Online Reporter
Herald Reporter
Government will revive the Community Share Ownership Trust (CSOT) programme, which aims to economically empower and ensure that communities benefit from the extraction and exploitation of natural resources within their jurisdictions, a Cabinet Minister has said.
Addressing the media at a post-Cabinet briefing in Harare yesterday, Information, Publicity and Broadcasting Services Minister Dr Jenfan Muswere said Cabinet had approved proposals for the operationalisation of the Community Share Ownership Trusts and Reserved Sectors policy, which will give impetus to the programme.
Dr Muswere also said the Government will undertake a review of the implementation framework and provide support to struggling trusts.
“Cabinet considered and approved proposals on the operationalisation of the Community Share Ownership Trusts and Reserved Sectors policy,” Dr Muswere said.
“Community Share Ownership Trusts were established to ensure that local communities benefit from the extraction and exploitation of natural resources within their areas.
“In accordance with the legislative framework promulgated in 2013, sixty-one (61) Community Share Ownership Trusts were established, with 58 subsequently being registered.
“To revitalise the Community Share Ownership Trusts programme, the Government will undertake a comprehensive review of the implementation framework and provide corporate rescue support to struggling trusts.”
Dr Muswere also said the Government will develop measures to ensure effective and transparent management of Community Share Ownership Trusts.
“A robust economic empowerment policy and regulations will be developed to ensure effective and transparent management of Community Share Ownership Trusts,” Dr Muswere said.
“Additionally, efforts will be made to publicise the existence of Community Share Ownership Trusts and ensure comprehensive audits of fund utilisation.”
Community Share Ownership Trusts were established by the Government in line with the indigenisation and economic empowerment legislation and policy frameworks as part of the national strategy to achieve broad-based indigenisation of the economy and economic empowerment of the previously disadvantaged communities.
Under the programme, community trusts acquire equity on behalf of their respective communities in companies involved in the commercial exploitation of natural resources in their areas.
Over the past years, most trusts have collapsed due to failure by the companies to operationalise them through seed capital, leaving host communities counting losses brought by the impact of mining on the environment.
