Cabinet has approved a new implementation framework for Community Share Ownership Trusts, shifting their focus to become Community Economic Empowerment Trusts as key drivers of rural industrialisation.
The move, aims to ensure more inclusive economic growth by leveraging local resources and attracting investment at the district level.
The new framework is a significant policy shift, transforming the trusts into critical vehicles for rural industrialisation. These CEETs will be tasked with attracting investment, including through partnerships, into areas like agro-processing, leveraging the local agricultural economy and newly established Village Business Units. Crucially, the trusts will also be supported to set up industrial parks in collaboration with potential partners in their respective districts.
A central component of the framework is the "One District One Community Economic Empowerment Trust" initiative.
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"The Community Economic Empowerment Trusts will be critical vehicles to drive rural industrialisation in all districts," Cabinet indicated. "These trusts will be expected to form the vital cog that attracts investments."
The framework seeks to ensure that communities benefit directly from the extraction and exploitation of natural resources in their areas through a Revenue Sharing Formulae. Companies that have previously complied with laws by paying dividends to CSOTs will continue operations, while new entrants will be subjected to the new requirements.
In tandem with this approval, the Economic Empowerment and Indigenisation Act is slated for amendment to align properly with the new thrust on CEETs and to accelerate development towards the attainment of Vision 2030. Furthermore, the proposed Economic Empowerment and Indigenisation Amendment Bill will be aligned to the Mines and Minerals Amendment Bill, suggesting a coordinated legislative effort to support the new economic model.
Deliberate efforts are also planned to ensure that special interest groups, including women, youths, persons with disabilities, war veterans, and small to medium enterprises, are involved in this empowerment process.
The Implementation Framework is anchored on six pillars: Policy-shift from Community Share Ownership Trusts to Community Economic Empowerment Trusts; the One District One Community Economic Empowerment Trust Initiative; Revenue Sharing; Rural Industrialisation and Local Enterprise Development; Governance and Administrative Framework; and Institutional Capacity Building.
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