Staff Reporter
Government is taking decisive steps to revive its Community Share Ownership Trusts (CSOTs), a critical initiative aimed at empowering marginalised communities through equitable participation in natural resource exploitation.
Minister of Industry and Commerce, Nqobizitha Mangaliso Ndlovu, has reaffirmed Government’s commitment to these trusts as key drivers of socio-economic transformation and rural industrialisation.
Speaking yesterday in Mashonaland West Province, Minister Ndlovu outlined Government’s strategy to reinvigorate CSOTs during a workshop attended by key stakeholders, including traditional leaders, senior government officials, and CSOT executives.
“These trusts were established to ensure that communities benefit directly from the resources in their areas, transitioning from corporate social responsibility to equity participation,” he stated.
Minister Ndlovu reflected on the progress made since CSOTs were introduced in 2011.
While 61 trusts were initially established, only 26 received seed capital, with just 10 making a tangible impact.
“Despite these challenges, the funded trusts-initiated hundreds of projects that improved social services, infrastructure, and sanitation, benefiting millions in grassroots communities,” he said.
However, he acknowledged setbacks, including the decline of some trusts and the dissolution of others.
“It is critical to interrogate the root causes of these setbacks. Public finances require fiduciary duty and accountability,” he emphasised, citing operational inefficiencies and losses during currency conversions as areas requiring urgent attention.
With amendments to the Indigenisation and Economic Empowerment Act in 2018, Government’s focus shifted from indigenisation to broader economic empowerment.
Minister Ndlovu announced that a new Economic Empowerment Act is underway to address legislative gaps.
“We are confident that the Bill will be gazetted in the first quarter of 2025,” he revealed.
The Minister also emphasised the importance of aligning CSOTs with national and regional development goals, including Zimbabwe’s National Development Strategy 2 (NDS2) and the Africa Agenda 2063.
“CSOTs must play a pivotal role in championing rural industrialisation and contributing to the new industrial policy,” he said.
Minister Ndlovu stressed the need for good corporate governance to ensure the sustainability of CSOTs.
“We need to harmonise trust deeds, funding mechanisms, and conduct audits to restore the integrity of CSOTs,” he stated.
The Ministry’s legal department is working on these reforms, which are expected to be completed by mid-2025.
He also called for synergies between CSOTs and the Government’s Devolution Agenda.
“We must complement, not compete. Our shared goal is to empower the same communities,” he said.
Reiterating Government’s support for community-driven initiatives, Minister Ndlovu pledged continued financial and technical assistance to viable projects.
“It is our collective duty to learn from past endeavours, emulate successful models, and craft resilient systems for the CSOTs,” he said.
The workshop concluded with a commitment to open dialogue and actionable resolutions.
“We are here to listen, digest, and implement ideas that will build sustainable and impactful CSOTs,” Minister Ndlovu affirmed.
Meanwhile, a strategic planning workshop for CSOTs is scheduled for early 2025 to integrate their activities into broader economic initiatives.
