Online Reporter
Judith Phiri Zimpapers Business Hub
PPC Zimbabwe (Private) Limited has said the Gungwe dam rehabilitation in Gwanda District at the tune of over US$335 000 is one of their success story under the Special Community Trust.
In Zimbabwe, Special Community Trust generally referred to Community Share Ownership Trusts (CSOTs) were established under the Indigenisation Act to empower local communities with stakes in resource projects (like mining).
The primary role of these trusts is to facilitate community development and economic empowerment, often through the direct benefit of local natural resources or through donor-funded projects.
The Government has done a major policy shift from the earlier CSOTs to Community Economic Empowerment Trusts (CEETs) in a bid to drive rural industrialisation agenda in line with the National Development Strategy 2 (NDS2) and aspirations of Vision 2030.
Speaking at the recent CEETs Policy Dissemination Workshop in Bulawayo, PPC Zimbabwe Head Legal and Compliance, Mr Tawanda Chiurayi said National Indigenisation and Economic Empowerment Fund (NIEEF) holds 12 percent shareholding in PPC Zimbabwe and is entitled to dividends.
“PPC Zimbabwe entered into empowerment agreement with PPC Zimbabwe Special Community Trust (SCT) in 2023. PPCZSCT acts as conduit for funding CSOTs – entitled to 2 percent of every declared dividend.
“The empowerment agreement is designed to ensure governance and transparency and oversight over proper use of funds for community development,” he said.
“Disbursements to date are US$2.3 million (including of US$815 000 to be paid in December 2025) to NIEEF and US$3.3 million (including US$160 000 to be paid in December 2025) to Community Trusts via PPCZSCT. For PPCZSCT, disbursements are split 50/50 between two trusts namely Umguza and Gwanda entitled to US$1.7 million each.”
On achievements to date, he said a borehole drill rig was purchased by Umguza CSOT and there is drilling of boreholes by the trust.
Mr Chiurayi said there was facilitation of building of fully furnished classrooms (Ntepe High School Science Laboratory) and start-up of community poultry projects by Gwanda CSOT.
“There was also facilitation of education assistance (scholarships) for underprivileged children, borehole drilling, building of clinic (Silikwe Rural Health Centre) and Gungwe dam rehabilitation all by Gwanda CSOT,” he added.
“Gungwe dam rehabilitation is one of the PPCZSCT success story. Gungwe dam was damaged by heavy rains that were received in Gwanda District during the first week of January 2017 that caused the dam to breach. PPCZSCT contributed US$335 667.07 to the project.”
He said key benefits expected to accrue from the dam include provision of water to 3 000 plus households, improvement of small-scale irrigation, provision of water for livestock and wildlife as well as poverty alleviation in Gwanda‘s rural areas.
Mr Chiurayi said it will also ensure food security through market gardening and fish farming, generation of small-scale hydropower for sustainable development as well as job creation and income generation.
On CSOT challenges and lessons learnt, he said: “The challenges include incorrectly constituted boards, resulting in lack of required expertise and more funds being utilised for administration purposes instead of implementation of projects for the benefit of intended beneficiaries. There is lack of accountability as there is a need for funds to reach intended beneficiaries through community development projects that have impact on the communities.”
Mr Chiurayi said there was also promotion of self-sustaining projects so as to ensure continuity in of the CSOTs in future or in the absence of funding parent companies.
He said they have learnt of the need for strong enforceable legal frameworks and local participation to ensure the CSOTs achieve their intended goal of empowering resource rich communities.
“There is also need for annual comprehensive audits of funds usage and public disclosure of financial reports for enforcing checks and balances, building trust, transparency and accountability. Another lesson is capacity building through board training so that the trustees of each of the CSOTs understand their role,” he said.
