Building Trust for Transition: DBSA’s Role in South Africa’s Renewable Energy Sector
This case study examines the role of the Development Bank of Southern Africa’s (DBSA) in supporting and financing community trusts as part of the Renewable Energy Independent Power Producer Procurement Programme (REIPPPP).
It explores how DBSA’s due diligence and oversight, or absence of it, can significantly impact the success or challenges faced by these trusts. It also identifies a best practice framework for REIPPP-tied LCTs, including formal requirements for establishment, administrative functioning, and governance responsibilities.
Within this framework, key transparency, and accountability challenges in terms of ensuring adjacent community benefits are identified as well as associated best practice recommendations that assist in the identification of records, or categories of records, which
could be pursued through strategic information requests.
LCTs offer a promising mechanism for ensuring that the benefits of renewable energy projects are shared equitably with local communities. However, the success of community trusts is highly dependent on transparent governance, effective capacity building, and meaningful community engagement.
As demonstrated by examples in this report, when implemented effectively, LCTs can empower communities, create jobs, and contribute to a just energy transition. However, challenges such as mismanagement and elite capture highlight the need for careful planning, strong governance structures, and the involvement of development banks to ensure long-term sustainability and equitable benefit distribution.
By highlighting both effective and difficult case examples, the study identifies best practices and offers actionable recommendations to improve the sustainability and effectiveness of LCTs.
