 Minister of Economic Planning and Investment Promotion, Hon Tapiwa Mashakada  Minister of Information Communication and Technology, Hon Nelson Chamisa.  IAC Chief Executive Officer, FJ Dube 3

In line with achieving the main goals of the Mid Term Plan of ensuring a transforming of the economy, reducing poverty, creation of jobs, maintaining macroeconomic stability and restore the economy’s capacity to produce goods and services, the Ministry of Youth Development, Indigenisation and Empowerment [plays a critical role in assuring the achievement of these goals. 4

 Under Indigenisation and Empowerment, the Government will focus 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.  The vehicles that are being used to achieve Broad based economic empowerment are: › Community Share Ownership Scheme › Employee and Management Share Ownership Scheme › Direct Equity Participation › Procurement › Youth Development Fund 5

Community Share Ownership Schemes rather than Corporate Social Responsibility represent genuine empowerment of local communities. Historically, rural communities have been marginalized and patronized by mining business through the so called Corporate Responsibility programme. Lets not dictate to communities what to do for them but rather allow them to determine their own priorities. The main objectives of the Community Share Ownership Schemes or Trusts are to: To enable communities to benefit from their God given resources. Reinforces the role of communities in economic development by enabling communities to make decisions on their development priorities. To ensure Broad based participation. The Community Share Ownership Schemes shall be entitled to 10% equity in the mining businesses. The Community Share Ownership Trust shall be entitled to Board representation in each mining or natural resource extraction business. Community Share Ownership Schemes shall be independent bodies responsible for making their own decisions and shall negotiate their relationship with exploiters of natural resources on their own. 6

My Ministry, the Ministry of Mining Development, the Ministry of Local Government, Rural and Urban Development, the National Indigenisation and Economic Empowerment Board and the World Bank will capacitate the communities to take responsibility in developing their areas. Income generated through equity participation by the communities will be utilised for the development and maintenance of socio- economic infrastructure such as dip tanks, roads, schools, hospitals and clinics, water works and conservation practices. Communities could come up with programmes for special interest groups like the women, youths and the disabled. The Community Share Ownership Trusts shall have a Deed of Trust registered with the Deeds office. Community Share Ownership Schemes should not be fake. The Minister shall approve all Community Share Ownership Schemes. The Community Share Ownership Trust shall have the Chief as its chairperson and the chairperson of the RDC shall be a Trustee. The CEO of the RDC shall be the Secretary of the Trust whilst the rest of the Trustees shall not be from the RDC but instead, from the community having representation of the youth, women and disabled. 7

Employee and Management Share Ownership Schemes are established in terms of Section 14 and 14(a) of the Regulations. The Purpose of the Employee Share Ownership schemes shall be to ensure broad based economic empowerment by ensuring that the workers participate by way of having direct equity participation in the companies they are working for. Implementation of the Employee Share Ownership Schemes shall indirectly lead to the increase in productivity levels in the companies and low employee turnovers in companies that have implemented the Scheme as employees derive more job satisfaction and thus resulting in stable employment. Employee and Management Share Ownership Schemes shall have a Deed of Trust registered with the Deeds office and specifying percentage shareholding to be held by employees and/or Management ESOS facilitates Broad Based participation. To date Schweppes, Meikles Limited, Bikita Minerals, Mimosa, Sengwa Mine, Blanket Mine and River Ranch Limited have all proposed Employee and/or Management Schemes of different proportions. 8

Indigenisation promotes the procurement of goods from indigenous Zimbabweans. At least 50% of the goods procured by all private and public businesses should be procured from indigenous Zimbabweans. The Ministry and the National Indigenisation and Economic Empowerment Board will be working closely with the State Procurement Board to ensure that the law is enforced and that the entrepreneurs producing goods and services are empowered contracts to ensure the growth of indigenous businesses, the betterment of livelihoods and the growth of the economy of Zimbabwe. 9

Act sets 51% indigenous shareholding in all strategic businesses as the long term policy objective. All mergers, restructurings, unbundling of business, demergers, relinquishment of a controlling interest shall comply with the 51% indigenous ownership requirement. Direct equity achieved fro the above stated transactions as well as from the Employee Share Ownership Schemes and Community Share ownership schemes shall be for the sole purpose of ensuring indigenous participation and ownership in the economic activities of the country to ensure the ratification of past injustices, economic growth, poverty reduction and ultimately, economic growth. The coming up with sector specific frameworks is already underway having gazetted the framework for mining as it is the most strategic sector but we are now in the process of concluding frameworks for the Education, Agriculture, Manufacturing and Communication Sectors with Tourism and Finance still being worked on. This will ensure that the indigenous Zimbabweans participate in the various sectors and ensure that the issue of poverty reduction is adressed amongst the people. 10

To reduce the wide gap between the rich and the poor and ensure economic growth as well as broad based socio-economic growth, a national Sovereign Wealth Fund is in the process of being set up. The fund will be financed mainly by income from the nations natural resources. Since mineral resources are finite, there is need to develop secondary industries as alternative bases of development after the mineral resources are depleted and this will be done through the Sovereign Wealth fund. The fund will financing development programmes across the country this will contribute positively stimulate the growth of Zimbabwe’s economy. 11

12 The Medium Term Plan comes at a time when indigenisation and Empowerment is in the process of implementing most of its programmes in order to address the issue of Broad Based Economic Empowerment. Poverty reduction, stable employment awarding of contracts and share ownership are issues that will be addressed through the various vehicles of empowerment and the Ministry will ensure the Mid Term Plan in relation to Indigenisation and Empowerment will be executed and achieved by 2015! I Thank you!!

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