Transaction Advisory Support Programme
Bringing together land reform beneficiaries and investors for a mutually beneficial partnership
The Transaction Advisory Support Programme is designed to facilitate commercially viable, mutually beneficial partnerships between land reform beneficiary communities and private investors that create jobs, generate income and transfer skills.
These Community Private Partnerships provide access to the required resources without the community giving up ownership of the land or waiting for government grants. The restored land is put to effective use and remains productive and economically active, resulting in a sustainable enterprise that can deliver long-term benefits to the parties involved.
Benefits of successful partnerships in land reform
Job creation, rural development and economic growth
Successfully implemented Community Private Partnerships in land reform can lead to creating jobs, rural development and economic growth, which in turn can contribute to the implementation of government policy for rural development and land reform.
This is done through:
- Attracting private investment on community-owned land
- Mobilising working capital for restored land via private sector investors
- Transferring skills and providing technical expertise in support of land reform projects
- Retaining and increasing employment opportunities and wages
- Enhancing productivity levels in rural areas
- Providing structured skills transfer and capacity-building programmes as contractual obligations of commercial partnership deals to benefit farmers and entrepreneurs within the designated areas
- Providing land-owning communities with the option of equity sharing in the business that operates on the land
These outcomes are typically produced without drawing on public resources.
How We Work?
It’s a well-coordinated 6 step process
01
Communities, government departments, transaction advisory teams, and investors are invited to apply for support. Unsolicited applications are welcome.
02
A cooperation agreement is signed with the community setting out the basis of the relationship between the community and Vumelana.
03
A transaction advisory team is contracted to structure a partnership agreement in terms of which the community makes the land available and the investor undertakes to finance and manage operations.
04
The transaction advisory team procures proposals from potential investors which show how the land will be developed to create jobs, generate income and transfer skills and other benefits for community members.
05
Once a partnership agreement is signed, the investor reimburses Vumelana for the costs incurred by the transaction advisory team in putting the deal together.
06
Vumelana may, at its discretion, use the reimbursed funds to finance support for the Communal Property Institution for a period of up to two years.
Support The Transaction Advisory
Support Programme
Organisations with an interest in commercial partnerships for land reform can support the communities involved in Vumelana’s Transaction Advisory Support Programme.
Progress to date
The good progress we made
We have approved about 79 projects and facilitated 26 partnerships under the Transaction Advisory Support Programme.
Potential impact of Vumelana-facilitated partnerships
- Spent just over R40-million in transaction advisory fees.
- Facilitated 26 partnership that have the potential to:
Benefit 20 communities and just under 16 000 beneficiary households
Mobilise just over R1-billion in investment
Create and/or save approximately 2 500 jobs
Put 76 000 hectares of land to economic use
