Vusumuzi DubeJudith Phiri, Business Reporter
THE Gwanda Community Share Ownership Trust (GCSOT) has said the US$360 000 they have received as dividend payment from Blanket Mine will be used for socio-economic development projects within the communities of Gwanda, in pursuit of their vision for a “socially and economically empowered Gwanda community.”
Blanket Mine is a subsidiary of Victoria Falls Stock Exchange (VFEX) listed resources group, Caledonia Mining Corporation Plc.
In 2012, Caledonia facilitated the ownership of 51 per cent of Blanket by Indigenous Zimbabweans in accordance with the prevailing legislation at that time. This included a 10 per cent ownership by the local community via GCSOT.
In 2020, following changes in legislation, Caledonia increased its shareholding in Blanket to 64 per cent, but GCSOT retained its 10 per cent ownership.
According to Blanket Mine, in 2012 and 2013 they made advance dividend payments to GCSOT totaling US$4 million so that GCSOT had funds to establish its operations.
“GCSOT repaid the advance dividends by sacrificing its entitlement to future dividends: initially GCSOT sacrificed 100 per cent of its dividend entitlement, which was subsequently reduced to 80 per cent. The outstanding balance of the advance dividend account at June 30, 2021 (being the most recent reporting date) was US$0.2 million,” said Blanket Mine in a statement on Friday.
It is said on September 29, 2021, Blanket paid a dividend following which the advance dividend account has been completely repaid.
In an interview, GCSOT chief executive officer (CEO), Mr Coster Nkala said the US$360 000 they received from Blanket Mine as its share of declared dividends in this quarter, will be used for socio-economic development projects within the communities of Gwanda.
He said this will be in pursuit of their vision for a “socially and economically empowered Gwanda community.”
Mr Nkala added: “Our overarching strategic plan has two programmes which are Policy and Administration; and Socio-Economic Empowerment and Investment. There are four programme outcomes that is improved governance and administration, improved community empowerment and development, improved access to funding by communities and improved revenue generation.”
He said these will ensure that their entity works towards the fulfilment of its mandate and make contribution to the National Development Strategy 1 (NDS1).
Mr Nkala said the Trust adopted a new socio-economic development model that combines business sustainability and social entrepreneurship, instead of the social transfer approach that has been used during the early years of its establishment.
“The ultimate goal is of a “socially and economically empowered Gwanda community.” Socio economic empowerment concepts such Shared Value Concept and Social entrepreneurship are being embraced,” he added.
“Our social entrepreneurship aspect combines commercial activities with social objectives. We aspire to be an organisation that exists for a social purpose but engages in enterprise development to fulfil its mission, using market-based techniques to achieve social ends.”
Mr Nkala said their aim was to transform the Trust to become a community organisation that uses business as an instrument for socio-economic development, which reflects the balance between financial and social objectives.
He said their strategy encapsulate two sustainability performance dimensions such as economic sustainability performance, which reflects the long-term profitability and financial sustainability of the Trust as measured in terms of long-term operational effectiveness, efficiency, productivity, earnings, return on investment, and market value.
While the other strategy was social performance, which measures how well the Trust translates its social goals into practice.
“Social performance reflects how and to what extent the Trust fulfills its social development goal by making its social mission a reality and aligning it with interests of society,” added Mr Nkala.
He said they intend to accomplish the enterprise development goal by targeting projects namely, commercial property investment, borehole drilling, poultry production, pen fattening, pecan nut project, micro lending and education assistance.
Mr Nkala said the bulk of the fund will be used towards capital projects to create office space to work and do business.
“Creating office and business space is paramount in the establishment of our Microfinance institution (for financial inclusion of our communities) and retailing of community produce. The other portion will be used for the ongoing empowerment programs such poultry production and education assistance,” he said.
“All these projects are planned during the strategic period of 2021-2025. We would like to express our appreciation to Blanket Mine for being a good corporate citizen by showing and exercising their continued commitment to contribute to economic development while improving the quality of life of the community and society at large over the years.”
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