Indigenisation Policy Targets Employees Share Trusts

The formation of the employee trusts comes after the ministry recently launched the Mhondoro-Ngezi Community Share Ownership Trust to allow local participation in mining activities.

Youth Development, Indigenisation and Empowerment Minister Saviour Kasukuwere told journalists Tuesday that while a number of community trusts are in the pipeline, government is now moving to the second phase in which employees and management have shareholding in foreign owned companies operating in Zimbabwe.

“My ministry is currently working with employee representative organisations and companies to implement the employee and management scheme,” Kasukuwere said.

“I envisage the launch of these schemes in the next few weeks starting with Schweppes, Meikles, Engen and BP Shell, which have allocated significant equity to workers trusts.”

Last month, Old Mutual agreed to give staff 9% as part of the 25% the financial sector agreed to cede to locals as it works to comply with the law.

According to the empowerment legislation, non- indigenously owned businesses operating in Zimbabwe should achieve part compliance with the legislation through disposal of at least 5% shares to employees, including management.

Kasukuwere said after launching the Zimplats Community Share Ownership Trust last Thursday, the ministry will proceed to launch more trusts in conjunction with mining businesses.

“It is planned that more Community Share Ownership Trusts will be launched in the next few weeks, namely the Marange Community Share Ownership Trust, Hwange Colliery Community Share Ownership Trust and Mimosa Community Share Ownership Trust,” Kasukuwere said.

According to the Indigenisation and Empowerment Act, foreign owned companies operating in Zimbabwe should allow locals to get a minimum of 51% within five years.