Zim seeks transparency on Community Share Ownership Trust operations

By ZBC Reporter
ZIMBABWE is reviewing the performance of Community Share Ownership Trusts (CSOTs) to assess their impact on development in line with a proposed new economic empowerment law.
The removal of a 51/ 49 percent resource ownership requirement among foreign firms operating in Zimbabwe has been cited as the main factor which has seen the community share ownership trusts proposing new operating systems.
Speaking at a review meeting this Thursday, Zimplats Mhondoro Ngezi CSOT Chief Executive Officer, Swedi Phiri stressed on the need to focus on transparency and efficient use of resources following the removal of indigenisation requirements.
“We are also focusing on what we can do best for the benefit of the communities,” said Phiri.
A projects officer for a local development centre, Zandile Mvududu said monitoring of the use and allocation of resources is critical.
“It is all about what can be done to chart the way forward, with monitoring resource use being imperative,” she said.
Association of Community Share Ownership Trusts(CSOT) in Zimbabwe Vice Chairman, Chief Khulumani Mathema said while projects have not been abandoned, the CSOT’s are waiting for the new economic empowerment law.
“We remain hopeful that future we can do something better,” said Chief Mathema.
Zimbabwe is reviewing its economic empowerment law to ensure inclusive socio-economic development that attracts foreign direct investment.
Government will repeal the Indigenisation and Economic Empowerment Act as it moves to enhance the attractiveness of the minerals sector to foreign direct investment (FDI).
The law will be replaced by a more “business-friendly” Economic Empowerment Act, but in the interim, the Indigenisation Act has been amended to remove the critical diamond and platinum sub-sectors from the reserve list.
The Indigenisation and Economic Empowerment Act worked to discourage and alienate much-needed FDI and investment as the way it was implemented threatened business.