MUTARE– Zimunya Marange Community Share Ownership Trust administrator David Garwe has accused the government for flip flopping on the Indigenization and Empowerment Policy framework, a move that he said has been hampering the effectiveness of Community Share Ownership Trusts.
By Donald Nyarota
CSOTs were established under the Indigenization and Empowerment Act, whose provisions required foreign companies to cede up to 51 percent joint venture shareholdings to local partners- a law under review and amended in part by the Finance Act in the mid-term 2019 budget.
Government amended the Empowerment law, restricting the 51/49 percent threshold to diamonds and platinum sectors only, a stance which has now changed as the law is set to be scrapped off.
According to Garwe, addressing delegates that attended the Women’s Symposium on mining, organised by Zimbabwe Diamonds and Allied Workers Union (ZIDAWU) with support from Action Aid, said the government’s shifting of goal posts on the law has hampered the implementation of the COSTs.
“The biggest challenge that we have as CSOTs is continued changes in the laws. The Indigenization and Empowerment Act, Chapter 51 was amended in 2018. The aspect of Indigenization was on ownership which was then left effective in diamond and platinum mining activities only,” said Garwe
He added, “The same aspect has again been changed through the Finance Act. The mid-term budget announcement also came into repeal the indigenization aspects to replace it with Empowerment Act.
“The implications of these changes to the CSOTs is that they will be a section compelling companies to cede five percent to the trusts. This means all companies will give share ownership to communities and are expected to contribute.”
Garwe said despite the policy inconsistencies CSOTs have weathered the storm and will sustain through enterprise development funds that have been set aside in the trust funds.
“What is evident is that the law has been changing time and again. That shift is what we are saying is policy inconsistency and the existence of CSOTs has been bedeviled by policy inconsistency, going back and forth but we have been hanging in there.”
Garwe challenged women to forward proposal for development investment as opportunities are provided through the enterprise development, set aside to ensure sustainability.
“We have enterprise development funds set aside in the trust and we are urging women to come forward and also propose investment projects.”
