Categories: Stories

Zimbabwe’s diamond theft

As the chapter shows, this phase resulted in major gains for many, both in the area and more broadly. The rapid accumulation of wealth – notably cars and trucks, but also a range of consumer goods – was tangible, resulting in a boom at a time when the national economy was nosediving. I remember being in Masvingo at this time, and young men (and some women) were coming back with a range of smart clothes, music systems, and more.

This all changed in late 2008, when the state announced the privatisation of the diamond fields, expelling the informal miners overnight in a ferocious, violent clampdown. The stories I heard back then were terrifying and the chapters in this book relay them again.

About 200 people are reported to have been killed as security forces enforced the ban, making way for a series of state-sanctioned investments, where the government held a 50 percent stake. A number of these companies became major operators, bringing in huge equipment and massive workforces, including the infamous Chinese company, Anjin, with its close connections to the Zimbabwe armed forces.

In this phase, as Nyamunda shows, the patronage networks shifted. It was no longer the local officials, police and security personnel who were involved, but this now all moved to a much larger scale. This was the period, during the GNU, when ZANU-PF were re-establishing their base, and diamond money was an important source, and when what some have called a parallel or shadow government was in place.

It was also a period when some senior party and military/security officials gained huge wealth. The book mentions the then minister of mines gloating that he was the richest cattle owner in the country. Certainly across Matabeleland the building boom associated with his tenure in office is legendary.

Ironically, from 2009 was the period when Zimbabwe re-entered the Kimberley Process, and Zimbabwe’s diamond trade became legal. Certification requires formal mining by companies, and not informal systems, and the privatisation with government oversight ensured compliance. This period is when theft became legal.

In 2013 a brave parliamentary portfolio review exposed some of the extent of the looting that had gone on following an in-depth, although obstructed, investigation. The cries of Tendai Biti were reinforced. But still these went unheeded, and the diversion of funds on a massive scale continued.

We do not know why the president decided suddenly nationalise the diamond industry in 2016 and put it all under a single body. Many are crying foul with court cases challenging the decision.

The official rationale was that this was to stamp out corruption, and ensure revenues flow to the finance ministry. Of course the on-going attempts to woo the international community by Finance Minister Patrick Chinamasa under the banner of economic reform must have played a part.

Continued next page

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This post was last modified on January 23, 2017 12:19 pm

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Charles Rukuni

The Insider is a political and business bulletin about Zimbabwe, edited by Charles Rukuni. Founded in 1990, it was a printed 12-page subscription only newsletter until 2003 when Zimbabwe's hyper-inflation made it impossible to continue printing.

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