Rural anti-poverty plan stuck in red tape
December 17, 2006
By JONATHAN HOBDAY
Most reasonable people would not dispute the contention that the single biggest challenge facing the new South Africa is the need to tackle, effectively and rapidly, the problem of pervasive poverty.
This is a challenge demanding creativity, determination, vision and money. It would have seemed, then, a dream come true when a project was proposed for an impoverished peri-urban area that promised to attract R3.5 billion in investment, which would create 2 570 permanent jobs (where there are now only 270) and that would generate 10 000 temporary jobs during its five-year development phase.
The project also delivered a solid empowerment partnership and promised to pump R170 million in land and cash into the welfare of the needy neighbourhood. More than this, it was designed to ensure that historic and cultural icons were placed in trust for the nation, that public open space was secured and that historic farming operations in the area, which were in danger of an economic meltdown, would be sustained permanently.
A dream concept, indeed, a win-win situation by any assessment, a singular initiative in the fight against poverty. Yet, three years after the plan for redevelopment of the historic Boschendal Estate between Franschhoek and Stellenbosch was put forward, it remains mired in a tangle of bureaucratic bungling and patent obstructionism.
The first phase of the plan is for the development of 18 estates of 23ha each; the second phase is made up of a 500-unit retirement village, a 120-room hotel, a residential component of 350 homes and a shopping centre around the old railway station, with most of the building being on areas already developed.
But the dream, for Clive Venning, the man who conceived it, and for his co-investors, is fast turning into a nightmare. "We believe that we have established a prototype for development of sensitive, historic areas like Boschendal," says Venning, who is the chief executive of the estate.
"This development meets all the concerns. It is a model for black empowerment. The company is 30 percent owned by black partners whose share is fully paid for. There is no free ride.
"It meets the environmental criteria. All the agricultural land - orchards, vineyard and olive groves - remains as a viable, integrated farming operation. Development takes place almost entirely only on the existing developed footprint."
The proposal also takes account of historic and cultural imperatives: the manor house and the historic buildings will be retained and placed in trust to the nation. All the public open spaces are retained. Nature reserves will be developed.
Perhaps most importantly, the project promised upliftment of the poor communities that live in the area. In terms of the scheme, 5 percent of all land sales and 0.5 percent of all resales would go into a trust set up especially for these communities. "We estimate that will generate R120 million cash for the people concerned. More than 10 percent of the land, totalling 270ha, will be donated to consolidate the villages in the area," Venning says.
The plan aims to make the historic, 320-year-old Boschendal Estate - a little piece of paradise in the Cape winelands - into a sustainable and productive development with barely any negative impact on the environment or rural ethos. So, if all the pieces of this happy jigsaw have been so carefully and properly fitted together, why does it present such a dismal and disjointed picture?
The answer is fairly simple: the bureaucratic and legal processes required for obtaining approval are so convoluted, time-consuming and costly, that a small group of objectors can hold the development hostage seemingly indefinitely. Added to this, a bureaucratic bungle is now causing further unnecessary delay.
Venning explains: "We have done all the required environmental and planning assessments and obtained all the necessary approvals from the appropriate national and regional government authorities. We received the approval of the Stellenbosch municipality and national and regional agriculture in May 2005, subject to comment from the SA Heritage Resources Agency (Sahra).
"There were three objections. We responded by undertaking a heritage impact study and produced a 500-page report on the issue. Eventually, in February 2006, Sahra approved the plan … Then came another shock. It appears that Sahra's council's term of office had expired and that it was not properly constituted, so Sahra couldn't answer the second set of appeals. The matter is now in the hands of Dr Pallo Jordan, the minister of arts and culture."
Meanwhile, the innovative plan for development of Boschendal waits and waits. The hopes of the poor communities of villages such as Pniel, Languedoc, Klemore, Groot Drakenstein and Johannesdal, who are fully behind the project, are also on hold. But the waiting will not be forever.
"We are investors, whose object is to make a return on our investment," says Venning. "At the moment, the delays are costing about R2 million a month and the total bill is now more than R48 million. There is only so long before investors begin to go think about ways of cutting their losses and enhancing their investment. Some investors have already moved on, although they have been replaced by one major investor from the Middle East, IFA Hotels and Resorts.
"Fortunately, the purchase of Boschendal - for a sum of R323 million back in 2003 - was a very good investment. The land has appreciated in value. The total area of 2 240ha consists of 26 separate farms and it would be a simple fall-back plan to sell these off one by one and recoup our investment."
But that would a great loss to many. It would mean the end of the empowerment initiative; the community would get nothing; and the general public would lose because the estate would probably go into private ownerships, closing off access to park land, nature reserves and historic places.
Venning hopes that it will not come to this. At best, the process of reconstituting Sahra and dealing with the heritage approval seems set to take a few months more. "We are entirely in the hands of the minister on this one." And, even if the minister acts with dispatch and proper approval is granted by early next year, objectors could delay the matter for anything up to 18 months by going to the Cape high court.
"I not sure how much longer investors will put up with this … we are still determined to go ahead. But patience is wearing thin."
So Venning is being forced to consider plan B while seeking ways to fast-track the process. For one thing, he intends meeting again with the three objectors - the Institute of Architects, the Franschhoek Trust and the Paarl Trust - to seek ways out of the morass.
He is also hoping that the government will take decisive action. But he warns that by the next board meeting - in February next year - investors could well have taken a different view, especially if it looks as if the process could drag on interminably - perhaps for another two years.
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