Diamond blacklist could hurt Zim growth plans

Bernard Mpofu/Taurai Mangudhla

Zimbabwe’s economic growth prospects could suffer a major setback amid indications that a coalition of civic organisations is lobbying for the blacklisting of locally produced diamonds citing growing human rights violations on unregistered artisanal miners.

Treasury projects the economy to register a 3 percent growth driven by strong growth in the mining sector, particularly gold, chrome, coal and diamonds.

Now pressure is mounting on global diamond trade watchdog Kimberley Process to widen the scope of what is termed conflict diamonds. This came after security officials descended on illegal diamond panners in Manicaland resulting in a fatality.

Last month an illegal diamond miner was shot dead by a Zimbabwe Consolidated Diamond Company (ZCDC) security guard. Terrence Masendeke, from Jori village under Chief Nyashanu, was part of the over 300 illegal diamond panners who invaded Bravo near Muchena in the Marange diamond fields, when he was shot dead on May 15.

Civic society organisations currently converged in India for KP meetings which will end tomorrow have taken the global diamond watchdog to task over ongoing conflict and gross human rights abuses in countries producing the precious gems.

“Despite two and a half years since KP reform discussions started in Australia, there has still been no substantive discussion on proposals or content regarding expanding the KP’s scope, nor on mechanisms to enable it to address emerging issues, like violence and conflict in an impartial and effective manner, except haggling on procedural matters,” KP Civil Society Coalition coordinator Shamiso Mtisi said this week.

 “However, as CSC we would like to acknowledge and appreciate the work done by the European Union, both as KP Chair in 2018 and Chair of the Sub-theme group on Consolidation and Scope in laying the foundation for discussions on three content related elements on scope that include nature of conflict, actors involved and involvement of the UN.

As an African civil society representative concerned with the betterment of my country and the whole African Continent – with justice, transparency and economic opportunity for all, I know that where properly managed, diamonds have the potential to be a positive development driver. This potential is what the KP CSC strives for. We understand that this development potential can only be truly achieved in the right conditions. This is why we raise our voices.”

Mtisi said government should consider formalising artisanal mining and training security forces to improve operations at diamond fields.

Zimbabwe’s delegation to the KP comprising Mines Minister Winston Chitando,  mining promotion and development director John Makandwa, Ministry of Mines legal advisor Jacqueline Munyonga, Ministry of Mines legal officer Lindsay Dzumbunu  and two directors from MMCZ, is expected to build a strong case against the lobby.

The renewed push for redefinition of conflict diamonds come as the country is having problems of its own. Internally, Government fired top executives from ZCDC on allegations of abuse of office price collusion and illegal sale of diamonds to convicted felons.

Zimbabwe, it seems, is focused on changing the fortunes in its diamond industry. Last week, the Ministry of Mines hosted a 13-member delegation from Botswana’s diamond mining circle for five days.

The Botswana delegation was made up of the Ministry of Mines Botswana, Diamond Hub representatives, Diamond Trading Company representatives and DeBeers sight holder services in line with the Binational Commission Agreement signed by the President of the Republic of Zimbabwe and the President of the Republic of Botswana.  The agreement is in respect of a technical partnership which is aimed at improving the value chain.

Information gathered by Business Times however suggests top officials on the Zimbabwean side of the equation are opposed to the partnership with Botswana on grounds Gaborone is a competitor whose bias is towards maximizing the value of its own diamonds.

The feeling is that Zimbabwe simply needs a partnership on the marketing side of things and not production.

“Botswana produces diamonds therefore they have no incentive to assist us getting into lucrative markets. Our Marange diamonds have been stigmatized by the USA and some NGOs so Botswana will not want theirs associated with us,” said a top source close to developments in Zimbabwe,” a source said.

“Furthermore, Botswana’s partnership with De Beers raises questions given the company’s exploration for diamonds ended in a nasty way amid accusations they were  looting the precious stones under the guise of exploration.”

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