The Business Trust
From 1999 to 2011 the Business Trust combined the resources of business and government to accelerate the achievement of national objectives. It focused on creating jobs, building capacity and combating poverty in the early years of democracy.
After 12 years it has fulfilled its mandate and completed its work and in 2012 the Business Trust provided the initial funding to Vumelana to build on the success of the Maruleng and Bushbuckridge Economic Development Initiative (MABEDI).
Vumelana was started following the successful conclusion of a five-year pilot project run by the Business Trust, the Maruleng and Bushbuckridge Economic Development Initiative (MABEDI)
MABEDI aimed to pilot a market-based approach to economic development and part of the pilot project focused on working with land reform beneficiary communities responsible for the management of land acquired under the Land Reform Programme.
In the end, MABEDI benefitted 3 300 families and created 4 975 jobs.
The Maruleng and Bushbuckridge communities live on valuable land next to the Kruger National Park.
A Business Trust study estimated that over 85% of the households in the communities lived below the household subsistence level, with only 14% of the adult population being employed.
The Business Trust piloted a market-based approach to land development. Part of the programme focused on working with the Communal Property Institutions responsible for managing land acquired under the Land Reform Programme.
MABEDI supported the communities in three main ways: providing community facilitation; supporting the administration of the Communal Property Institution; and making available transaction advisory services.
The support was aimed at bridging the knowledge and skills gap between the communities and potential investors. The services also sought to ensure that the partnerships were fair and sustainable.
The partnerships were structured with investors to develop the communal land. Sixteen of these partnerships raised R1,5-billion, benefitted 3 300 families and created 4 975 jobs.
The project’s success stemmed from the sustained and dedicated attention of the skilled transaction advisors, the community facilitators and the property institution administrators.
Based on the Maruleng and Bushbuckridge Economic Development Initiative pilot project, the Business Trust resolved to make a founding donation to establish Vumelana.
A set of toolkits, Commercial Partnerships for the Development of Restored and Communal Land, shares lessons learnt from the MABEDI projects and shows how properly facilitated and carefully structured commercial partnerships can promote job creation and rural development in communities living on restored and communal land.
Go to our RESOURCE library to download the MABEDI Toolkits.