Government Revives Community Share Trusts to Boost Local Development

By Takudzwa B Karowangoro

The government has stepped up efforts to resuscitate Community Share Ownership Trusts (CSOTs) to ensure communities benefit directly from mining activities taking place in their regions.

This renewed focus follows concerns that only six out of 59 registered CSOTs remain active, reflecting a dismal 10% functionality rate, while the majority have either stalled or collapsed.

Reviving these trusts forms part of the Second Republic’s broader push for rural industrialisation, aimed at promoting fair distribution of mineral wealth and inclusive development at the grassroots level.

Speaking on the matter, Minister of Industry and Commerce, Honourable Mangaliso Ndlovu, stressed the importance of local communities benefiting from economic activity in their surroundings.

“We cannot remain passive when the law clearly outlines the path to inclusive economic empowerment. Ongoing consultations will lead to a policy framework to be presented to the Cabinet. The revival of CSOTs is critical to driving local industrialisation and community development,” said Ndlovu.

In provinces such as the Midlands, which are rich in mineral deposits, authorities believe that a revitalised CSOT model could significantly stimulate local economic growth and unlock entrepreneurial opportunities.

Midlands Provincial Affairs and Devolution Minister, Honourable Owen Ncube, echoed these sentiments, saying the initiative aligns with the Second Republic’s vision of harnessing local resources to empower communities.

“The revitalisation of CSOTs ties in with our national vision of heritage-based modernisation and industrialisation. Guided by President Mnangagwa’s mantra, ‘Nyika inovakwa, inotongwa, inonamatirwa nevene vayo,’ this approach puts communities at the centre of economic transformation,” he said.

Originally designed to support development projects in mining communities, CSOTs were meant to channel a portion of mining revenues into infrastructure, education, healthcare, and income-generating initiatives. However, over time, their impact diminished due to weak enforcement, mismanagement, and unclear operational guidelines.

The Second Republic is now renewing its commitment to revamp CSOTs, aligning them with Vision 2030, which aims to achieve upper-middle-income status by that year. Part of the reform process includes tightening legal and accountability frameworks to ensure mining companies comply with indigenisation and beneficiation obligations tied to CSOTs