Demystifying Community Share Ownership Trusts

 

being shouldered by some of us to date.

At times lack of clarity of these noble initiatives being done by Government stems from the de-campaigning and onslaught of such programs by Britain, USA and their EU allies, who have vested interests in the country’s vast and abundant natural resources.

The principle of community empowerment is a calculated remedy to the historic socio-economic deprivation and disadvantages imposed on rural communities by colonialism’s racial discrimination.

What historic and socio-economic deprivation and disadvantages are we talking about?
This is a question that most people would like to be answered; unfortunately there is no readily available historical literature detailing these socio-economic injustices that were supported by colonial legislation.

The Masters and Servants Act, Land Bank Act, Industrial Conciliation Act, Maize Control Act, European Produce Act, Land Husbandry Act and many more such acts are proof of the socio-economic disadvantages that have necessitated these empowerment initiatives as Government seeks to address colonial imbalances.

It is through the realisation that local communities, whose natural resources are being exploited, must have a say through guaranteed shareholding in these companies.
The Government’s Indigenisation and Empowerment Act Chapter 14:33 aims to intervene and restore to rural communities the expropriated natural resources and guarantee them an  equitable share in their nation’s economic wealth and prosperity.

To ensure such prosperity the Indigenisation and Economic Empowerment Act chapter 14:33 section 3 (1) mandates indigenous Zimbabweans to control at least 51percent of the shares of every public company and any other business shall be owned by indigenous Zimbabweans.

Sceptics and detractors have been quick to question the allocation of 51 percent shares to Zimbabweans and the legality of Community Share Ownership Trusts.
Contrary to these assumptions, negative views and misplaced allegations Community Share Ownership Trusts were established under the laws of Zimbabwe to ensure that the majority of indigenous Zimbabweans own and benefit from their natural resources.

It is a wrong assumption by certain quarters of society to claim that such programs are just election campaign tools being used by political parties.
Instead, they must be seen for what they are, that  is they are empowerment programs to benefit all. To guarantee broad based economic participation and benefit, the National Indigenisation and Economic Empowerment Board (NIEEB) is facilitating the launch of Community Share Ownership Trusts (CSOT) in every district countrywide.

Qualifying businesses exploiting natural resources in those areas are expected to cede 10percent shareholding to the local community while injecting seed capital to enable the Trusts to begin their functions.

It must be noted that 70 percent of the country’s indigenous population resides in rural or local communities and hence their empowerment can only be consolidated through ownership of shares in companies exploiting natural resources in those areas.

Section 14B of the 2010 regulations makes specific provisions for CSOTs as a mechanism through which the majority of indigenous Zimbabweans can secure shareholding in businesses exploiting their resources.

NIEEB is of the opinion that Community Share Ownership Trusts are an example of how local communities across the country can positively transform their socio-economic being by using revenue directly obtained from ownership of their natural resources.

CSOTs comprise of a deed of trust presided over by trustees who include chiefs and local Government representatives and various interest groups in the community, their objectives being to facilitate development and stimulate growth of the local economy.

Such objectives include building and maintaining roads, dams, clinics, schools, dip tanks, and promoting self-help, empowerment and skills development projects. This is an opportunity for communities to become self-sustaining as highlighted by President Mugabe at the launch the Mhondoro-Ngezi Community Share Ownership Trust when he said:
“Communities are bound to lose confidence in themselves and continue to always look towards Government and the donor community for social, economic and infrastructure development and a general improvement in their livelihood.

“Genuine empowerment begins with making own decisions as opposed to being perpetual observers or bystanders and recipients of charity acts,” President Mugabe said.
True to these words, communities that have benefited from ownership of their resources have taken a lead towards meeting Millennium Development Goals such as universal primary education, reduction of child mortality and improving maternal health.

Progressive Zimbabweans must come together in full support of these Government initiatives and reject the Donor Syndrome that has become the perennial plague of many developing world countries.

The communities that used to rely on donors will soon be self-reliant, genuinely empowered and be able to make their own decisions through CSOTs.
Of interest is the Tongogara CSOT, which has managed to buy a mounted drilling rig which can drill a minimum of four 50-metre boreholes per day. Basic calculations will show that this community will never be shortage of clean and safe drinking water for years to come, not to mention other numerous projects that have been undertaken for this community.

What better empowerment programs than Community Share Ownership Trusts do we need as a society to really appreciate Government’s efforts in addressing  colonial injustices?

Our country is currently undergoing a socio-economic revolution and let us not be pulled down by negative comments from sceptics and foreigners bent on derailing our achievements.

Rural and local communities can now take control of their own development with dignity and pride.
President Mugabe’s assertive stance on matters of empowerment must be commended and supported by all Zimbabweans from all walks of life.

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