for beneficiary communities and investors.
Properly elected and effectively supported community bodies should make the key decisions on whether or not to accept an investment proposal.
Projects supported should be commercially viable and have a positive social impact in terms of jobs, income and skills for the community. The ultimate assessment of commercial sustainability will be made by the investors who risk their resources in the development.
Commercial ventures require those involved to risk resources in pursuit of a reward. It is important that the risks are carried by parties that are able to accept them. The most successful Community Private Partnerships are those where the private investor carries the commercial risk at inception and the community has the right to acquire an increasing stake in operations as they move to profitability.
The advisors should be independent of the community, the investor and Vumelana and should not have a financial interest in the projects supported.
The outcome of the deal structuring process should be an agreement that is fair to all parties and is legally secure.
Eligibility and impact requirements
Requests for support are assessed on a competitive basis taking into account the following eligibility and impact criteria.
In order to be eligible for support –
- The Communal Property Institution should be registered
- Its members should be poor and needy people
- The Communal Property Institution should have sufficient rights to the land to be able to develop it
- The land to be developed should fall within South Africa’s Land Reform Programme
Vumelana aims to support those projects that have the greatest potential to impact on the communities involved. Proposals are assessed on a competitive basis. Those which Vumelana judges to be the most likely to succeed are supported. In making that assessment Vumelana considers:
- The likely socio-economic impact of the project
- The commercial viability of the proposed development
- The stability of the Communal Property Institution
- The need for government support
- The potential for concluding a deal
- The quality of the proposal
- The experience of the advisory team
Apply for support
If you require more information or would like to send us a project to consider, please give us a call, drop us an email or fill out the contact form below and we will get back to you as soon as possible.