Comment: Firms defying share ownership scheme laws must stop operations

zimplogoThe Government-initiated Community Share Ownership Scheme is already benefiting many communities. Under the Scheme, companies exploiting natural resources in a given area cede ten percent of their shares to local communities. The communities then use the proceeds from their shares to fund implementation of community development  projects such as building schools, clinics, rehabilitation or establishment of irrigation schemes, construction of roads and bridges, drilling of boreholes or sinking of wells and many other such community projects.

The communities already enjoying the fruits of the community share ownership scheme include Shurugwi villagers, Zvishavane, Mhondoro/Ngezi, Gwanda and Masvingo.

Companies that have already contributed seed capital to the schemes include Unki Mines in Shurugwi, Mimosa Platinum Mine in Zvishavane, Murowa Diamonds also in Zvishavane, Zimplats in Mhondoro/Ngezi, Blanket Mine in Gwanda and Pretoria Portland Cement in Matabeleland South.

In Shurugwi where Unki Mine has paid up its $10 million pledge, the district used the money to fund the construction of Msasa primary school among the many projects it has so far implemeted. In Gwanda the fund has rehabilitated irrigation schemes, funded the completion of some clinics as well as improve water supplies to public  institutions such as clinics.

The community share ownership scheme is enabling communities to benefit directly from the exploitation of their resources hence the immediate benefits being witnessed by communities where these schemes have been established. We have said it before that we do not want a situation whereby benefiting from the exploitation of natural resources is dependent on the willingness of companies to participate in the scheme.

All companies exploiting our natural resources should be compelled to participate in the schemes so that communities benefit. The Government has already come up with a national fund meant to assist those communities that do not have natural resources such as minerals to also benefit from the country’s natural resources.

It is against this background that we want to applaud Government’s moves to compel those companies that are yet to participate in the schemes to do so.

Last week Government gave Vumbachikwe Mine in Gwanda a 21- day ultimatum to comply with the Indigenisation Act which among other things compels companies exploiting natural resources such as minerals to cede 10 percent of their shares to local communities.

The mine is reported to be resisting contributing to the community share ownership scheme. We are not privy to the reasons that the mine is advancing for resisting this Government initiative meant to benefit communities.

What however the mine should appreciate is that the Government is trying, through this initiative, to correct past anomalies whereby communities lived in abject poverty while foreign companies looted their resources to develop their countries of origin. The companies that are reluctant to share the resources with local communities should therefore be stopped forthwith from exploiting the resources.

What should be made clear to these companies that include Vumbachikwe Mine is that there is no going back on the community share ownership scheme so they either comply or ship out.

The Government should be very decisive just like what it did to the white farmers that were resisting the land reform programme. Those that oppose initiatives meant to benefit communities are the people’s enemies and must be treated as such. It is important for companies to avoid unnecessary confrontation with the Government to enable the country to move forward as we battle to turn around the economy.

The country can only succeed in this endeavour if the Government, business and ordinary Zimbabweans have a shared vision regarding our destiny as a nation.

We want to implore companies that are yet to contribute to community share ownership schemes to do so without further delays so that the communities in which they operate start benefiting directly from their resources.

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