1.0 INTRODUCTION
1.1 Under indigenisation and empowerment, government focuses on broad based economic empowerment to ensure the majority of Zimbabweans are integrated into the main stream economy and that they become drivers and beneficiaries of the economic activities in the country.
1.2 Some of the vehicles that are being used to achieve broad based economic empowerment are:
Community Share Ownership Trusts (CSOT), Employee Share Ownership Schemes (ESOS, Direct Equity Participation, Procurement and Youth Development Fund among others.
1.3 Pursuant to its oversight role over the executive, the Thematic Committee on Indigenisation and Empowerment resolved to undertake an inquiry into the operations of the Community Share Ownership Trusts and Employee Share Ownership Schemes in order to assess the progress made towards the implementation of these schemes in accordance with the requirements of the indigenisation law. This report is a summary of the Committee's findings, observations and recommendations on the same.
2.0 OBJECTIVES
The objectives of the enquiry were:
2.1 To understand the operations of both the Community Share Ownership Trusts and Employee Share Ownership Schemes.
2.2 To assess the extent to which the programmes have been implemented
2.3 To appreciate challenges that may be hindering the implementation of these schemes.
2.4 To recommend strategies that may enhance the successful achievemeni of indigenisation and empowerment.
3.0 METHODOLOGY
To gather information on the implementation of the Community Share Ownership Trusts and
Employee Share Ownership Schemes, the Committee held oral evidence meetings and received written submissions on the same.
3.1 Oral Evidence Sessions
3.1.1 On behalf of the Permanent Secretary for the Ministry of Youth, Indigenisation and Economic Empowerment, Mr. Sigobodhla, the Director of Indigenisation and Empowerment in the ministry, unpacked the Indigenisation and Economic Empowerment Act [14:33]. This was done in order to enhance the Commitiee's understanding of tlie indigenisation and empowerment legislative framework.
3.1.2 The National indigenisaiion and Economic Empoweiment Board, Chief Executive Officer, Mr. Gwatiringa briefed the Committee on the achievements and challenges that the Board is faced with in various sectors in as far as the implementation of the indigenisation programmes is concerned.
3.1.3 The Committee received oral evidence on the operations of the following six Community Share Ownership Trusts:
(i) Bindura Community Share Ownership Trust
(ii.) Mhondoro-Ngezi-Chegutu-ZvimbaCommunity Share Ownership Trust
(iii.) Uzumba-Maramba-Pfungwe Community ShareOwnership Trust
(iv.) Gwanda Community Share Ownership Trust
(v.) Umguza Community Share Ownership Trust
(vi.) Bikita Community Share Ownership Trust
3.1.4 The Committee also received oral evidence on the operating modalities of the Employee Share Ownership Schemes of the following three companies: Meikles Limited, Schweppes Zimbabwe Limited and Delta Corporation (Pvt.) Limited.
3.1.5 In addition, the Committee received written submissions from all the witnesses that appeared before it to give oral evidence on Community Share Ownership Trusts and Employee Share Ownership Schemes.
