By Peter Setou: Chief Executive Officer of Vumelana Advisory Fund
20 September 2024: While the land reform programme in South Africa has not been all smooth sailing, it would be hasty and premature to suggest that the process should be written off. It is equally disingenuous to opine that there are no success stories that have emanated from this important programme, one that seeks to redress past injustices that saw many communities being forcibly removed from their ancestral land.
Despite the documented failures of the land reform programme, there is equally a body of evidence that attests to the success of the programme, in particular in the eco-tourism sector.
As South Africa celebrates Heritage Month, with a renewed focus on stimulating tourism, it is instructive to examine the impact of the land reform programme on tourism in South Africa.
Many discussions on land reform erroneously look at it through the limited prism of land allocated for agricultural purposes only. Land reform involves the restitution and redistribution of land for use in agriculture, cultural preservation, commercial use, and for eco-tourism and settlement purposes.
For the purposes of this article, emphasis is placed on the impact of land reform in tourism. It is worth noting that 80% of South Africa’s land is used for agriculture according to the Department of Environment, Forestry and Fisheries. Of these, about 11% is arable land and 69% is used for grazing purposes. There are therefore vast tracts of land which are and can be used for eco-tourism purposes or be repurposed for eco-tourism to create real jobs and income.
As an organisation that has provided post-settlement support to many beneficiary communities over the last 12 years, Vumelana Advisory Fund is at the advantageous position of having witnessed first-hand the impact of the land reform programme on the tourism sector in the country. It has seen how the programme has economically uplifted claimant communities, brought about social cohesion and promoted nature conservation and cultural preservation.
Lay of the land – the importance of tourism and conservation
There is general agreement that the tourism sector can play an important role in kick-starting economic growth and creating much-needed employment and entrepreneurial opportunities in South Africa.
According to statistics compiled by the World Travel & Tourism Council (WTTC), South Africa’s tourism sector employed 1.46 million people in 2023 and that is expected to grow to nearly 1.7 million jobs in 2024. The WTTC forecasts that employment in the tourism sector for South Africa is projected to grow to 2.23 million jobs by 2030. While the industry’s contribution to GDP dipped as a result of the Covid-19 outbreak in 2020, the sector still remains one of biggest contributors to the GDP at 3.5% in 2022, surpassing the transport, mining, and agriculture sectors. Its contribution to the GDP was 3.7% before the outbreak of Covid.
Case studies
Since its inception, Vumelana Advisory Fund has concluded 26 projects, facilitating community private partnerships (CPPs) between land reform beneficiaries and private investors. Of those projects 13 are in the tourism sector.
These projects have the combined potential to generate more than R720 million of investment within the tourism sector if successfully implemented, and to create or save more than 1 500 jobs and benefit in excess of 6 700 households. These tourism projects include, the Barokologadi CPA near the world famous Madikwe Game Reserve in the North-West, Kgalagadi in the Northern Cape, and Bhangazi at the iSimangaliso Wetland Park in Kwa-Zulu Natal, among others.
We have been acutely mindful that often the euphoria that accompanies the restitution of land after a successful land claim is awarded is often followed by despair as claimant communities lack the resources to put their land to productive use.
It is for this reason that we developed a tailored partnership model – CPPs – to facilitate mutually beneficial partnerships between land reform beneficiary communities and private investors.
CPPs are established between communities that acquire access to land under the land reform programme and private parties. Typically, the communities bring their land and labour, and the private partner brings capital, skills and access to markets to the partnership. CPP contracts are structured to ensure that the partners are able to meet their obligations and exercise their rights in a manner that supports the profitable operation of the business ventures they enter into.
We have implemented CCPs for some communities with resounding success. The Kgalagadi community located in the Kgalagadi National Park in the Northern Cape is a case in point. After the return of a disputed 45 000-hectare tract of land to the Khomani SAN, Vumelana Advisory Fund deployed their transaction advisors and modelled a partnership between the Khomani SAN community and SANparks wherein both entities are developing a 28-bed lodge, named after the late David Kruiper, one of the leaders who were instrumental in the community’s land claim.
The lodge is expected to play an important role in revitalising the local economy and supporting emerging businesses in a desolate area that is far removed from mainstream economic opportunities. The facility is envisaged to employ at least eight permanent employees and create a number of additional part-time jobs.
The Miers Community – who also lodged a claim in the Kgalagadi National Park – now co-owns a 25-bed four-star lodge on the land named !Xaus Lodge. Through the partnerships we have facilitated for this community, !Xaus Lodge currently employs 19 permanent staff members from both the Khomani SAN and Mier communities.
Another shining example of the positive impact of land reform on beneficiary communities is the work we have done with the Barokologadi community adjacent to the Madikwe Game Reserve. We supported the community in identifying a commercial investor for the development of tourism lodges on the land next to Madikwe Game Reserve. To ensure better access to the “Big 5” environment inside the reserve, the Barokologadi CPA, the landholding institution established under law to acquire and manage the beneficiary land on behalf of the community, agreed to incorporate the development area, which covers over 5 800 hectares, into Madikwe Game Reserve.
While incorporation was put on hold, a game reserve owned by the community has been established. The project has already yielded 30 permanent jobs, over 60 part time jobs, and 30 learnership opportunities targeting the youth. The community has also established a Training Institute. To date 130 learners have been supported through accredited learnerships whilst a new cohort, comprising 60 new learners have been enrolled during September 2024.
The land claim lodged by the community of Makuleke in Mpumalanga was finalised in 1998, paving the way for their ownership of 24 000 hectares of land in the Kruger National Park. Since the finalisation of its claim, the community has benefitted from tourism projects in the park. The community has a co-management agreement with SANParks and has also established partnerships with private partners.
The Makuleke CPA currently has two lodges, Return Africa and The Outpost, and a training institution, Makuleke Eco-Training. Some 70% of the workers at these three facilities come from the local community. The Makuleke CPA has also established partnerships with training institutions that focus on conservation and hospitality. These include the South African College for Tourism which offers hospitality training; the Southern African Wildlife College which provides field ranger and conservation-related studies like community-based natural resource management and responsible resource use; and the Tracker Academy which focuses on field guiding.
While naysayers may argue that these examples are few and far in between, they showcase that when the land reform programme is managed correctly, it can be a catalyst for economic revival. There is little doubt that land remains an emotive issue in South Africa. The prospects of achieving social cohesion cannot be complete if this issue is not adequately and effectively addressed.
As Vumelana Advisory Fund, we have contributed towards changing the narrative of the land reform programme in South Africa as total failure. We believe that land reform still has an opportunity to turn the corner and give impetus to meeting the country’s social and economic imperatives. There is a need to upscale these interventions in order to maximize impact. This requires closer collaboration between ourselves and like-minded organisations, government and the private sector.
Considering some of the success stories that do not make headline news, it may well be that the narrative around the total failure of the land reform programme is after all, greatly exaggerated.