PRESIDENT Robert Mugabe is next month expected to launch a $10 million community share ownership trust (CSOT) for Mashonaland East under the indigenisation and empowerment drive.
By Jairos Saunyama
The province is the only one in the country where a CSOT scheme was yet to be launched.
It will be launched on November 6, according to the 3rd Quarter Progress Report presented to Indigenisation minister Patrick Zhuwao by the province’s Indigenisation and Empowerment department.
“The province established nine trusts in all nine administrative districts. Only two are operational thus Goromonzi and UMP [Uzumba Maramba Pfungwe] Community Share Ownership Trust (CSOT). The province had activated Mutoko and Wedza Community Share Ownership Trust with minimum contributions into CSOT accounts by the qualifying businesses,” part of the report read.
“Out of the 20 qualifying businesses venturing in mining only, four mining companies contributed seed capital.
“The CSOT launch in Mashonaland East is still pending despite all 99% preparedness. In view of the current development and progress made so far, the launch may take place on November 6 2015.”
Just after getting into office early this year, then Resident minister Joel Biggie Matiza summoned qualifying businesses in the province and ordered them to support the government’s initiative.
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Matiza, however, faced massive resistance from mostly mining companies who blamed the current harsh economic conditions as unfavourable to their operations, resulting in them failing to contribute towards CSOTs.
The province’s CSOT launch could have been held two years ago at Mutawatawa growth point, but failed to take off for undisclosed reasons despite some companies having pledged seed money.
Some of the companies targeted in the province by government include Natural Stone, CRG, Zimbabwe International Quarry Enterprises, Imire Game Park and Ilford Red, among others.
Mugabe has launched several CSOTs around the country under the country’s controversial indigenisation laws, but most of them have struggled to transform local communities with the $50 million Zimunya-Marange CSOT pledge proving to be a hoax.
