Parliament Weighs Compulsory Community Benefits fr...

Parliament Weighs Compulsory Community Benefits from Big Business

Nyashadzashe Ndoro – Chief Reporter

The Parliament of Zimbabwe on Tuesday engaged in a robust debate on a motion calling for the establishment of an Act mandating Community Share Ownership Schemes across all sectors of the economy.

The motion, initially adjourned from a previous session, was tabled by Citizens Coalition for Change MP Clifford Hlatywayo. It seeks to legally compel businesses—particularly those involved in resource extraction—to contribute a portion of their profits towards the development of the communities in which they operate.

The issue garnered significant support from several lawmakers who emphasised the need for communities to benefit from the exploitation of local resources.

Zanu PF MP for Zvimba East, Kudakwashe Mananzva, spoke in favour of the motion, drawing on both religious and cultural references. He cited Genesis 1:28 to highlight humanity's dominion over the land and invoked the spirit of Zimbabwe’s ancestors. He lamented the "dire plight" of villagers living near mining operations, alleging that foreign companies often "plunder resources" without adequately investing back into the communities through infrastructure development such as roads and clinics.

Mananzva stressed the importance of legislation that would "compel prospectors and miners to give back to communities," likening it to the biblical concept of tithing. He recounted instances in his constituency where quarry mining activities had damaged homes without providing any benefit to affected residents. He concluded by quoting former President Robert Mugabe, emphasising that "our people must always come first" and should benefit from their resources as rightful owners of the land—not as beggars.

However, Kadoma Central MP Mambipiri voiced strong opposition to the motion, outlining ten reasons for his dissent. He argued that the lack of development in communities was not necessarily due to a shortage of funds but rather the "mismanagement of funds," citing examples such as the Zimbabwe Broadcasting Corporation (ZBC) and the Premier Service Medical Aid Society (PSMAS).

His primary concern was that the proposed 5% contribution would be a duplication of the 5% already allocated to development through the existing devolution fund under Section 301(3) of the Constitution. He further argued that this would impose an additional tax burden on already struggling businesses, potentially hindering growth and job creation.

Mambipiri described the proposed monthly 5% levy as "counterproductive" and inconsistent with the principles of the National Development Strategy 1 (NDS1) and NDS2, which aim to make Zimbabwe open for business. He asserted that development is a government responsibility funded through existing taxes and that the CSOS proposal implied a failure in that responsibility. He also warned that the measure could negatively affect small and medium-sized enterprises (SMEs), adding that businesses already contribute through local council taxes.

In contrast, Zanu PF Mberengwa North MP Tafanana Zhou supported the motion and commended the government’s initial efforts to ensure miners contribute to communities. However, he raised concerns about mismanagement within existing community share ownership trusts, citing instances where funds were allegedly diverted.

Zhou proposed enacting legislation to clearly outline how CSOS funds should be managed and spent. He stressed the importance of appointing knowledgeable individuals to the committees, transparent signatory processes, and proper fund management. He also highlighted the environmental degradation and infrastructure damage caused by mining and large companies, arguing that these entities should contribute to repairing roads and bridges. He urged Parliament to enact laws or policies ensuring that communities genuinely benefit from the resources extracted from their areas.

Opposition Mashonaland West MP Mutsa Murombedzi also expressed strong support for the motion, describing it as "not just timely but necessary" to address the imbalance between resource extraction and community development. She referenced Chapter 2, Section 13 of the Constitution, which mandates that the State ensure local communities benefit from resources in their areas and encourages community participation in development planning.

Murombedzi argued that CSOS should extend beyond mining to include agriculture, manufacturing, tourism, and construction, as these sectors also exploit community resources and often leave behind negative environmental impacts. She criticised the ineffectiveness of voluntary Corporate Social Responsibility (CSR) initiatives and asserted that making CSOS compulsory would result in tangible community benefits.

She further supported a proposal requiring companies to prioritise 80% local employment, aligning with Section 14 of the Constitution, which focuses on empowering marginalised communities. Citing Botswana's diamond revenue model and South Africa's social and labour plans, she demonstrated the practicality and transformative potential of mandatory community benefit schemes.

Murombedzi concluded by urging the 10th Parliament to pass the motion into law as a "national legacy" to protect community inheritance for future generations. She called it a matter of "justice, fairness, and sustainable development."