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The National Indigenisation and Economic Empowerment Board (NIEEB) says a total of $8 million has been utilised over the past two years by community share ownership trusts (CSOTs) to carry out socio-economic development projects. Speaking at a Corporate Social Responsibility and Creation of Shared Value Indaba recently, NIIEB acting legal and corporate secretary Rangu Nyamurundira said in the past two years 14 operational CSOTs have utilised a total of $8 million for projects.
“To date we have 61 CSOTs in every single district in Zimbabwe. Some are operational and some are not. Right now we have about 14 that are fully operational and are doing their projects.
“Not less than $8 million has been rolled out to 14 trusts that are now operational and they have started doing various projects in their different communities which include horticulture, poultry, road construction and refurbishment, schools, hospitals and other different projects,” he said.
Nyamurundira said out of the $109 million pledged by the various companies towards community share ownership trusts $30 million has been given to them.
He said government has established community share ownership trusts to create a healthy business environment for the communities and companies to work in.
“Community share ownership trusts represent the communities. It is something that the government itself has established and put in place with the representatives of these communities so companies do not have to find it difficult to find ways of working with these communities,” he said.
Nyamurundira said the issue is not only about funding projects but ensuring sustainability for the funded projects. He said the greatest threat to a company is the community, and Zimbabwe was guaranteeing a framework within communities to support investors. “By empowering a community we are empowering the nation. We as a country can offer investors security by providing a framework through community trusts where investors can work feeling secured,” he said
Speaking at the same event, Zimplats head of corporate affairs Busi Chindove said the companies engaging in community trust projects must engage with the individuals from the communities in order to best aid them.
“We understand that companies need to engage more with communities so that company priorities will be in sync with community needs,” she said.
The government launched the CSOTs to empower indigenous Zimbabweans. They are a vehicle for participation in shareholding in various businesses by communities. Money from such participation must be properly accounted for and used in projects which benefit the communities as outlined. – BH24
Online Reporter