mbulelo smpofu
Walter Nyamukondiwa, Mashonaland West Bureau Chief
THE crafting of the Economic Empowerment Act is in the final stages, with Government planning to gazette it early next year.
Presently, the Bill is with the Attorney General’s Office and seeks to address legislative gaps resulting from amendments to the Indigenisation and Economic Empowerment Act that while still wanting to see citizens involved, allows investors to come into the country.
At a workshop focused on the operations of community share ownership trusts (CSOT) held in Kadoma last week, Industry and Commerce Minister Mangaliso Ndlovu announced that provincial consultations have been conducted to develop the new Bill that will try and connect investors with the communities where they operate.
He expressed optimism about its timely gazetting.
“I am happy to inform you that the Ministry of Industry and Commerce is in the process of coming up with a new Economic Empowerment Act to close legislative gaps brought about by previous amendments to the Indigenisation and Economic Empowerment Act,” Minister Ndlovu said.
“The Bill is now with the Attorney General’s Office, and we are positive it will be gazetted during the first quarter of 2025.”
Minister Ndlovu emphasised the importance of community share-ownership trusts in the formulation of the industrial policy, highlighting their role in rural industrialisation.
Chiefs that attended the workshop suggested that the Bill should replace the word “may” with “shall” when it comes to major investors supporting their local trusts, arguing that many companies exploiting natural resources are not legally required to contribute to the trusts.
“Our wish is that the new Economic Empowerment Act does not give businesses the leeway to decide whether to contribute to a trust or not,” said Chief Chikwaka of Goromonzi.
“The word ‘may’ has contributed to the failure of most community share-ownership trusts as they were not funded or supported.”
Of the 61 CSOTs established, only 26 received funding and support, with just six being economically viable and impactful in their communities.
Mashonaland West Provincial Affairs and Devolution Minister Marian Chombo spoke about the potential of the trusts to transform communities and stimulate economic development.
