Online Reporter
Sikhulekelani Moyo, Zimpapers Business Hub
THE Ministry of Industry and Commerce has commenced the implementation of a Cabinet directive aimed at operationalising and revitalising Community Share Ownership Trusts (CSOTs) and reserved sectors.
CSOTs are government-initiated schemes designed to foster empowerment and local ownership, including participation in finite mineral resources. These initiatives are intended to drive socio-economic development in mining areas by reinvesting a portion of mining revenues into public infrastructure and social services.
On June 3, the Cabinet considered and approved proposals concerning the operationalisation of the CSOTs and Reserved Sectors policy.
Dr Thomas Utete Wushe, Permanent Secretary for the Ministry of Industry and Commerce, recently stated that economic development necessitates direct participation and benefit for local communities.
“Community Share Ownership Trusts were conceived as a transformative vehicle to correct this imbalance where people come from wherever, extract resources, and disappear, leaving the communities, who are the owners of those resources, with nothing to show for economic development,” said Dr Wushe.
“So, the Government is now taking a very deliberate stance in policy positioning, emanating from that Cabinet matrix that we discussed. We need to find ourselves feeding back into that paper, which will ensure that we get a robust mechanism for the exploitation of our resources and making sure that our people benefit.”
Through the legislative framework promulgated in 2013,61 CSOTs were established, with 58 subsequently being registered. To revitalise them, the Government will undertake a comprehensive review of the implementation framework and provide corporate rescue support to struggling trusts. A robust economic empowerment policy and regulations will be developed to ensure the effective and transparent management of the trusts.
Industry and Commerce Minister Mangaliso Ndhlovu has previously stated that the frameworks for the CSOTs were developed after it became apparent that the exploitation of natural resources in most rural areas, where 70 percent of the indigenous population lives, was not benefiting local communities.
