Siphakeme .Mnindwa
COMMUNITY share ownership schemes (CSOSs), launched in 2011 as part of the wider economic indigenisation and empowerment drive, transformed rural areas, mainly those adjacent to large mines.
In terms of the law, extractive companies must set aside up to 10 percent of their shareholdings to communities they operate in. Communities then decide on development projects they want executed.
We remember the big names — Mhondoro-Ngezi CSOS,which is supported by Zimplats, Marange-Zimunya CSOS, which is backed by diamond miners at Chiadzwa and the Tongogara CSOS supported by Unki Mine.
Through the schemes, roads, clinics and schools were built in many parts of the country. Scores secured fulltime jobs in the secretariats of the schemes and as project-based employees. Incomes and livelihoods improved markedly.
For the Government, this was a smart move. Instead of using its resources to build infrastructure, the private sector did the job. This meant a huge saving of public resources, which were then channelled to other pressing undertakings.
However, CSOSs appear to have lost steam.
Speaking at Blanket Mine near Gwanda recently, Presidential Affairs and Devolution Permanent Secretary, Engineer Tafadzwa Muguti hailed the great work that CSOSs have done but said they must be more effective.
He wants decision-making to be more collective, not the situation now, which has seen a few making decisions for communities. He wants greater transparency on the impact of the schemes.
“One major challenge is that when these schemes are introduced, only a few educated or privileged individuals tend to dominate decision-making. We must ensure greater community engagement so that everyone has a voice. Reports on the socio-economic impact of the 10 percent share ownership allocation must be shared openly,” he said.
“The Second Republic wants businesses that integrate themselves into local communities, where value is visible and felt by all.”
As a matter of fact, CSOSs have been overshadowed by the devolution fund, which has built hundreds of projects, evenly spread across the country as opposed to the mainly mine-specific impact of CSOSs.
Eng Muguti’s observations must be followed through for the empowerment initiative to perform to its full potential.
We ask Government to demand, from eligible companies, up-to-date, detailed reports showing the amounts of money they are allocating to their CSOSs. The trusts must identify the projects on which they spent their allocations and pinpoint them physically.
As Eng Muguti observed, the secretariats of the schemes should let the people prioritise projects they want done.
If CSOSs thrive alongside the devolution fund, rural areas would undergo a rapid, inclusive and sustainable transformation which we all desire.
Online Reporter