Empowerment programme takes shape

and communities having already started acquiring shares in foreign owned mining firms.
President Mugabe last week launched the Zimplats Mhondoro-Chegutu-Zvimba communities share ownership scheme, setting the tone for similar schemes in other mining communities dotted across the country.
Zimbabwe’s biggest platinum miner has also provided US$10 million to kick start the share ownership trust that will administer the share scheme.

Next it will be the Marange, Hwange Colliery and Mimosa community share ownership schemes, which have potential to transform these areas for the better.
While only a handful of the share schemes have been lined up, Government said the initiatives will be rolled out across all mining areas starting next month, as the broad based empowerment programme scales new heights.
Arguably, mining companies have done little to develop communities in which they operate, leaving degraded and ghost towns when minerals mine out.

Cases in point include the Mhangura and Kamativi mining communities.
Going forward, mining communities would now be able to see the benefits of the empowerment drive albeit other people still think the initiative is an asset grabbing exercise to benefit a few and certain political constituencies.

Admittedly, it would be critical for the Government to establish effective structures to monitor the rolling out of the empowerment initiatives or else they fall victim to the whims of greedy and unscrupulous individuals.
Without doubt, if rolled out in the envisaged manner the share ownership schemes will transform all communities across the country in a big way,.

It was heartening to note that Indigenisation and Empowerment minister Saviour Kasukuwere was cognisant of the fact Government resources were insufficient to meet the needs of communities across the country.
“Communities must directly benefit from their God given natural resources. Hitherto, communities have been largely depended on resources from Government and donors for provision of the much needed social infrastructure and for their general livelihood,” said the minister.

“Such funding has generally been insufficient to meet the needs of our communities. So our communities failed to mature to take charge of their own programmes.
“Governors and our local leadership shall play a leading role in the administration of empowerment schemes in rural areas,” he said.
In this regard, he has put in place measures that will enable ordinary Zimbabweans to own in part companies that extract resources in their communities.

Proceeds from the ownership of such resources will be channelled towards social and infrastructure development of these marginalised communities.
But an eye needs to be kept on the leadership of trusts that will identify priorities such as road, water, health and educational facilities that should be funded from the proceeds of communities’ shareholding in mining firms.

This will be critical considering indigenisation has largely been viewed in negative context, that is, as a project advancing certain political interests. As such, the benefits of this programme should be there for cynics to see.

Interestingly, Minister Kasukuwere on Tuesday pointed out the fact that all mining companies, locally or foreign owned, would be required to implement the employee share ownership schemes to empower the workers.

Further, the objectives of the indigenisation and empowerment programme have started taking real shape, as the Government will also roll out worker share ownership schemes in non-mining foreign owned firms.
By the way, all foreign owned companies are required, in terms of the Indigenisation and Economic Empowerment Act gazzetted in 2008, to cede for value, at least 51 percent stake to indigenous black Zimbabweans.

As such, foreign owned firms are required to transfer 5 percent to workers and 3 percent stakes to management in part fulfillment of indigenisation requirements.
The general thrust of the empowerment programme would also see the workers and management at Old Mutual Zimbabwe, FMI Energy, Schweppes Zimbabwe and Murowa Diamonds becoming shareholders in these firms.
Old Mutual has even gone a step further in empowering locals by availing US$11 million for youth and small to medium enterprise projects.

This adds to the 25 percent given to workers, management and pensioners.
Minister Kasukuwere has tentatively set the beginning of next month to roll out employee and management share schemes.
Government has often argued that indigenisation and empowerment is not an attempt to expropriate or nationalise foreign assets, but a process to bring previously disadvantaged locals into mainstream economic

activities.
Yet critics of the initiative, while admitting the programme was noble argue its implementation has scared away potential investors.
But a closer look shows distorted reporting in international media created misconceptions.

To equalise the empowerment programme across the country the Government will be setting up a sovereign wealth fund that would help develop the communities where there are no mining activities taking place.
This would entail development of critical socio-economic infrastructure such as schools, hospitals, roads, irrigation schemes and agriculture activities.