Mugabe To Launch Gwanda Community Trust

Information shows that at least 15 companies in Gwanda will contribute to the trust.

The launch by President Mugabe at Colleen Bawn Mine will be attended by senior government officials.

The trust, the fourth to be launched since government gazetted the regulations stipulating that locals should have majority shareholding in all foreign owned companies operating in the country, shows its intention to pursue the programme analysts say is meant to curry favour with the electorate ahead of possible elections next year.

Last year, Zimplats launched the Mhondoro—Ngezi –Zvimba community share ownership trust in October while Unki launched the Tongogara Community Share Ownership Trust in November.

In February, the Mimosa Community Share Ownership Trust in Zvishavane was launched funded by platinum miner, Mimosa.

All the trusts launched so far involved a 10% shareholding given to the community.

Government’s indigenisation programme has been mired
in controversy as officials offer conflicting statements on how the policy would be undertaken.

Finance Minister Tendai Biti and Reserve Bank of Zimbabwe governor Gideon Gono have already said implementers of the policy have to sober up when approaching the delicate financial sector, the heart beat of the economy.

However, Saviour Kasukuwere, Minister of Youth Development Indigenisation and Empowerment, has said that the policy will go ahead in the financial sector.

According to him, the policy would be achieved if shareholding is transferred to three sectors: community trusts, employee trusts and the National Indigenisation and Economic Empowerment Fund.

Old Mutual, Schweppes Zimbabwe Limited and Meikles Limited have already set up employee trusts while other trusts and community share ownership trusts are on the way.