The diamond export figures released by the Kimberley Process (KP) last August showed that Zimbabwe shipped 7.7 million carats of diamonds valued at $422.9 million.
However, these figures were greeted with skepticism in a country where critics say that diamond revenue from Marange was being siphoned by political heavyweights for self aggrandisement at the expense of the general populace teeming in poverty.
One of the cynics is the Centre for Research and Development Director Farai Maguwu.
He told our African Bureau Editor In Chief, Mathew Nyaungwa in an exclusive interview that the KP figures were sourced from the Zimbabwean government and there is every reason for one to doubt their trueness.
Maguwu said that the figures were understated as a way of silencing critics.
He said that Zimbabwean diamonds were on high demand and could be way above $100 per carat not $54.31 per carat as stated by KP.
Below are the excerpts.
What is your analysis of the 2011 production data released recently by the Kimberley Process, which showed that Zimbabwe produced 8.5 million carats?
The KP figures are the official figures from Zimbabwe. However these figures can’t be trusted given that government says sanctions are hindering normal diamond transactions, hence they are resorting to selling some of their diamonds secretly. I am not sure if the diamonds that are sold secretly are part of the KP statistics. I, however, think the stated figure is way below the actual. Zimbabwe could now be among the top two diamond producers in the world [by volume].
Diamonds exported from Zimbabwe recorded an average price of $54.31 per carat last year. What does this say about the quality of diamonds produced in Marange?
I do not believe Marange diamonds are that cheap. I am persuaded to think these prices are for the media only, the true value of Marange diamonds are known by the sellers and the buyers. These potentially misleading figures may be given to silence growing skepticism and frustration among the Zimbabwean people who keep being told to be patient whilst a few individuals are lining their pockets. The actual value of Zimbabwean diamonds could be way above $100 per carat. The diamonds are performing very well on the market; it is the government, which is failing to perform for its people.
Mines Minister Obert Mpofu argued that Zimbabwe was selling its gems at a low price as a result of sanctions imposed on diamond companies mining in Marange. What is your take?
Sanctions or no sanctions, there is no justification why his Ministry is not remitting all diamond revenues to treasury. The problem is corruption, not sanctions. Whilst Zimbabwe cannot formally sell its diamonds to Europe and the USA, the country can sell its diamonds to many countries in the East such as China, India and UAE. In fact we have never heard government saying it has stockpiled diamonds and there are no buyers. India alone has said it can buy all diamonds produced in Marange at competitive rates. Sanctions have been abused by the Zimbabwe government to justify all sorts of bad governance practices.
Are diamonds an answer to Zimbabwe’s economic problems?
Diamonds could be an answer to Zimbabwe’s problems, only if there is political will, integrity and cohesion in government. However with the look of things there is no right thinking Zimbabwean who can say diamonds will positively impact on the economy any time soon. It’s purely a corruption virus that is standing between prosperity and poverty for Zimbabwe. Zimbabwe must learn from Botswana how to translate natural wealth into material benefits for the whole country
The organisation that you lead is constantly monitoring developments in Marange. Is the country still witnessing leakages in the diamond fields?
Yes, diamonds continue to be smuggled out of Marange. The number of artisanal miners has significantly gone down. The biggest diamond smugglers are formal employees in Marange, particularly those employed by Anjin.
What is being done to promote diamond beneficiation in Zimbabwe?
A new diamond policy will soon be put into effect. It addresses the issue of beneficiation. However the beneficiation process is likely to be as controversial and political as the diamond mining and marketing itself.
We understand a Russian company and a local trust are set to mine diamonds in Chimanimani. What do you know about this deposit?
The Chimanimani deposit to be mined by DTZ OZGEO is part of the Marange belt. However little is known about the quality and quantity of the deposit due to the secretive nature of diamond mining in Zimbabwe.
What do you think about the current KP chairperson’s push for the re-definition of conflict diamonds?
Together with my colleagues in the KP civil society coalition, I fully support the KP chair’s vision of reforming the KP. However, the reform process is likely to face challenges from countries where human rights, transparency and accountability are anathema to their systems of governance.
Some critics say that this drive to change the definition of conflict diamonds was targeted at countries such as Zimbabwe. What is your take?
The move is not targeting Zimbabwe but rather Zimbabwe gave the KP a wake-up call to the new forms of conflict diamonds. As an institution the KP has to respond to new challenges by reforming itself, especially having been caught napping by the Zimbabwe crisis.
KP will be celebrating its 10th anniversary next year. Can you say that it has managed to achieve some its set goals during this decade?
The best way to measure the success of the KP is to imagine what would have happened in the past decade if the KP was not there. The KP managed to create a platform where most of the stakeholders in the diamond sector can come together and work towards eliminating conflict diamonds. The KP is credited for de-motivating rebel movements from using diamonds to fund wars. Since its inception in 2003 no diamond funded full scale war has taken place in the diamond producing countries. Though it was sluggish in its response, the KP managed to bring some normalcy to Marange diamond fields through offering technical support and continuous monitoring of the diamond fields. However a lot still needs to be done to ensure that the KP is strengthened to deal with diamond funded oppression and human rights abuses in the diamond producing areas.
Mathew Nyaungwa, Editor in Chief of the African Bureau, Rough&Polished
