Replicate the Bafokeng local economic development model in other traditional communities
This year marks the 100 year anniversary of the promulgation of the 2013 Land Act. This act robbed black Africans of 87 percent of their land and turned them into refugees in their land of birth. The ANC should be commended for returning huge chunks of land to the descendants of the previous indigenous owners through the land restitution policy. When they became the governing party in 1994, they set the land restitution process in motion and thousands of land claims, lodged with the Commission on Restitution of Land Rights, have been settled.
Despite land restitution initiatives, most communities in South Africa are underserviced and still people live in abject poverty. Unemployment is growing and 25% of the population rely on government's social grants.
Many who leave rural areas to look for employment in cities have left huge pieces of unused land that were obtained through restitution. . While land restitution has restored land ownership the anticipated economic benefits to these new land owners have been mixed.
While a few promising family-based agricultural projects are emerging, there are a number of areas where the restored owners have failed to make productive use of land. Failure to use the land for agricultural purposes has mostly been attributed to the state. I find this expectation to be unrealistic; it is not possible for government to provide for all the needs of each citizen and community.
The exploitation of the land is the responsibility of local communities and should not only limited to agriculture. The Barolong, for example, in the North West, intend to work with South African National Parks and North West Parks and Tourism, to establish the first national park in the province to be called the Highveld National Park.
Other traditional communities that own land can derive revenue from other sources such as constructing dams along their rivers and establishing plantations, golf estates and games reserves. They can also provide accommodation through caravan parks, lodges and family chalets.
If communities that had benefitted from land restitution were willing to learn from the experience of other South African traditional communities, then they too could also start to exploit their acquired tracts of land.
For example, the Bafokeng tribe which is situated in Rustenburg, North West Province, have embarked on local economic development by eschewing mining royalties for shareholding opportunities.
The Bafokeng had converted the mining royalties from Impala to shares and thus have become the biggest single shareholder in Impala. Moreover, Bafokeng have also entered into partnerships with the established mining companies in terms of mining projects. For example, they entered into a 50:50 joint venture with Anglo platinum in the Bafokeng Rasimone Platinum Mine (BRPM), with the option for Bafokeng to increase their stake.
They have recently exercised their right and increased their stake. In fact, Bafokeng have also taken over the operation of the BRPM and listed the mine on the JSE. Bafokeng have noted the benefits of joint-ventureship and thus they have entered into another deal with Anglo Platinum for the R10.3 billion Stydrift Project joint venture.
Today, Bafokeng operates within the parameters of their Vision 2020 and the Masterplan. The Bafokeng commercial activities yield a surplus of between R400 million and R1 billion per year.
This surplus is not used to create an opulent lifestyle for the King. Most senior managers and executives in Bafokeng entities earn far more than the King. Will the King possibly demand a higher salary and opulent fringe benefits? No, no, he will never do that. His is a service to his people. You cannot associate the phrase ‘financial profligacy' with him.
He does not live in some exotic palace; he lives in a normal house with normal furniture. His house is in Legato (royal estate) and it is not even called a Palace. The makeshift offices in Legato where the King and the Queen Mother work are not at all attractive.
The commercial returns are used to build infrastructure and to provide social services to the community. It is important to state that the bulk of the surplus is used in the community's educational endeavours. If we are serious about economic empowerment in SA, these are some of the things other traditional communities can learn from Bafokeng.
Bafokeng were able to get financial support from banks because they have well defined community and commercial governance structures. The highest decision making body in the Bafokeng community is a community general meeting called Kgotha-Kgothe.
The Bafokeng King, Leruo Molotlegi, once remarked: "My mandate comes from consulting with this body. The people can overturn my input". Between the general meetings, decisions are taken at the Supreme Council which is constituted of elected community representatives and traditional leaders.
The community assets are not controlled by the King, but are housed within the Royal Bafokeng Nation Development Trust. This Trust stewards the assets such as land, businesses, cash, and other holdings - under a registered entity overseen by a Board of Trustees. The community members, government officials and media are given access to financial and Bafokeng entities' reports. Other traditional communities in SA should also emulate these well defined governance structures so that banks can work with them.
Recently there have been many other communities in South Africa whose land has been found to have mineral deposits. Due to the lack of a proper model and resources, these communities have handed their mining rights to mining companies and in return they are given royalties and some education bursaries. My main concern is that these partnerships yield mere crumbs for the traditional communities. Other than royalties and scholarships, there is nothing for the communities in terms of share ownership.
Modipa is the Founder and Group CEO of Sebata Group of Companies
Click here to sign up to receive our free daily headline email newsletter
