Agree with one another, make a contract with one another, support one another
Vumelana is a non-profit, public benefit organisation established in 2012 to help communities who acquire land under the Land Reform Programme develop their through partnerships with the aim to create jobs, boost income, develop communities and enable the transfer of skills.
Productive use of land is central to sustainable development
This is particularly true for rural communities and the beneficiaries of South Africa’s Land Reform Programme.
The Land Reform Programme transfers assets – the land – to the poor. This ought to provide a pathway out of poverty for the communities involved – at a minimum it should provide a level of food security. But to do that, the transferred land must retain its productivity and economic use and the communal land-holding entities that administer the assets must do so effectively and in the interests of their members.
Three things are therefore required to bring transferred land into effective economic use:
- Capital must be raised to develop the land;
- Skills must be acquired to manage the business on the land; and
- New landowners must be enabled to manage their affairs effectively.
That requires the structuring of partnerships between land-owning communities and commercial investors who bring capital and skills to build sustainable land-owning communities who are drivers of economic growth and development.
Since our inception, we have spent just under R40-million to support 19 land reform beneficiary communities under both the Transaction Advisory and the Communal Property Institution support programmes.
Vumelana’s core offering is to reduce the risks for communities, investors, advisors and government when structuring partnerships under the Land Reform Programme.
Vumelana wants to enable communities who acquire land under the Land Reform Programme put that land to effective economic use, and create long-term benefits for these communities in a way that will contribute to rural development and economic growth.
We do this through two priority programmes, the Transaction Advisory Support Programme and the Communal Property Institution Support Programme.
The Transaction Advisory Support Programme is designed to support the provision of advisory services to Communal Property Institutions and investors to conclude Community Private Partnerships.
The Communal Property Institution Support Programme is designed to support the development of well-governed institutions for the implementation of settlement agreements and the building of partnerships.