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The Role of the Indigenisation Policy in Community

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The Role of the Indigenisation Policy in Community THE ROLE OF THE INDIGENISATION POLICY IN COMMUNITY DEVELOPMENT: A CASE OF THE ZVISHAVANE COMMUNITY SHARE OWNERSHIP TRUST, ZVISHAVANE DISTRICT, ZIMBABWE A research report submitted in partial fulfilment of the requirements of the Degree MA (Economic/Industrial Sociology) By Johannes Machinya Student Number: 684369 Department of Sociology School of Social Science Faculty of Humanities February 2014 DECLARATION I, Johannes Machinya, candidate number 684369, hereby declare that this research report is my own original work. It is hereof submitted as part of the requirements for the degree of Master of Arts in Economic/Industrial Sociology at the University of the Witwatersrand, Johannesburg. This report has not previously been submitted for any other degree or examination in any other University. Where I have used the work of other authors, I have properly acknowledged them and I have not copied any author or scholar‗s work with the intention of passing it as my own. Signed: ------------------------------------------------- On-------- Day of-------------------------------------- 2014 i DEDICATION I dedicate this work first to the Lord God Almighty, thank you Lord for guiding me through. To my late mother, Felistas Machinya, I wish the Lord had allowed you to live longer so we could celebrate this together. To Tawananyasha, may the Spirit of God be with you and guide you always. ii ACKNOWLEDGMENTS I would like to express my gratitude and acknowledge the following individuals and organisations for the support they extended to me, whether academic, financial or moral, for the fulfilment of my dream; My sincerest gratitude goes to my supervisor, Dr. Sarah Mosoetsa for always making herself available for me and helping shape this project to what it is today. I also want to thank her together with Professor Michelle Williams and Ms. Pulane Ditlhake for offering me accommodation on campus so that I could concentrate on my studies. I would like to thank my brothers and sisters, and Mr. Chanana and Major Munangarwa who have continuously and exceptionally been supportive of me throughout my academic career. Many thanks to the Wits Financial Aid and Scholarship Office and the J. C Carstens for offering me financial assistance without which I would not have been able to reach this far. I am also grateful to the National Indigenisation and Economic Empowerment Board (NIEEB) and the ZCSOT for giving me the green-light to do my research. Not forgetting all the people in Zvishavane who assisted me accomplish this research. Last but not least, I want to thank all my friends and colleagues and everyone who supported me in this research and special mention goes to Wellington, Tatenda, Zivai and Alice for the encouragement they gave me. iii ABSTRACT This study focuses on the role of Zimbabwe‘s indigenisation and economic empowerment policy in community development. In particular, it investigates the contribution of community ownership of mineral resource wealth to community development with particular reference to the Zvishavane Community Share Ownership Trust (ZCSOT) in Zvishavane District, Zimbabwe. The study is situated within the framework of participatory community development and seeks to explore whether the ZCSOT stimulate broad-based participation at community level in the ownership and utilisation of natural resource wealth as envisioned in the indigenisation policy. The research utilised methodological triangulation, using a questionnaire and in-depth interviews for data collection. The findings of this study suggest that the community ownership of mineral resource wealth through community share ownership trusts (CSOTs) is capable of bringing positive social and economic transformation in resource-rich communities much better than state-centred and/or corporate-led development. However, the study also highlights that because of certain irregularities in the indigenisation policy and the subsequent operational imperfections evident in the operation of the ZCSOT, community engagement in the process of development is quite marginal. Instead, what we see is political manipulation of the CSOT, lack of transparency and corruption due to the non-representation of ordinary community members in the CSOT, thus impeding their full participation. The involvement of traditional leaders in CSOTs has promoted the entrenchment of relations of domination, paternalism and stifling of democracy, thereby contradicting with the principles of participatory community development. In the end, the study establishes that the success of community ownership of mineral resource wealth in the socio-economic transformation of mineral-rich communities needs need to be anchored on the full participation of local communities. iv LIST OF ACRONYMS AND ABBREVIATIONS BEE Black Economic Empowerment CNRG Centre for National Resource Governance CSOS/T Community Share Ownership Scheme CSOT Community Share Ownership Trust CSR Corporate Social Responsibility ESAP Economic Structural Adjustment Programme ESOS Employee Share Ownership Scheme ESOT Employee Share Ownership Trust IEE Indigenisation and Economic Empowerment IMF International Monetary Fund MDC Movement for Democratic Change MYDIE Ministry of Youth Development, Indigenisation and Empowerment NIEEB National Indigenisation and Economic Empowerment Board NIEEF National Indigenisation and Economic Empowerment Fund PIDA Participatory Institute for Development Alternatives UNESCO United Nations Educational, Scientific and Cultural Organization WCoZ Women Coalition in Zimbabwe ZANU-PF Zimbabwe African National Union Patriotic Front ZCSOT Zvishavane Community Share Ownership Trust v TABLE OF CONTENTS Declaration………………………………………………………………………………..……i Abstract………………………………………………………………………………………..ii Dedication…………………………………………………………………………………….iii Acknowledgements……………………………………………………………………...……iv Acronyms and Abbreviations……………………………………………………………….…v CHAPTER ONE: INTRODUCTION Introduction……………………………………………………………………………………1 Research aims and research questions…………………………………………………………1 Zimbabwe‘s economic policy trajectory since 1980…………………………………………..2 The indigenisation and economic empowerment policy.....................................................…...4 The Zvishavane Community Share Ownership Trust in context………………………...……9 Description of the research site………………………………………………………………12 Conclusion………...………………………………………………………………………….13 CHAPTER TWO: LITERATURE REVIEW Introduction………………………………………………………………………………..…15 An overview of the mining–local community development nexus ….....................................15 A critical review of CSR and its contribution to community development………………….17 Community development as a language of empowerment…………………………………..21 The imagined harmony model of ‗community‘ in community development………………..23 Is participation the next buzzword in development? ………………………………….……..25 Empowerment problematised…………………………………………………………….…..27 Traditional leaders, rural administration and their role in community development….……..30 CHAPTER THREE: METHODOLOGY Introduction…………………………………………………………………..………………33 Research approach……………………………………………………………………………33 Sampling………………………………………………………………….…………………..34 vi Research methods…………………………………………………………………………….35 Questionnaire……………………………………………………………………...…35 In-depth interviews…………………………………………………………….……..36 Data collection experience………………………………………………………….…..……38 The problem of translation……………………………………………………………...……41 Data analysis…………………………………………………………………………………41 Ethical considerations…………………………………………………………………….….42 Limitations…………………………………………………………………………………...43 CHAPTER FOUR: REVERSING THE ‘RESOURCE CURSE’ THROUGH MINING INDIGENISATION? Introduction………………………………………………………………………………......44 Is natural resource abundance a curse to resource-rich communities? …………………...…45 Mining and corporate social responsibility or corporate social ‗irresponsibility‘……….…...49 Socio-economic challenges in Zvishavane and the responses by the ZCSOT…………….....52 Unemployment……………………………………………………………………….53 Low levels of household income……………………………………………………..56 Poorly developed school infrastructures……………………………………………..58 Poor health delivery systems…………………………………………………………62 Acute water shortages…………………………………………………………….….63 Loss of agricultural land……………………………………………………….……..66 Conclusion…………………………………………………………………………………....67 CHAPTER FIVE: THE PRACTICALITY OF ‘COMMUNITY’ OWNERSHIP, PARTICIPATION AND EMPOWERMENT IN COMMUNITY DEVELOPMENT Introduction…………………………………………………………………………………..70 Community knowledge about the ZCSOT……………………………………………….…..71 Political manipulation of the indigenisation process…………………………………………76 Traditional authority: custodianship or paternalism in community development……………81 vii Traditional leaders as custodians and representatives of the people…………………84 Paternalism, domination and traditional authority as political capital……………….88 Indigeneity, participation and empowerment: a reality or rhetoric? ………………………...95 Representative participation………………………………………………………….96 Participation of community members in the ZCSOT………………………………...99 Indigenisation changing people‘s lives: How the communities are benefiting? …………...107 Conclusion………………………………………………………………………………..…109 CHAPTER SIX: CONCLUSION Introduction……………………………………………………………………………...….111 Summary of findings………………………………………………………………………..111 Theoretical and policy implications of the study …………………………………………..115 REFERENCE LIST ………………………………………………………………………..116 APPENDICES Appendix 1: Ethics clearance certificate……………………………………………...126 Appendix 2: Participant
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