The success of South Africa’s land restitution programme depends heavily on the ability of Communal Property Associations (CPAs) to manage restored and redistributed land for the benefit of communities.
By Peter Setou, Chief Executive of the Vumelana Advisory Fund
Yet, for many CPAs, productive land use remains out of reach, not because of a lack of land, but because of persistent weaknesses in governance.
According to the Department of Land Reform and Rural Development’s 2024/25 Annual Report, South Africa has 1 743 registered CPAs. Of these, only 207 are fully compliant with the governance standards required by law. The majority are either partially compliant or entirely non-compliant. This is a systemic constraint on the success of land reform.
Peter Setou, Chief Executive of the Vumelana Advisory Fund, says CPAs experiencing operational slowdowns should treat this period as an opportunity to address the internal governance failures that continue to block productive land use and deter investment into restituted land.
“The December period in particular should be used to fix the governance gaps that are holding them back,” Setou says. “Too often, governance is seen as an administrative burden rather than the foundation of commercial viability. Yet good governance is the mechanism that can turn restored land into a productive economic resource.”
Also read: Stronger CPA governance will unlock the promise of land reform – Peter Setou
Governance Determines Capital Inflows and Investments
Good governance ultimately determines whether a CPA can attract private investment and secure post-settlement and capacity-building support. This is needed for CPAs to enter formal markets, protect communal assets from misuse and enable land reform beneficiaries to generate income and create jobs.
According to the Vumelana Advisory Fund, investors, development financiers and strategic partners require clear evidence of financial accountability, transparent decision-making and institutional stability.
“This is not ideological resistance to land reform,” Setou says. “It is a rational response to unmanaged risk. Poor governance not only deters investors; it also weakens the very institutions meant to support beneficiaries.”
What Effective CPA Governance Looks Like in Practice
If restored land is to generate consistent economic value, governance must move from principle to implementation. This requires CPAs to focus on a few non-negotiable governance pillars:
First, CPAs must operate under approved, up-to-date constitutions, maintain accurate and verifiable membership registers and apply clear policies governing land use, benefit-sharing and decision-making.
Second, CPAs should produce regular management accounts and submit audited annual financial statements on time. This requires properly organised offices, disciplined record-keeping and active oversight of communal assets.
Third, CPAs should communicate with members, hold properly constituted annual general meetings and ensure consistent reporting remain essential to preventing conflict and sustaining trust within communities.
Also read: EXCLUSIVE: Land reform bottleneck hampering agricultural potential – Wandile Sihlobo
Governance Failures Continue to Undermine CPAs
The Department of Land Reform and Rural Development’s own reporting over several years shows a consistent pattern of governance failures across CPAs. Outgoing executive committees frequently obstruct elections. Committee members misuse CPA resources for personal benefit. In many CPAs, financial records and documentation of land-related decisions remain incomplete or entirely absent.
Accountability is weak in CPAs that operate both as landholding entities and business enterprises where lines of authority and responsibility are blurred.
These failures translate directly into stalled projects, lost investment, internal disputes and land that remains economically underutilised.
Using Downtime to Remove Structural Blockages
Setou says CPAs should deliberately use this period to strengthen governance systems.
“Regular financial audits, clearly defined roles and responsibilities, transparent procurement processes and structured decision-making systems are not just compliance exercises. They are risk management tools that open up opportunities for partnerships and investment,” he says.
Vumelana’s experience across multiple projects shows governance stability directly affects investment readiness. Several recipients of the Vumelana Governance Awards, for example, have successfully leveraged improved governance to secure funding, attract commercial partners and move into productivity.
“When governance is sound, CPAs become credible counterparties,” Setou says. “They can engage banks, agribusiness partners and development agencies on an equal footing. Partnerships form more easily and land can be used productively for the benefit of all beneficiaries.”
Also read: ‘Land reform cannot work unless we empower people to farm successfully’ – Nick Serfontein
Execution, Not Policy, Will Determine Outcomes
Land reform can only deliver on its promise when restored land becomes productive, generates income and creates jobs. That outcome depends more on whether CPAs function as stable, accountable and commercially viable institutions.
“For CPAs struggling to unlock the value of their land, reflection on governance practices is essential. It’s also essential for CPAs to reach out for capacity building support where it is needed and, in turn, for public and private partners to support them,” notes Setou.
Since 2012, the Vumelana Advisory Fund has worked with a number of CPAs across South Africa to help beneficiaries build governance systems that support commercially viable partnerships. To date Vumelana has facilitated 26 partnerships between CPAs and private investors, mobilising about R1bn in investment funds, putting 72 000 hectares of land to productive use and creating over 2 500 jobs in the process and positively impacting on more than 16 000 households.
