‘Provinces should strengthen Community Share Schemes’

Sukulwenkosi Dube-Matutu

Bulawayo Bureau

Provinces should strengthen and effectively implement community share ownership schemes to ensure local communities directly benefit from investments in their areas, the Government has said.

Speaking during a recent visit to Blanket Mine, one of the major contributors to the Gwanda Community Share Ownership Trust, Presidential Affairs and Devolution Permanent Secretary Engineer Tafadzwa Muguti said the Government will closely monitor community share ownership schemes to ensure transparency and accountability.

“The Government will be paying close attention to these schemes to ensure that companies are adhering to their obligations and that communities are genuinely benefiting. We need more involvement from stakeholders, including traditional leaders, to ensure these initiatives serve their intended purpose,” said Eng Muguti.

Community share ownership trusts are Government-initiated structures designed to bridge the gap between mining companies and local communities. Their mandate is to drive socio-economic development in mining areas by reinvesting a portion of mining revenues into public infrastructure and social services.

Eng Muguti noted that while these schemes were designed to be inclusive, they often benefit a privileged few instead of the broader community.

“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.

Eng Muguti said future projects under the trusts should be selected by the communities themselves, ensuring that local people have a direct say in how their resources are used.

“The Second Republic wants businesses that integrate themselves into local communities, where value is visible and felt by all. Communities must be educated about their natural resources and be fully involved in decision-making,” he said.

Eng Muguti also urged provincial authorities to ensure that businesses meet their corporate social responsibility obligations and that companies lagging behind are held accountable.

“A well-structured community share ownership scheme is the fastest way for local communities to participate in governance. Communities must benefit from companies exploiting their natural resources. As provincial authorities, it is our duty to ensure that these schemes are functional, effective, and fulfilling their mandate,” he said.

In Gwanda, funds from the community share ownership trust have been instrumental in the implementation of key development including the construction of schools and clinics and the drilling of boreholes, among other social services. The scheme was established in 2012.

The scheme recently saw the rehabilitation of Gungwe Dam. Other projects include the construction and equipping of Advanced Level laboratories at five schools: Ntepe High, Sibona High, Mzimuni High, Selonga High, and Gungwe High.

Under the scheme, construction and equipping of classroom blocks at Maphane Secondary, Mabheka High, Bhalula Primary, Betsa Primary, and Chongwe Primary, as well as the construction of teachers’ houses, among other projects have been undertaken.

The trust constructed Silikwe Clinic, renovated Mapate and Sitezi Clinics in the health sector, and electrified three clinics. It has also embarked on several businesses to supplement revenue from mines. These projects include pen fattening, micro-finance, property investment, and borehole drilling.

The Government enacted Section 14(b) of Statutory Instrument 21 of 2010 under the Indigenisation and Empowerment Act to support economic empowerment for previously marginalised communities.

This law mandates that communities whose natural resources are being exploited must be guaranteed shareholding in the businesses operating in their areas.

The overarching goal is to ensure that mining activities contribute meaningfully to local development and that wealth generated from natural resources benefits the communities where these resources are found.

Government’s renewed focus on strengthening and monitoring community share ownership schemes aims to transform them into sustainable, community-led development initiatives.

The thrust of these trusts is to ensure that communities benefit from the exploitation of natural resources within their area.