Zim targets jewellery producing market

30 Sep, 2016 - 00:09 0 Views
Zim targets jewellery producing market

The ManicaPost

Kudzanai Gerede Business Correspondent

Zimbabwe plans to maximise on revenue flows from its rough diamonds by venturing into the lucrative global jewellery-making business as the country accelerates on value addition of its mineral resources, Mines and Mineral Development Minister Walter Chidhakwa has said.

Welcoming the Kimberly Process Certification Scheme (KPCS) Chair Mr Ahmed Bin Sulayem of the United Arab Emirates at his ministerial offices in Harare on Monday, the minister said the country’s diamond industry has gone through a vigorous transformation process during the past year to ensure accountability of its gems and is now vying to venture into manufacturing of jewellery.

The KPCS chair was in the country for a one day tour of the diamond fields in Chiadzwa which was part of his familiarization tour of diamond operations in Africa.

Most African diamond producing countries are exporting raw diamonds which was negatively impacting on potential profits which stems from cutting and polishing of diamonds and jewellery making.

Proceeds from diamond sales have been worsened by a decline in international commodity prices in recent years hence the need for value addition.

“The diamond industry in Zimbabwe has been transformed significantly over the last few years and months. We continue to experience changes in the diamond industry, new structures that we hope will contribute towards greater exploration, greater mining of diamond and ensuring that our diamonds are indeed for the benefit of the communities in Zimbabwe.

“We feel we can make a contribution to the international diamonds industry by providing good quality diamonds and ensuring the cutting and polishing of diamonds and ensuring the jewellery making activities can be supported. We also want to be a part of that jewellery making community, that value addition that is happening in other parts of the world,” he said.

The manufacturing of jewellery is expected to create strong diamond sector value chains with the capacity to create massive employment opportunities, widen tax base for Treasury and expansion of the country’s export basket.

The US$ 80 billion global diamond jewellery industry has shown resilience over the past years and is projected to grow marginally at 3,19 percent over the period 2015-2019 despite demand for luxurious items soaring due to slow down in global economy which has a direct bearing on consumer power.

Analysts say the country should not be deterred from venturing into the lucrative diamond jewellery producing business based on current global economic circumstances which have seen prices falling by 25 percent in 2015 projecting a rebound on demand from global consumers like China, USA and the Midddle East in the near future. In line with value addition efforts, Zimbabwe has already set up a US$200 million diamond cutting centre in Harare’s Mt Hampden area.

The KPCS chair said his mission was pleased with touring the country after successfully advocating for the country’s readmission into the Kimberly Process. He however said the KPCS was concerned about massive financial losses most African diamond producing countries were succumbing to as a result of under pricing of their resources which will be a major issue during his tenure as the chair.

“We have key areas that will be critical in my tenure as the chair and that will be assisting Africa through the rough diamonds evaluation initiative which we started 10 months ago  and we have received support. We are getting phone calls from entities and organisations that are willing to assist African diamond producing countries to know the value of their diamonds before they leave for international auction floors,” said Mr Ahmed Bin Sulayem.

The diamond industry is expected to spur mining sector growth following the restructuring exercise by Government to stop seven joint venture mining companies who have mined in Chiadzwa since 2008 and setting a wholly state owned entity,  the Zimbabwe Consolidated Diamond Company (ZCDC) to preside over operations in the area.

As at June 31, ZCDC had sold 513 000 carats valued at US$21,5 million in three months since March this year, compared to around US$ 600 million realised by Government from joint venture companies that operated in Chiadzwa.

 

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