Understanding the Different Types of Trusts in Zimbabwe

There are various types of trusts that can be registered or established in Zimbabwe, each serving different legal and practical purposes. While there’s no exhaustive list, the most common types of trusts in use include the following:

(a) Charitable Trust: This type of trust is devoted to educational, charitable, or religious purposes and is set up for the public benefit.

(b) Debenture Trust: Established to protect the interests of debenture holders (lenders), this trust type is used when multiple people lend money to a company, providing a secured borrowing vehicle that controls the lenders' rights.

(c) Educational Trust: Commonly used to establish schools (often called “trust schools” or non-governmental schools) or to provide bursaries and scholarships.

(d) Family Trust: The most common type in Zimbabwe today, a family trust (or ownership trust) is created for the sole benefit of a specific family or family group, usually identified by name, descent, or kinship to the founder.

(e) Share Ownership Trust: Unique to Zimbabwe, this trust arose under the country’s indigenisation policy. There are three main types: Community Share Ownership Trusts (CSOTs), Employee Share Ownership Trusts (ESOTs), and Management Share Ownership Trusts (MSOTs).

(f) Statutory Trust: Established under specific legislation for the public benefit, these trusts manage and hold property in trust for the people of Zimbabwe and are typically vested in a Board of Trustees or, in some cases, the President.

(g) Unit Trust: A financial trust where investors’ funds are pooled and managed collectively, investing in a range of assets to diversify holdings and risks.