Rural Economies in Focus as Traditional Leaders Back New RACC Initiative

GA-PHAAHLA

A new initiative aimed at bringing economic opportunities closer to rural communities has been launched, with traditional leaders expected to play a central role in driving development in areas such as Sekhukhune. Speaking at the launch, Kgoshi Letsiri Phaahla said the move is intended to ensure rural communities are no longer side-lined in economic discussions but become active participants in South Africa’s economy.

The Royal Authority for Commerce and Charters (RACC), unveiled in Sandton on Monday,  is being positioned as a platform to link traditional leadership with business, investment, and governance systems. It is expected to unlock enterprise development, job creation, and investment in provinces like Limpopo.

Hosted at Regenesys Business School, the launch brought together traditional leaders, government stakeholders, and private sector representatives focused on unlocking economic value in rural areas while preserving cultural identity. A key moment was the signing of the RACC framework by Nicholas van Wyk, CEO of the Chartered Institute for Business Accountants (CIBA) and also vice Chairman of RACC, Jimmy Gotyana, National Convenor of the Alliance of NPO Networks (ANNET) and National Dialogue Steering Committee Member and also Prince Manene Tabane, spokesperson for the Mte Royal Family and national organiser for ROLESA. The trio is marking a partnership between professional institutions and traditional leadership.

Van Wyk described RACC as “a transformative bridge between customary governance and the formal economy,” highlighting the need for credible systems that enable investment, accountability, and long-term sustainability. Tabane stressed restoring the economic agency of traditional institutions, saying the framework allows heritage to translate into meaningful economic participation without compromising identity.

Gotyana called the platform historic, noting it is the first formal mechanism designed to directly connect royal leadership with the economy through governance and accountability. “For too long, traditional leadership has been recognised culturally but excluded economically,” he said, adding that partnerships with corporates such as Old Mutual, ABSA, Metropolitan, and Vodacom are key to unlocking inclusive growth.

The initiative is guided by strategic pillars including a development vision rooted in traditional leadership, a governance and trade facilitation platform, and the Royal Charter Framework to standardise compliance and investment protocols. Discussions also encouraged businesses to engage communities through transparent investment channels.

A central theme was positioning heritage, land, culture, and indigenous knowledge as economic infrastructure capable of driving sustainable growth. Kgosi Selabe Masibi, president of ROLESA and chairman of RACC described the launch as the start of a broader movement to build an ecosystem where tradition and commerce coexist.

Sepheu Tau Masemola, National Heritage Council of South Africa, Chairperson said RACC formalises a long-overdue bridge between cultural systems and economic participation. “The Royal Charter Certification Framework introduces a new standard aligned with cultural legitimacy and ethical accountability,” he said, adding that it builds on programmes like the African Liberation Heritage Programme.

From a private sector perspective, Samkelo Mdlalose, National Sales Leader at Old Mutual said traditional leadership structures remain central to community life. “When organisations engage them respectfully, the potential for lasting impact is significant,” he said, noting governance structures ensure trust, accountability, and transparency.

In closing, Ngwato a Phogole, Kgoshi Phaahla described the initiative as a milestone for both traditional leadership and national development. “This collaboration promotes inclusivity and advances rural development,” he said. “Rural communities have been marginalised for too long. RACC arrives at the right time to reposition them as active participants in the economy.”

RACC is expected to roll out pilot programmes nationally across selected traditional authorities, focusing on governance support, enterprise development, and investment facilitation as the country seeks more inclusive economic growth.

By Noko Mashilo