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Zvamaida Murwira-Senior Reporter
GOVERNMENT will relaunch nine Community Economic Empowerment Trusts by the end of this month, where it is envisaged that they operate sustainably, create jobs through several initiatives like agro-processing as part of efforts to drive rural industrialisation, Senators have heard.
At least three Trusts will also be relaunched every month in every district by the end of this year, while a Bill that will compel mining firms to cede a stipulated threshold of their earnings to their local community will be tabled before Parliament next month.
This was said by Industry and Commerce Minister Mangaliso Ndlovu, while responding to questions in the Senate last Thursday.
Mashonaland West Senator Christopher Mutsvangwa had asked what Government planned for areas damaged by mining activities, such as mountains.
Minister Ndlovu said a Bill has since been worked on to deal with mining firms to ensure that communities benefit under the Trust formerly known as the Community Share Ownership Trust.
“A Bill will be before Parliament possibly mid-July, which is the Bill on Economic Empowerment, and it has a lot to do with communities benefiting from the extraction, mainly of minerals in their area.
“In 2025, the Cabinet approved that we revive the Community Share Ownership Trust, as they were called, but they will now be called a Community Economic Empowerment Trust, primarily focused on driving rural industrialisation, promoting agro-processing and doing what we call Local Enterprise Development, where they will be integral even in the operations of the mining companies and other institutions in their jurisdictions,” said Minister Ndlovu.
“We believe our communities have the capacity to produce some of the Personal Protective Equipment and other supplies that these corporations need. To have a sustainable programme in these communities, we looked at how they can benefit from this extraction.”
He said Community Share Ownership Trust will be relaunched under a new name Community Economic Empowerment Trust.
“At the end of June 2026, we will be relaunching nine community trusts, most of which had previously collapsed. We will be managing their funds and preparing them to receive financial resources that are currently held by the Treasury, awaiting a disbursement framework.
“By the end of the year, our goal is to have revived at least three community trusts in each district. These trusts will be adequately equipped to ensure that the funds received are utilised in a manner that promotes sustainability, creates jobs and drives rural industrialisation in their respective areas,” said Minister Ndlovu.
He said the Trust will be bound to adhere to all corporate governance tenets.
“Certainly, we will also ensure that corporate governance issues are adhered to and to make sure that the funds that would have been disbursed to them are expended properly.
“We will be insisting on annual audits from the Auditor-General to make sure that we can appreciate how these funds are spent. I am happy that our chiefs will continue to be the Chairpersons of these trusts but we have also included the Ministers of State representatives so that there is closer oversight, learning from past mistakes that may have led to some of the trusts going under,” said Minister Ndlovu.
“I am saying this with caution because I have said that while this was approved by Cabinet, it is contained in a Bill which I hope this August House will support when it gets here.”
He said there will be a multistakeholder meeting that includes all the different Ministries to strike a solution that will benefit communities.
“I must say this is a question that will be decided between ourselves, the Ministry of Finance, Economic Development and Investment Promotion and the Ministry of Mines and Mining Development because Cabinet had approved a 2 percent turnover of every mineral mined to accrue to communities to fund their enterprise development initiatives.
“However, the Ministry of Finance, Economic Development and Investment Promotion has introduced a 2 percent corporate social responsibility tax, so we will synchronise as the Bill comes here to have a unified approach on this,” said Minister Ndlovu.
He said ensuring communities benefit from resources in their area was a constitutional matter that required compliance.
“This, Mr President, is a constitutional matter coming from Sections 13 and 14 of our Constitution, which bind Government to make sure that communities benefit from the resources,” he said.
Finance, Economic Development and Investment Promotion Deputy Minister, Kudakwashe Mnangagwa said given that minerals will at some point be exhausted, Government has come up with a tax policy that ensure win win solution.
“Our taxation policy when it comes to mining has reached what we call a fine balance to promote the ease of doing business, promote investment and to get whatever we are supposed to get as Government. These monies will be used to support some social activities of Government, whether it is social, health and agriculture. We will be doing this with a view that in the years ahead our minerals will be exhausted,” he said.
