Community empowerment trusts policy marks turning point in rural industrialisation drive

Judith Phiri,  Zimpapers Writer

ZIMBABWE’S efforts to come up with a Community Economic Empowerment Trusts (CEETs) policy marks a pivotal point in Government’s rural industrialisation agenda that speaks to the aspirations of Vision 2030.  

The CEETs are a recent evolution of the earlier Community Share Ownership Trusts (CSOTs), shifting from simple shareholding to production-focused rural industrialisation. 

These aim to drive inclusive growth by leveraging local resources, setting up Village Business Units (VBUs) and attracting investment for agro-processing and industrial parks, supported by legal alignment with the Indigenisation Act to ensure transparent, community-benefiting development. 

Learning from other countries’ CEETs success stories, Zimbabwe’s CEETs will ensure communities benefit directly from mining and agriculture through revenue sharing and project development, aligning with President Mnangagwa’s “leaving no one behind” vision. 

Speaking at the recent CEETs Policy Dissemination Workshop in Bulawayo, Industry and Commerce Minister, Nqobizitha Mangaliso Ndlovu said Zimbabwe was learning from the best practices around the globe. 

“Successful community empowerment models exist globally and we must emulate their governance standards. Next door we have the Royal Bafokeng Nation (South Africa),” he said. 

“They converted their mineral rights into a diversified investment holding company. They built roads, schools and stadiums not through charity, but through dividends from their commercial assets. 

“Internationally, we have the Alaska Permanent Fund from the United States of America where Revenue from oil is invested, and part of the dividends are paid to residents.” 

Ndlovu described CEETs as a stepping stone to building of truly empowered local communities and an inclusive, as well as sustainable economy that will develop Zimbabwe, while allowing opportunity for the realisation of communities’ full potential. 

He said the CEET initiative rested on a robust six-pillar framework that included policy shift from CSOTs to CEETs; one district, one CEET initiative; revenue sharing, rural industrialisation and local enterprise development; strong governance and administration. 

“Let me reiterate that we are not completely abandoning the Share Ownership model as we have witnessed positive tangible community development and empowerment from some successful Community Trusts. 

“We have seen the success stories from the Mhondoro,  Ngezi, Chegutu, Zvimba and Gwanda Community Trusts only to mention a few. These have been flagship Trusts that we can emulate and outline as benchmarks for the potential possessed by communities when fully supported,” he added. 

In a virtual presentation on Revival of CEETs — Zimbabwe, Black Business Council (South Africa) president, Mr Elias Monage said CEETs charge a bold new path to the future. 

“With Zimbabwe establishing a CEETs policy, the country reaffirms a principle that is essential to Government and will ensure communities are active participants and not just passive observers of economic development that takes place on their end and in their name,” he said. 

“It is within that context that many leadership volunteers the significance of this movement or moment. The viability of CEETs is a powerful signal to demonstrate that resources translate into near tangible benefits for the people.” 

Mr Monage said across Southern Africa, they were witnessing new policy growth that support CEETs through local beneficiation and community ownership. 

He said Zimbabwe’s decision to revitalise CEETs was timely and acknowledges the original intent of the Indigenisation and Economic Empowerment Act. 

These create the foundation for a stronger or critical system, while taking into account lessons learned from the past in the CSOTs to build successful and resilient CEETs. 

“Many trusts have struggled because of their governance framework, funding inconsistent, accountability mechanisms were unclear and structures were not available widely among districts. 

“These challenges are not unique to Zimbabwe, in South Africa, we have seen similar issues in mining community trust structures,” added Mr Monage. 

“The lessons across the region are clear. Good intentions are not enough because strong institutions are not making empowerment deep. The promise of community empowerment is an economic trust. The revitalisation of the CEETs addresses past failures from mismanagement and weak oversight.” 

Mr Monage said they will ensure local communities benefit from natural resources through stronger governance, new legal frameworks and a focus on investment, value addition (like agro-processing) and local enterprise development. 

Mrs Petronella Masunda from the Ministry of Industry and Commerce, said CEETs are registered with the Registrar of Deeds, with the Founder of these Trusts being the Minister responsible for Indigenisation and Economic Empowerment. 

“CEETS, which operate within the framework of their deeds of Trust have been mandated to fulfil various socio-economic development objectives. The policy and procedures provide guidelines to CEET members in their day-to-day administration of the Trust,” she said. 

“You will also find general rules and regulations that control the relations between the community and the Trust. The policies and procedures should complement not replace the deed of Trust, while the Economic Empowerment Unit shall ensure that the policy and procedures are reviewed and amended regularly to meet the CEET’s changing needs.” 

She said the beneficiaries of the Trust are residents of the district for which a CEET has been established. 

Mrs Masunda said at all times the board, its members and\, staff shall act in the best interest of all beneficiaries of the CEET. 

“The board shall ensure that the beneficiaries, including women and youth, of the Trust are consulted to give their input in all development projects/initiatives that the Trust will pursue. 

“The board should hold ‘needs assessment’ meetings in the first month of every financial year,’’ she added. 

“‘Feed-back’ meetings should be held in the eleventh month of the financial year at ward level. Such meetings shall be led by the Trustee, with at least one Chief being present. The Trust can engage an expert to facilitate such meetings.” 

CEETs in Africa show mixed results, with successes in building schools/clinics and infrastructure (boreholes, roads) funded by mining revenue, but also significant challenges including fund mismanagement, corruption and limited tangible benefits for some communities, with recent shifts towards rural industrialisation. 

Some, like the Ubuntu-Botho Trust (South Africa), have seen massive financial success, but many struggle with implementation and governance, highlighting the need for stronger frameworks to ensure genuine empowerment. 

 

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