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Many beneficiaries of the land reform programme often misconceive that good corporate governance is a luxury exclusive to large corporate organisations and irrelevant in the administration of their assets.
While this view is fundamentally incorrect, it is somewhat understandable, given the impact of dispossession and limited understanding of commercial principles among many members of claimant communities.
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In light of the reported widespread failure of farms allocated to beneficiary communities under the government land reform project, primarily due to the lack of post-settlement support, it has become evident that maintaining the productivity of the land necessitates financial and other forms of support, including collaboration with other players such as the private sector in order to tap on their expertise.
Communal property associations (CPAs), the landholding institutions established by law to acquire and manage beneficiary land, often grapple with the effective management of restored land. They are often marred by infighting, factionalism, patronage and a lack of accountability, resulting in mismanagement of restored land and misappropriation of funds.
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This is mainly due to a lack of good governance to guide the effective running of their land enterprises. The private sector possesses the necessary skills, markets, and access to finance to help claimant communities sustain and scale their operations on restituted land. However, for land enterprises to attract such private sector support, they need to have effective governance structures in place. At their core, communal property institutions must establish basic governance arrangements.
These must include an upto-date constitution, properly elected governing bodies and committees, independent financial auditing and management of property and assets in line with agreed-upon policies. These fundamentals ensure the proper governance and administration of land allocated to communities through the land reform programme.
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Without a doubt, good governance has the potential to uplift beneficiary communities with expertise essential to achieve better outcomes. However, government cannot do it alone. The private sector can contribute meaningfully to the country’s land reform programme.
Accounting and auditing firms, with their skills, intellectual properties and resources, can assist beneficiary communities in their upskilling. To enhance the overall management and performance of restituted land, auditing firms and other businesses could consider partnering with credible institutions with a proven track record working in the land reform space, such as the Vumelana Advisory Fund.
Such an initiative could begin to create opportunities for partnerships between land reform beneficiaries and private investors.
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