Comment: Communities must benefit equally from share schemes

zimplogoMany communities are already enjoying the fruits of the Community Share Ownership Scheme and there are calls for the Government to speed up the establishment of the scheme in areas where communities are yet to benefit. Under the Government initiated scheme, companies exploiting natural resources such as minerals in a given area, cede 10 percent stake to the local community which then uses proceeds from the shareholding to fund development projects.

The scheme has been established in seven of the country’s 10 administrative provinces but not all the districts in these provinces are benefiting.

In the Midlands for example, the scheme has been established in Shurugwi and Zvishavane where communities have already started benefiting. In Shurugwi, money from the scheme has been used to fund among other projects, the construction of Musasa Primary School while in Zvishavane it has been used to fund construction of additional classroom blocks at some schools and many other such projects.

Unki Mine has since paid up the $10 million it had pledged as seed money for the Shurugwi scheme while Mimosa Mining Company has paid part of the $10 million it also pledged for the Zvishavane scheme.

We want at this juncture to emphasise that the Community Share Ownership Scheme is meant to enable communities to benefit directly from the exploitation of their resources.

Government cognisant of the fact that some communities do not have natural resources such as minerals in their areas, decided to come up with a national fund to enable such communities to also benefit from the exploitation of the country’s natural resources.

What this means is that communities that do not have minerals should be able to benefit from the exploitation of platinum in Zvishavane and Shurugwi, gold in Kwekwe, diamonds in Marange, chrome in Mutorashanga and many other such minerals in different areas.

We therefore find it absurd that Zvishavane community is reportedly refusing to cede $5 million of the $10 million it received from Mimosa Mining Company to Mberengwa whose platinum is also being exploited by Mimosa Mining Company.

The National Indigenisation and Economic Empowerment Board (NIEEB) wrote to Zvishavane Community Share Ownership Scheme Trust advising that since Mimosa Mine operations were in the two districts of Zvishavane and Mberengwa, the two districts were supposed to benefit. The NIEEB chief executive, Mr Wilson Gwatiringa, said there was an oversight on the fact that part of Mimosa Mine’s claim also falls within Mberengwa district hence the district must equally benefit.

“We note that the Zvishavane Community Share Ownership Scheme Trust is a beneficiary of Mimosa Mining Company’s implementation of its indigenisation and economic empowerment plan. Zvishavane Community Trust received $10 million from Mimosa Mining Company and was promised 10 percent shareholding in the company.

However, there was an oversight of the fact that part of Mimosa Mine claim also falls under Mberengwa district,” read part of Mr Gwatiringa’s letter.

He said where two or more communities were endowed with natural resources exploited by one company, such communities must benefit equally from the resources.

“This is the precedent that has been set that of broad-based empowerment wherein no one community can claim exclusive rights over natural resources,” said Mr Gwatiringa.

The chairman of the Zvishavane CSOS/T, Chief Mapanzure, said his trust resolved to defy the NIEEB directive to give Mberengwa the $5 million of the $10 million from Mimosa because NIEEB was supposed to engage them first.

The Government’s position is very clear that no community can claim exclusive rights over natural resources and Zvishavane should comply and cede $5 million to Mberengwa.

In the event of the trust remaining adamant, measures should be taken to force it to comply.  Chief Mazvihwa’s trust which is also in Zvishavane is sharing proceeds from Murowa Diamond Mine with Masvingo and we do not understand why Chief Mapanzure and his community are failing to correctly interpret Government position regarding the issue of community share ownership schemes.

We want to once again urge Chief Mapanzure and his community to stop being selfish and enable Mberengwa communities to also benefit from  their natural resources being exploited by Mimosa Mining Company.

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