Zimbabwe’s Centre for Natural Resource and Governance (CNRG) said although it agrees with several issues that are contained in the country’s diamond policy, which was launched late last year, there is need to come up with measures that will enforce diamond mining companies, especially those operating in Marange to be transparent.
The lobby group’s communications and advocacy coordinator Tafadzwa Kuvheya told our African Bureau Editor In Chief, Mathew Nyaungwa that diamond miners in Zimbabwe should publish contracts and agreements to ensure not only transparency but accountability.
She said that government’s argument that revealing details of mining operations in Marange will provide ammunition to countries that imposed sanctions on the miners to harass their buyers was a misleading notion.
Kuvheya said this was rather a convenient tool to cover up for corruption and primitive accumulation of wealth by the privileged minority.
What does the diamond policy launched by the Zimbabwean government in November 2012 entail?
The policy touches on all the major issues central to diamond mining such as exploration, mining rights, ownership, beneficiation, value addition, [and etcetera]. Where we disagree is the lack of emphasis on crucial issues such as revenue transparency, accountability, access to information and the rights of communities. We feel the policy does not mark a paradigm shift from the current challenges dogging the sector.
Can you state the issues in the diamond policy that your organisation agrees with?
CNRG agrees with the sovereign ownership of diamonds by the Zimbabwean people through the state. The policy states that, 'the State shall hold 100 percent ownership of the country's placer diamond', adding that it may choose to partner investors though it retains a controlling stake. This provision is very important as it allows the people of Zimbabwe to maximize benefits from the country's diamond wealth, that is, if government commits itself to upholding best practices in accounting for the revenues. It is important for the state to hold a controlling stake in all diamond ventures so as to widen its revenue base.
The Diamond Policy states that all rough diamonds shall be sold through a Government appointed agency. CNRG believes this is important since diamonds, being of low volume and high value, are subject to smuggling if not properly controlled. This is also in line with the minimum standards of the Kimberly Process Certification Scheme which thrives to ensure that legitimate governments are in full control of diamond exports to minimize chances of diamonds funding conflict.
We also agree with the concept of value addition before export. This initiative has the potential to boost employment creation as well as generate revenue.
Zimbabwe has had several ‘brilliant’ policy papers but the question raised by many is that of lack of political will to implement the blue prints. Will this not suffer the same fate?
The policy ought to be situated within the whole governance spectrum. For the policy to work there ought to be a corresponding diamond law, strong institutions and the political will to govern the sector in a transparent manner.
Mining operations in Marange have been shrouded in secrecy, as Harare argues that it was part of its tactics to circumvent sanctions. Do you agree?
That is a political explanation but we need an economic explanation as to where the diamond revenues are going. The Smith Regime was under UN sanctions for about 15 years. They adopted various sanctions busting measures which benefitted everyone. In actual fact the Zimbabwean economy became very strong during the sanctions regime. In our case there is evidence that the economic gap between the poor majority and the political elites is widening with each passing year. Sanctions have been a convenient tool to cover up for corruption and primitive accumulation of wealth by the privileged minority.
Your organisation suggested that companies be forced to publish contracts and agreements to ensure transparency and accountability. Do you see your exhortation being embraced by policy makers?
Where there is a will there is a way. It is important that measures to promote transparency be enshrined in the diamond policy. There has been indescribable concealment of information pertaining to the agreements between the government and the mining companies. One important facet of public participation is provision of adequate and relevant information. Again this might suffer from lack of political will but CNRG believes this is feasible.
CNRG recommended a strong oversight role by parliament in the mining of the diamonds in the country. How will this improve transparency?
The executive and extractive industries will be brought to account. Parliamentary oversight will provide checks and balances in the diamond value chain.
Are you in support of the indigenisation laws, if not what should be done?
Government must play a leading role in mining by holding a controlling stake in major mining ventures. Nevertheless government needs to build its capacity to negotiate contracts, negotiate prices, value addition and marketing minerals among other things. There is need to hire experts to do capacity building for government
You seem to have a problem with the process that is being used to identify investors in the diamond sector, do you have an alternative?
Investors must be identified in a transparent manner. A multi-stakeholder approach is highly recommended, [that is] stakeholders such as the Parliamentary Portfolio Committee on Mines and Energy and Chamber of Commerce should participate in investor identification.
Your report says that several families that were relocated from Marange are yet to be compensated three years after the beginning of the relocation process. What should be done to expedite this process?
Government must push companies to compensate the relocated families. If government applies pressure companies will respond. But then government is the major shareholder in the diamond mining ventures. A certain percentage of diamond revenues should be set aside for compensation.
The policy is not lucid enough on issues of development led by diamond companies. What should have been set out clearly?
It is a poignant situation that the Zimbabwean law does not compel the diamond companies to lead development programmes. Corporate Social Responsibility is voluntary thereby leaving the companies with the choice of choosing what they would want to term ‘development. To curb this problem, Corporate Social Accountability may be the way to go. However, the policy should set out clearly how revenues from diamonds such as taxes and rents should be reinvested into the economy for the direct benefit of the people of Zimbabwe.
Does Zimbabwe have the capacity to beneficiate its diamonds?
Zimbabwe has the capacity to beneficiate its diamonds. We are not any different from Botswana, which has managed to harness diamonds for the direct benefit of its people and economy while investing the revenue from the non-renewable resource into renewable resources.
How best should Zimbabwe market its diamonds?
An inter-ministerial committee, working together with the parliamentary portfolio committee on mines and energy and the Minerals Marketing Corporation of Zimbabwe should be responsible for diamond marketing. No ministry must be given monopoly over diamond marketing. Diamond marketing should be done openly through the media.
Mathew Nyaungwa, Editor in Chief of the African Bureau, Rough & Polished
