Government is set to launch at least 24 Community Share Ownership Trusts (CSOTs) before the end of the year as part of a renewed drive to empower citizens and ensure rural communities derive direct benefits from the exploitation of natural resources within their areas.
The announcement was made by the Minister of Industry and Commerce, Mangaliso Ndlovu, during an appearance before the Parliamentary Portfolio Committee on Industry and Commerce this Wednesday.
The committee had summoned the minister to provide an update on the implementation of key economic empowerment initiatives, including the revival of Community Share Ownership Trusts, the enforcement of the reserved sectors policy and progress towards the enactment of the Economic Empowerment Bill.
Community Share Ownership Trusts were established to ensure that communities hosting mining and other resource-based investments receive a fair share of the benefits generated from economic activities taking place in their localities. However, many of the trusts have become inactive over the years, prompting calls for their revitalisation.
Chairperson of the Parliamentary Portfolio Committee on Industry and Commerce, Clemence Chiduwa, said lawmakers were keen to understand the progress being made in restoring the trusts and advancing broader empowerment programmes.
“We have resources that are finite, and our communities and people must benefit, hence the Ministry needed to update us on progress in relation to the revival of CSOTs, which many have become dormant. Progress with regards to implementation of reserved sectors is also of concern, which we need the Minister to tell us progress with regards to that,” he said.
Responding to the committee, Minister Ndlovu outlined Government’s plans to significantly expand community participation in economic development through the launch of new trusts across the country.
“We are targeting to launch 24 CSOTs by the end of the year, translating to three in each of the applicable provinces. We have discarded the 10 percent share ownership model in favour of the two percent share of total revenue earned,” he said.
The shift from the previous shareholding model to a revenue-based framework is expected to provide communities with more predictable and sustainable benefits, ensuring that they receive direct financial returns linked to the performance of projects operating within their areas.
The initiative forms part of broader efforts by the Government to promote inclusive economic growth, strengthen local participation in key sectors of the economy and reduce inequalities between resource-rich communities and other parts of the country.
Minister Ndlovu also briefed lawmakers on developments following the repeal of the Indigenisation and Economic Empowerment Policy, explaining that Government was working on new legislative and policy frameworks aimed at accelerating citizen empowerment while creating an attractive environment for investment.
The reserved sectors policy, which protects certain business activities for indigenous Zimbabweans, also remains a key component of Government’s empowerment agenda. Authorities are currently exploring ways to strengthen implementation mechanisms to ensure citizens fully benefit from opportunities within the protected sectors.
The planned rollout of the 24 Community Share Ownership Trusts is expected to inject fresh momentum into rural development efforts by funding community projects, improving local infrastructure and creating new economic opportunities.
As Zimbabwe continues to pursue inclusive and sustainable economic growth, the revival and expansion of community ownership schemes is being viewed as a critical step towards ensuring that the country’s natural resources translate into tangible benefits for ordinary citizens and future generations.
