Savious Madanhire
Back in the days, Chiefs used to receive huge amounts of money from mining companies through the Community Share Ownership Trust Fund, established to create a 51%-49% split between the community Chiefs and the Mines.
The trust provided significant financial support for community development initiatives, as it enabled the community to undertake various projects, including the construction of a clinic, school blocksand community gardens.
Zimbabwe’s community share ownership trusts (CSOTs), once hailed as a ‘revolutionary’ tool for empowering local communities through the exploitation of natural resources, are now facing significant challenges that have seen them struggling to stay afloat.
However, after the removal of the law, mines withdrew from the Community Share Ownership Trusts (CSOTs); hence, these projects were left half-finished due to a lack of funds.
In an interview with Chief Banga, and Chief Nhema, a former treasurer of the trust fund, expressed frustration over the situation, stating that “the account still holds approximately ZiG 90 000, which continues to grow monthly, but the funds cannot be accessed without miners final signature,” he said.
The CSOTs were established under the Indigenisation and Economic Empowerment Act (IEEA) of 2007, which sought to make sure that local Zimbabweans benefited from the country’s natural resources.
Section 14(1) of the Zimbabwe constitution underscores this mandate, stating the State must take measures to empower marginalised groups and communities through transparent and just affirmative action.
However, in light of this experience, local leaders, including Chief Nhema, are advocating for Corporate Social Responsibility (CSR) to be made a mandatory law for all mining investors.
“Every law should have a punishment. CSR should be made amandatory law for investors, not just act as a reminder that oneshould help local people when they can. Mining companies should prioritize community development and fulfill their obligations to support local communities,” expressed Chief Nhema.
Moreover, the withdrawal of the funding came after the Finance Act Joint Parliamentary Committee members the tour at Tebekwe Mine with Engineer Dube and Dr Smelly Dube last week of 2018, and left many trusts dormant.
However, through research, the reasons behind the failure of the trusts are mismanagement, lack of funding and poor governance, thus hindering the potential of
these trusts to transform communities.
In Midlands Province, the Tongogara CSOT, once funded by Unki Mine, built a school,
drilled boreholes and constructed a hospital mortuary;nowit only owns a broken drilling and a few vehicles, hence currently at a stark contrast.
