The role of community trusts in promoting inclusive local governance

Many mining communities face severe deficits in infrastructure and essential services, especially in remote areas. Local municipalities are often hampered in their ability to resolve these challenges by issues ranging from limited resources and lack of skills to mismanagement and corruption – however, the role of municipalities remains critical in achieving meaningful socio-economic development. As Tshikululu, we recognise that mining companies and community trusts cannot – and should not – take over the role of municipalities, but they have potential to contribute meaningfully towards building capacity at a local level, promoting inclusion and good governance and modelling accountability.

In February 2025, Tshikululu participated in a dialogue hosted by Good Governance Africa, The Resource Exchange and FPIC Solutions Dialogue. The dialogue brought together a panel of experts and researchers from Southern Africa to explore strategies for ensuring the sustainability and inclusivity of the extractive industries. The panel discussion on “Inclusive Local Governance: Leading the Way for Sustainable Local Impact” focused on the role of inclusive local governance in the future of African mining.

Inclusive local governance ensures that all community members and representatives, including marginalised, vulnerable, and under-represented groups, have an equal opportunity to participate in decision-making processes. This approach promotes transparency, accountability, and responsiveness to the needs of diverse populations within the community. In inclusive local governance, efforts are made to ensure that policies, services, and resources are accessible to all. It involves the active engagement of residents, community groups, and other stakeholders in shaping decisions that impact their lives.

Drawing on research and insights from across Southern Africa, the panel explored practical strategies for improving inclusive local governance in mining-affected areas. Tshikululu’s experience in the community trust space led us to identify three core priorities for community trusts looking to play an effective role in this area:

- Effective stakeholder engagement: Community trusts can support inclusive local governance only through a well-developed understanding of community stakeholders – especially under-represented groups – and their priorities. Structured consultations and collaboration with local stakeholders and reputable partners build strong relationships, which can foster mutual trust, create shared ownership of local initiatives, and establish the trust as a reliable local stakeholder.

- Building local capacity and networks: Community trusts are well positioned to invest in building capacity and strengthening leadership at a local level. This can involve developing the capacity of local leaders as well as providing support to marginalised groups and individuals to make sure their voices are heard in decision-making. Trusts can also help to create platforms for engagement to facilitate more inclusive and responsive governance.

- Good governance and accountability: The credibility of a community trust relies in part on its own ability to demonstrate good governance and be accountable to its stakeholders. For community trusts in mining communities, this means compliance with regulatory frameworks like the Trust Property Control Act, tax requirements and the Mining Charter, as well as engaging appropriately with local decision-making structures.

Promoting inclusive local governance is a project for all stakeholders, including community trusts. Strengthened institutional capacity and inclusive decision-making enable municipalities to be more functional and responsive to the needs of their communities. This creates an environment where all stakeholders can work together more effectively to bring about sustainable social impact.

By Shamiso Chideme, Senior Client Relationship Manager

Tshikululu is South Africa’s leading social investment fund manager and advisor, working alongside investors and other development partners to achieve sustainable social impact. More information about our services can be found on our website, or you can contact us at in**@************rg.za.