The Antwerp World Diamond Centre (AWDC) said it fully supports Zimbabwe organising local tenders and was “proud” to participate through the tender organizer it proposed – First Element.
Zimbabwe’s first local diamond tender attracted about 400 buyers and 133 companies.
AWDC chief executive Ari Epstein told Rough & Polished’s Mathew Nyaungwa on the sidelines of the second edition of the Zimbabwe Diamond Conference that was convened in Harare early last month that their relationship with Zimbabwe had not been strained with the seizure of the country’s goods worth about $45 million in Belgium by Amari Platinum and a group of Dutch farmers.
A ruling by a Belgian court was set for 4 December, 2014.
He said Zimbabwe understands that the seizure could have happened elsewhere as it was a move granted by [the Paris-based International Court of Appeal] (ICC).
Epstein also praised Zimbabwe for opting a transparent tendering system through Antwerp that brings more confidence to the local diamond industry.
Below are the excerpts.
What is your take on the seizure of the Zimbabwean goods worth about $45 million in Belgium recently?
My take on that is that is very straightforward, you know, it is unfortunately there is a decision by ICC, which is executable everywhere in the world including the Middle East and India, [in fact] all the countries that are signatory to that arbitrary procedure. [However] I have got confidence in the Belgian courts and we will see what will happen.
Did this strain your relationship with Harare?
I think the Zimbabwean government understands that it is unfortunate that it happened in Antwerp but it could have happened in other diamond centres. We were able to provide the tender organizers that is also organizing the [diamond] tenders here in Harare and I think we need to work towards the future not the past. We know that there is an issue there, but for us it’s not an Antwerp issue it’s an international issue of execution or court decisions, but I am sure Zimbabwe will be able to deal with that in the most efficient way possible.
Talking about the future, how do you foresee your relationship with Zimbabwe?
It [will be] super, excellent and you know I have congratulated the minister (of mines Walter Chidhakwa) on the work done in one and half years. Goods were sold in different ways but they have decided to go for the most transparent way - the Antwerp tender system way, and now they are copying the systems all over the world and they are also using it in Harare with the introduction of First Element, the tender organizer that we have introduced, so why would the relationship be strained? The relationship is great and I think if you would ask the minister he would actually repeat that.
So you support the local tenders?
We fully support Zimbabwe organizing tenders at home and we are actually proud to participate in that through the tender organizer that we have proposed. We are proud of that.
Do you anticipate any future Marange tenders in Antwerp?
I think that is secondary, you enjoy the tender that is here, you look at the way we have brought Antwerp companies to bid under the tenders here and we want to make sure that [good] prices will be fetched. I think that is our next step, lets for a moment not talk about Antwerp but let us talk about the fact that Antwerp is here out of friendship and respect and we are proud to be here, and we were able to instigate the changes that have brought us where we are. We are proud of that and I think it’s a clear sign of the friendship and good relation that exist between the Zimbabwean people and the people in Belgium.
Are you engaging Zimbabwe in terms of value addition of their rough diamonds?
Of course, first of all the tender organizer itself, they are using the tender system that we created in Antwerp, you know there is beneficiation that needs to be looked at, which the government looks at, but there is also evaluation and assortment and deep boiling, these are other things that are being looked at and we have proposed to create value addition there and we will continue creating value addition.
Talking of the tender system that you have developed in Antwerp, how do you feel seeing Zimbabwe implementing something that you created?
I feel friendship and pride and happiness when I see it here because that was always the final destination. Antwerp will always be there to continue testing the goods … and prevent what happened last time and we have systems to prevent not only in Antwerp but in other centres, so we make sure that it’s possible if there is a request to access the critical mass at Antwerp, but also to support the tenders that are being organized here.
Lastly, regarding the liquidation of ADB in Antwerp, what is the future as far as the diamond industry funding is concerned?
Antwerp is very strong when it comes to diamond funding and the liquidation will take many years so it’s not something that will affect Antwerp today and of course the ADB story is not over yet there are still negotiations to see what solutions we have in place. There are solutions still on the table so we are looking at it with government and other private players and we are confident that we will be able to get over that and create more value addition and bring new financial institutions. But bringing new financial institutions to the table is only going through transparency. The banks will only finance the diamond industry if it chooses to play the transparency card. Zimbabwe does that through the transparency of the Antwerp tendering system and Antwerp does that through exporting that tendering system to other countries and it brings more transparency to the pipeline and that is bankable and financeable so it goes together in full harmony.
Mathew Nyaungwa, Editor in Chief of the African Bureau, Rough&Polished
