eBusiness Weekly
The debate around land expropriation without compensation has dramatically cooled off since the middle of last year when the topic was on just about every South African’s lips.
The topic briefly made the headlines again this week with President Cyril Ramaphosa and Deputy President David Mabuza receiving the final report of the Presidential Advisory Panel on Land Reform and Agriculture.
But it’s clear that well into 2019, South Africa has fresh challenges with these most notably being a new national government settling in after the sixth democratic general election and a struggling economy that is in desperate need of a turnaround.
Interestingly, one way to create much-needed jobs in our economy potentially rests with equitable land reform combined with a venture capital investment initiative such as Section 12J.
This is exactly what has transpired with a one-of-its-kind Section 12J project called Mdluli Safari Lodge, situated in the Kruger National Park.
The story with Mdluli Safari Lodge starts in 1960s Apartheid South Africa when the Mdluli Community were forcibly removed from their land inside the borders of the Kruger National Park.
It would only be decades later, after the dawn of democracy in 1994, that the Mdluli Community would undergo a successful land claim process to secure freehold title to the 850 hectares that they were previously removed from. The land today is registered under the Mdluli Community Trust.
Looking to maximise economic opportunities from their land, the Mdluli Community decided to enter a partnership with the private sector via Mdluli Safari Lodge — a 12J-backed hospitality venture that officially opens its doors in October this year.
Mdluli Safari Lodge will feature 50 luxury double air-conditioned én-suite tents, private patios, indoor and outdoor showers as well as an elevated 360-degree viewing deck atop a large rock formation. As a result of working closely with the South African National Parks (SANParks) and the Kruger National Park (KNP) regulations and requirements, other key features include an eco-friendly, sustainable design that has sought to ensure minimum impact on the existing environment.
Opportunities, income
The project is viewed as a good venture for investors and the community, especially as there is a shortage of affordable luxury accommodation options inside the borders of the Park.
The Lodge, which is underwritten, will also be managed by Nkambeni Safari Camp, a division of Tourvest Accommodation and Activities, South Africa’s largest inbound tour operator. The Lodge is expected to create new job opportunities, uplift the community and generate sustainable income for the Mdluli Community.
Tourvest recently announced at the recent African Travel Indaba 2019 in Durban that it’s investing a meaningful amount in the Mdluli Safari Lodge project.
The total investment in the project now stands at R34m, with more opportunities for investors to still enter the project. The realisation of this multi-year project has all been made possible with Section 12J and thanks to the backing of The Grovest Group, which is South Africa’s most-experienced promoter in the 12J space.
Members of the Mdluli Safari Lodge board include Nelly Mdhluli and Buyile Mdluli as non-executive directors as well as experienced corporate veterans Malcolm Segal (non-executive director) and Nick Dennis (non-executive chairman).
◆ Darryn Faulds is Fund Manager, Mdluli Safari Lodge.
