Companies urged to give back to rural communities

for infrastructural development.
Local Government, Rural and Urban and Development Minister Ignatius Chombo announced this at a handover ceremony of an earth moving machine to Mbire Rural District Council in Harare last week
“At least 10 percent of the company’s profit shares should go towards buying equipment for road construction, building of schools, clinics and community halls.
“It will be paid as levy for using the district’s natural resources which should be benefiting the community,” he said.
The minister was referring to agricultural, mining tourism and other major business companies.
He applauded the relationship between Mbire Rural District Council and the Campfire Association, which has enabled the former to acquire a lot of developmental equipment, inclu-ding a grader.
“I wish all councils and companies could emulate the work that the people in Mbire have done,” he said.
Government last year raised concern over Government officials, politicians and indigenous businessmen across the sectors of the economy who were reportedly being used as fronts for the whites threatening to prosecute them for plotting to defeat the indigenisation programme.
Youth Development, Indigenisation and Economic Empowerment Minister Saviour Kasukuwere warned the business people that the Indigenisation and Empowerment Act prescribes Community Share Ownership Schemes or trusts in businesses that exploit natural resources.
“10 ppercent shareholding in qualifying businesses shall be reserved for the community for the Share-ownership Schemes or Trusts,” he said.
For years Campfire has been paying 45 percent of its profit shares to the local council for infrastructure development purposes and creating employment.
Mbire saved over US$500 000 for equipment including the earth moving equipment for road construction.