Only 16 community share schemes operational

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ONLY 16 community share ownership schemes are currently operational out of the 58 launched last year, Youth, Indigenisation and Economic Empowerment secretary George Magosvongwe has said.

By Tarisai Mandizha
Business Reporter

The community share ownership scheme is a government initiative under the indigenisation programme aimed at ensuring that communities have shares in companies that exploit natural resources in their areas and use the proceeds from the shareholding to fund development projects in their communities.

Magosvongwe told the Parliamentary Portfolio Committee on Indigenisation and Empowerment yesterday that to date only 16 were operational as many companies were yet to pay seed capital.

“Out of the 58 community share ownership schemes only 16 are working. For a community share ownership scheme to start working companies should pay seed capital,” Magosvongwe said.

According to the indigenisation and empowerment law, foreign-owned mining companies operating in Zimbabwe are compelled to dispose 51% shareholding to locals and at least 10% of this equity is seeded towards community share ownership schemes which are reserved for the local community in which the firm operates.

Magosvongwe said the seeding of 10% to community share ownership schemes did not mean the investment was already operational. He, however, said introduction of the community share ownership scheme or trust had been done in businesses exploiting natural resources and government set up sectoral committees to assist ministers to come up with a sectoral specific implementation framework.

“The sector committees which are comprised of representatives from government, private sector and civil society concluded their work and government is considering the recommendations and the minister has already gazetted the mining sector and the rest will be published in due course,” he said

Magosvongwe said the sector specific for indigenisation and economic empowerment framework for the mining sector required the disposal of 10% for community share ownership trusts and at least 5% for employee and management share ownership trusts.

5 COMMENTS

  1. Let’s hope that these community share ownership trusts will not become also fertile grounds for corruption. We don’t want more cuthbert dube. We checks and balances so that people don’t loot funds from these trusts. Communities have to benefit not individuals.

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  2. They are meant tp providing feeding troughs for the chefs. The chef mentality has brought corruption in Zim. There chef is bigger than the povho and is only answerable to the commander in thief!

    • My Comrade, visit the Gwanda community share Trust and learn from them. they are building six science Labs and equiping them, buildings teachers houses, they bought a boreho;e drilling rig which ii operation as I write, Chefs in a capitilist system they are bound to benefit and prosper becoz its capitalism, they why Halliburton owned by Bush and partners is all over the world. thats capitalism my friend. The share Trusts is a system that tries to bring social equity or socialism comrade.

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