As South Africa continues to debate how to make land reform truly productive, one crucial truth stands out: for restituted land to become a lasting source of opportunity, community ownership must extend beyond simply transferring land. It must include ownership of the processes, governance, and decisions that determine how that land is managed, developed, and sustained for the benefit of its beneficiaries.
According to the latest Community Property Association (CPA) annual report, 82% of South Africa’s 1,700 CPAs fail to submit their annual reports and essential governance documents on time — including proof of annual general meetings, updated committee structures, membership lists, and financial statements. This lack of compliance and administrative discipline remains one of the most significant challenges facing CPAs today.
“We need to move away from just talking about how to strengthen CPAs and start putting proven methodologies into practice. The challenge is not that we don’t know what to do — it’s that we’re not doing it,” says Peter Setou, Chief Executive of the Vumelana Advisory Fund, a not-for-profit organisation helping land reform beneficiaries put their land to productive use.
Building Institutions, Not Just Policies
The Communal Property Associations Amendment Act of 2018, which came into effect in 2024, was designed to tighten oversight through the creation of a CPA Office and a formal Registrar of CPAs. While Setou supports the Act’s intent, he emphasises the need for a responsive regulatory approach that balances enforcement with collaboration.
“Compliance must be enforced, yes, but we also need flexible, escalating responses and mechanisms like community advisory boards to encourage dialogue with the Regulator,” he says.
Setou explains that managing a CPA is akin to running a small country — committees must oversee defined territories, meet diverse member needs, and maintain institutional continuity despite frequent leadership changes. Many committee members, however, lack the skills, training, and resources required for this level of governance.
Simplifying Compliance
“The first step towards compliance,” Setou notes, “is to define and break down regulations into clear, simple steps that CPAs can easily follow.”
He calls for structured capacity building, institutional support, and the creation of an accredited panel of advisors to help CPAs with governance, transparency, and accountability.
To strengthen oversight, Setou proposes introducing compliance notices, binding directives for non-compliant CPAs, and periodic inspections to verify and improve practices. Self-reporting mechanisms, where CPAs submit annual returns to track their own progress, would also foster accountability.
Technology and Incentives Can Drive Change
Vumelana further suggests using compliance management software to automate reporting and monitoring, along with defined performance indicators (KPIs) to measure each CPA’s progress.
“For land reform to succeed,” Setou stresses, “CPAs need to be well-governed, transparent, and have clear systems for benefit-sharing and dispute resolution among members.”
Over the past 13 years, Vumelana has partnered with over 50 CPAs across South Africa. Through its Community Private Partnership (CPP) model, it has facilitated 26 partnerships with private investors, mobilised nearly R1 billion in investments, brought 72,000 hectares of land into productive use, and created more than 2,500 jobs.
Setou notes that CPAs with resources to hire administrators consistently perform better than those relying on volunteer committees for critical functions such as financial management and record keeping.
Rewarding Good Governance
Incentives also play a vital role. “When Vumelana introduced CPA awards, communities were motivated to comply because winners received cash prizes to improve operations,” says Setou.
He recommends ring-fenced funding to reward high-performing CPAs and to finance ongoing institutional support through credible advisory entities.
“Support without authority is like pushing on a piece of string — progress stops the moment you let go,” concludes Setou. “To make land reform truly work, compliance and support must go hand in hand.”
