Zim losing half of its diamond earnings

VINCENT MHENE

Zimbabwe is losing  more than half of its potential  diamond earnings, largely  as a result of sanctions  and negative perceptions on the international market, it has emerged.

Apparently, the Minerals Marketing Corporation of Zimbabwe (MMCZ), the country’s mineral marketing body is forced to apply  discounts of more than 50% on the gems as they are deemed high-risk metals,

Ezekiel Mafara, the MMCZ sales executive  confirmed the development saying the local diamonds are sold  to buyers who are prepared to take a chance on Zimbabwe’s trade restrictions  for half  of the market price.

“We have to discount by as much as 40% to 50% discounted prices because of that. You will find that if the product is going for US$100 per carat, the price you will get here is around US$40 or US$50 per carat because of challenges that have been brought by negative perceptions and sanctions,” Mafara said.

Global markets like Antwerp, Belgium, and Dubai use an auction system to sell diamonds, but Mafara claims that because of sanctions, Zimbabwe is finding it difficult to sell its valuable stones.

According to him, only a small number of buyers were prepared to take the risk since Zimbabwe’s diamonds were being shunned by the market.

“You don`t get the clients easily and those who come are those who brave the risk, who are willing to take the risk and because of that, we have to discount. Most of them specifically have companies that have ways to get the product out of the country into their markets,” he said.

Mafara added: “Although these buyers are aware, the people who put these sanctions are continuously on the market monitoring how we manage to sell the diamonds and they squeeze. They close all the gaps, so it gets tougher and tougher every time.”

The government of Zimbabwe has  claimed that it has lost more than $150bn due to economic restrictions since the West imposed sanctions on the country in 2001.

Additionally, the diamond mining sector has not been spared.

Negative media coverage of Zimbabwe, according to Mafara, is also hurting the gemstone market, with some prospective buyers voicing concerns about alleged conditions in the nation.

There are just four companies licensed to mine the gemstone in Zimbabwe namely Anjin Investments, Alrosa, Murowa Diamonds, and Zimbabwe Consolidated Diamond Company.