Communities in mining areas to benefit under empowerment programmes

will benefit under the indigenisation and empowerment process.
According to National Indigenisation and Economic Empowerment Board chairman Mr David Chapika, President Mugabe will soon launch the programme at Zimplats before it spreads to other parts of the country.

Mr Chapfika said each community trust would comprise 11 members with the paramount chief in the area being the chairperson.
Other members of the trust will include the chief executive of the local board who would be the secretary of the trust, the district administrator and representatives of local interest groups such as women, youths and war veterans.
“Each trust will be issued with a deed of trust which it would then use to access the 10 percent set for aside for local communities in mining companies operating in their areas.

“Every mining entity is required by law to ensure that local communities own 10 percent of the company,” he said.
He added that the dividend that would accrue as a result of the shareholding would then be administered by the trust in projects that would benefit the community in consultation with all stakeholders.
“Each trust will be expected to use the dividend to finance social programmes such as education and health in consultation the community, which is consistent with the indigenisation law,” he said. Mr Chapfika’s comments came after several speakers raised the issue of the functions of a community trust at the one-day stakeholders’ meeting organised by the Ministry of Mines and Mining Development in Mutare. Manicaland

Governor and Resident Minister Christopher Mushohwe, who welcomed delegates, said his office had been inundated with questions on the community trust.
“The people of Manicaland and indeed the people of Zimbabwe are not fully seized with the nitty-gritty of the policy of empowerment? What is the clear policy on community trusts, who should benefit and how?”
Mr Newman Chiadzwa, who wanted Government to come up with a blueprint that dictates the kind of trust that it recognises, raised other concerns on the issue.

In his view Government was supposed to recognise any properly constituted trust that was registered in terms of the country’s laws.
Chief Chiduku, who was representing the chairman of the Chief’s Council Fortune Charumbira, had questioned the role of chiefs in empowerment trusts.
Apart from empowerment trusts, Governor Mushohwe also expressed concern over the awarding of contracts by companies mining diamonds in Marange where he said local companies operating in Manicaland or

Mutare were being overlooked ahead of companies from outside the province.
He cited the awarding of tenders to build houses for relocated Chiadzwa families at Arda Transau and tenders for security services and the recruitment process as areas of major concerns. In response, Mines and Mining Development Minister Obert Mpofu said local companies and communities were supposed to benefit ahead of all other companies.

“If you have qualified personnel in the province there is no need to look elsewhere for workers,” he said. Minister Mpofu said that this was an administrative issue that should be sorted out by the companies operating in Chiadzwa but in the event that they fail to do so, the ministry would take measures to rectify the situation. The immediate past president of the Chamber of Mines Mr Victor Gapare, called on the ministry to drive the sector through ensuring issues such as policy consistency and the finalisation of outstanding legislation.

On indigenisation he said it was key to look at the ownership and benefit issues and that locals stand to benefit more through community trust, the Sovereign Wealth Fund and Employee Ownership Share Trusts as opposed to going directly into mining.

He, however, said that this could only work if the sector is allowed to grow and mining companies are allowed to prosper.
AAG president Mr Supa Mandiwanzira and his secretary-general Mr Tafadzwa Musarara advocated for Government to consider issuing special mining grants to local people so that they can use these to attract investors.

Meanwhile, Mines and Mining Development Deputy Minister Gift Chimanikire walked out during Mr Musarara’s presentation.
Mr Musarara had questioned the motives of Centre for Research and Development activist Mr Farai Maguwu whom he accused of being a functionary of the Movement for Democratic Change.