The Sunday Mail
As the thrust to comply with the Indigenisation and Economic Empowerment Act gathers momentum ahead of the March 31 deadline, the formation of empowerment trusts is emerging as one of the most important cornerstones of implementing the law.
While much focus on the Act has been on the misplaced notion that only bigwigs will benefit through wanton grabbing of companies, a look at empowerment trusts bears proof that the indigenisation and economic empowerment drive is brining real benefits to the people.
According to the Ministry of Youth, Indigenisation and Economic Empowerment, empowerment trusts fall under community share ownership schemes, which are modelled to ensure that communities enjoy a variety of socio-economic benefits from companies as part of the implementation of the law.
Empowerment trusts create a win-win situation as they enable companies to comply with the law while at the same time ensuring that the benefits of the Act are realised by communities.
To date, several empowerment trusts have taken shape, showing proof that implementation of the Indigenisation and Economic Empowerment Act is on course.
National Indigenisation and Economic Board Head of Compliance Ms Theresa Chifamba says one of the major success stories is the BAT Zimbabwe Tobacco Empowerment Trust in Mt Darwin. Ms Chifamba says BAT has to date availed more than US$500 000 to support the trust.
“As we move ahead of the March 31 deadline to comply with the law, there are a number of companies that have done well in terms of complying and other companies which are yet to comply can take lessons from them.
“The BAT Empowerment Trust in Mt Darwin is one such model which we consider a success because it is bringing out real benefits to the people.
“So far it has availed more than US$500 000 and this has gone out to assist communities in Mt Darwin who are into tobacco farming. This money will enable such farmers to be to acquire the skills they require so that they can become better producers,” she says.
BAT Managing Director Mr Lovemore Manatsa adds that the bulk of the funds for the trust will be channelled towards capacity building for small-scale farmers at Chaminuka Vocational and Training Centre.
The trust has acquired a batch of ordinary shares in BAT as part of the Zimbabwe Stock Exchange-listed company’s plan to comply with the law.
“The trust was established under BAT Zimbabwe’s Indigenisation Compliance Plan and acquired 10,76 percent ordinary shares in BAT Zimbabwe.
“It was established to provide both technical and financial assistance to emerging indigenous tobacco farmers as well as to students pursuing agricultural studies at local tertiary institutions around the country.
“The Trust will increase BAT Zimbabwe’s existing support of the Agricultural sector by giving youth and female small scale farmers the opportunity to grow into viable commercial farmers.”
During a tour of Chaminuka Training Centre last week, The Sunday Mail gathered that part of the over US$500 000 which has been availed by BATZ to the trust has been channelled activities that include renovations of building infrastructure, construction of tobacco barns as well as installation of irrigation equipment at the Chaminuka Training Centre.
The trust also provides a scholarship scheme that pays 50 percent of fees for all students who enrol in a course which specialises in tobacco farming at the centre.
Chaminuka principal Mr Alois Musariri says, “Our relationship with BAT is that they are supporting us through the trust. They have provided funding which has resulted in the college increasing its capacity to provide entrepreneurship training to students.
“As a result, we are expecting our enrolment to grow to more than 1000 by 2018. This will be mainly through the special course on tobacco, where BAT will provide 50 percent of fees for all students who enrol in this course.
“Our college is set to become a centre of excellence for training of tobacco farmers and other vocational centres from the 42 that are there countrywide will be able to become satellite centres of this institution.”
Project Manager of the trust, Mr Vimbai Makombe, adds that farmers from communities surrounding Chaminuka have benefited from the tobacco farming lessons.
“These lessons ensure they will increase their tobacco yields and quality of the crop, thereby also increasing their income and contributing their socio-economic development.”
Mr Makombe says the trust has a deliberate mandate to support female tobacco farmers as 50 percent of beneficiaries of the scholarship should be women.
The Ministry of Youth, Indigenisation and Economic Empowerment has identified Vocational training institutions as crucial in the implement of the Act.
Under the new Indigenisation and Economic Empowerment framework unveiled by Government this year, designated entities that will acquire 51 percent equity in businesses include the “National Indigenisation and Economic Empowerment Fund, the Sovereign Wealth Fund, employer share ownership trusts, community share ownership trusts, the Zimbabwe Mining Development Corporation, the Zimbabwe Consolidated Diamond Company and any other company incorporated by Government or in which Government has a controlling interest”.
