ONLY 17 community share ownership schemes are currently operational out of the 61 launched last year, an official from the Youth, Indigenisation and Economic Empowerment ministry has said. MTHANDAZO NYONI OWN CORRESPONDENT The 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 to fund development projects in their communities.
An official from the Youth, Indigenisation and Economic Empowerment ministry who only identified himself as TG Mashonganyika, told delegates during the third edition of the Zimbabwe Alternative Mining Indaba (Zami) in Bulawayo that to date only 17 community share ownership schemes were operational as many companies were yet to pay seed capital.
“Out of the 61 community share ownership schemes, only 17 are working. Amount of seed capital received to date is $25,9 million whereas the seed capital spent is $5,25 million.
The money was used for road rehabilitation; water and sanitation, construction; maintenance and repairs to schools and clinics, rehabilitation of irrigation schemes, empowerment of women and youth (10% of resources),” Mashonganyika said.
He said the number of companies currently disposing 10% to communities is 464 and the amount of seed capital pledged was $124 million.
He said at the moment the government was engaging Tongaat Hulett Sugar Company to comply with the requirements of the indigenisation policy.
According to the indigenisation and empowerment law, foreign-owned companies operating in Zimbabwe are compelled to dispose 51% shareholding to locals and ensure 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.
Speaking on the same occasion, Zela director Mutuso Dhliwayo said Zami should provide mechanisms to deal with challenges besetting the mining sector.
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He, however, lamented failure by the government to enact the new and comprehensive Mines and Minerals Act aimed at replacing the outdated one.
He said consultations were done for the new Mines and Mineral Act in 2012, but there are efforts to erode the views gathered during the consultations.
