Zimbabwe forced to sell its diamonds at a discount because of sanctions

Zimbabwe is selling its diamonds through unconventional means at 25 percent below the normal price because of international sanctions against the country, a report in the Times of India said.

This has, however, become a bonanza for diamantaires from India’s Surat who cannot afford the more expensive diamonds available on the world market.

The Kimberley Process which regulates the world’s diamonds cleared Zimbabwe two years ago but the European Union and the United States have maintained sanctions on Zimbabwe’s diamonds from Marange.

Since the diamonds are clean diamantaires from India face no technical difficulties in bringing the diamonds into their country.

Finance Minister Tendai Biti has persistently complained that he is not getting revenue from the Marange diamonds. He budgeted that elections this year will be paid for by proceeds from the diamonds.

According to the Times of India, a senior office-bearer of Gems and Jewellery Export Promotion Council said: “Zimbabwe’s cheap diamonds are attracting Indian diamantaires, especially small and medium buyers. They bring the diamonds to India paying cash in order to keep their factories running.”

Rakesh Patel, a diamond dealer in Mahidharpura diamond market, said, “The industry is not in a position to buy rough diamonds sold by mining companies like DTC and Alrosa as the value of rupee has depreciated against the dollar. Zimbabwe diamonds have become the cheapest option now.”

Zimbabwe expects diamond production in Marange to increase to nearly 17 million carats this year, a 1 000 percent increase in three years.

(38 VIEWS)