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President Mnangagwa Advocates Technology as Key to Africa’s Economic Liberation
THE dream of modernising and industrialising Zimbabwe and the entire African continent will not be complete without incremental beneficiation of diamonds and other precious minerals, and embracing new technologies and innovations, particularly by young people, President Mnangagwa has said.
Officially opening the 9th ordinary meeting of the African Diamond Producers’ Association (ADPA) Council of Ministers Conference here yesterday, President Mnangagwa said the time has come for Africa to translate its vision to grow its value addition and beneficiation base by scaling up the value of export earnings from the proceeds of precious minerals such as diamonds and gold.
This would be done through the adoption of the “Whole of Society Approach”, which embraces both formal and informal structures in pursuit of common societal goals and policies.
He said this must be prioritised and complemented by set targets of increasing production thresholds.
Zimbabwe is among the prime diamond investment opportunity destinations in the region and the country hosted the high-level conference in its capacity as chair of ADPA. It will pass on the rotational assignment to Sierra Leone.
While Africa contributes more than 60 percent of the global natural rough diamonds, the President said it was disheartening that the continent’s voice remains overshadowed by Western powers and some foreign market players who impose unilateral restrictions on the trading of natural diamonds.
He called on African producers to stand up and fight for their space and interests.
“Our collective voice must be heard and greater collaboration, cooperation, and partnerships remain the panacea to win-win benefits and prosperity within the diamond mining sector.
“Let us all take charge of the future of the sector more so given the numerous benefits natural diamonds bring to our communities and economies.
“It is only through cutting and polishing of diamonds, which is the most complex stage of diamond production, that as Africa, we will be able to unlock more value, get access to new technologies as well as capacitation of local staff in the trade.
“This should be complemented by the opening of new mines, benefiting from ongoing exploration projects, expansion of existing projects and increased capacity utilisation,” said President Mnangagwa.
He challenged African diamond-producing nations to move beyond narratives of whether its natural resources are a blessing or a curse.
The President said there is need for African countries to lead by example in making their communities feel the positive impact of mineral exploitation, through sustainable empowerment projects whose legacy lives on even when mining operations have ceased.
This includes ensuring that positive investment spin-offs trickle into downstream industries such as suppliers, employees and customers alike.
“We must be awake and leverage on our natural resource endowments to build our beloved continent brick by brick, stone upon stone and step by step,” said the President.
“Given that our diamonds are a finite resource, we must not accept trinkets but corporate social investment projects that have far-reaching impacts on the productivity and quality of lives of benefiting communities. These must dovetail with our broader national and continental development agenda.”
On its part, Zimbabwe was forging ahead with key policy initiatives in the diamonds sector towards increasing the quota policy for local diamonds beneficiation and value addition.
“In the case of Zimbabwe, the diamond sector has been on an upward growth trajectory in terms of both production output and revenue generation,” he said.
“We take pride in the good relationships that exist between diamond mining companies (Zimbabwe Consolidated Diamond Mining Company, Anjin Investments, Rio Zim Murowa Diamonds), and local communities.”
President Mnangagwa noted with regret the declining prices of natural diamonds in the post-Covid-19 era, which he said has been worsened by the increased competition from man-made diamonds, macroeconomic headwinds and tighter liquidity conditions on the global market.
Already delegates to the conference were alarmed over reports that the share of man-made diamonds, which was just 2.4 percent in 2020, rose to 9,3 percent in 2023, which is a jump of about 6,9 percent over three years.
This calls for African technocrats and players in the sector to think outside the box and help mitigate such risks towards protecting the natural diamonds sector, President Mnangagwa added.
“I exhort us to change our mindsets and take pride in the consumption of value-added products from our gold, diamonds, lithium, cobalt, cocoa, natural oils and leather products, among many others. We must be consumers of our products and not merely producers,” he said.
President Mnangagwa also reiterated the importance of mining players’ role in minimising ecological disruption through embracing ethics and balancing profitability with good environmental management practices and socioeconomic sustainability.
Vice President Dr Constantino Chiwenga, Mines and Mining Development Minister Zhemu Soda, Matabeleland North Provincial Affairs and Devolution Minister Richard Moyo, senior Government officials and foreign and local delegates attended the conference, which began on Tuesday and ended yesterday.
Source: Herald
Harare, Zimbabwe | President Emmerson Mnangagwa has commended the Zimbabwean diaspora for playing a pivotal role in attracting foreign investors to the country, aligning with the ‘Zimbabwe is open for business’ initiative.
This policy facilitates the influx of much-needed capital, strengthening the nation’s economy.
The President expressed his appreciation during his keynote speech at the closing ceremony of the second edition of the Zim Afro T10 cricket tournament, held at Harare Sports Club.
“I extend my heartfelt gratitude to our diaspora community for their tireless efforts in convincing investors to bring their resources to Zimbabwe, particularly in the realm of cricket,” said Mnangagwa.
He emphasized the importance of inclusivity, stating, “Together, we will ensure that no one and no place is left behind, especially in sports.”
Looking ahead, Mnangagwa urged the Ministry of Sport, Recreation, Arts and Culture, along with Zimbabwe Cricket and other stakeholders, to channel efforts toward grassroots development, ensuring that opportunities reach village level.
The President was among a large audience witnessing the final match. He was accompanied by UAE billionaire Shaji Ul Mulk, founder and chairman of T Ten Global Sports, Home Affairs Minister Kazembe Kazembe, and award-winning diasporan investor Dr. Paul Tungwarara, closely following the game.
In April 2022, under Mnangagwa’s leadership, Zimbabwe’s Second Republic approved projects worth USD 1 billion from Mulk Holdings. Dr. Tungwarara initially brought Mulk into the country, and Mulk has been instrumental in organizing the T10 tournament under the banner of T Ten Global Sports.
President Mnangagwa also highlighted the tournament’s vast international reach, noting that it is broadcast live in 100 countries with an audience exceeding 400 million viewers, providing significant global exposure for Zimbabwe.
The recent release of Harare’s Town Clerk has uncovered a web of corruption involving high-ranking officials and legal professionals, exposing the ongoing corruption undermining the city’s governance.
At the center of this scandal is the law firm Guwuriro and Associates, which played a key role in the Town Clerk’s release. The firm has a history of manipulating legal processes for their clients’ benefit, often at the expense of justice and transparency.
Vongai Guwuriro, the Acting Chief Magistrate and a key figure in securing favorable outcomes for her husband’s firm, has raised further concerns about judicial integrity. Guwuriro previously attempted to grant bail to the same Town Clerk, who had secured bail under suspicious circumstances in an earlier case, setting a troubling precedent.
Court records reveal that Town Clerk Chisango, as the Accounting Officer, fraudulently awarded a street lighting contract to Juluka after reducing the budget from $45 million to $15 million, narrowing down the bidders from four to just two. Despite these manipulations, the procurement authority PRAZ refused to endorse the deal. Chisango’s claim of ignorance, along with his lawyers’ defense, is seen as a weak excuse for his actions.
Key figures in the Town Clerk’s release include Public Prosecutor Mapfuwa and legal partner Vhiriri, who worked together to secure the controversial bail despite charges of criminal abuse of office, mismanagement, and embezzlement. Local councillor Abdurrahman Sapa (“Abdul”) also played a crucial role by leveraging his connections with the judiciary to facilitate the Town Clerk’s return to duty, in violation of bail conditions.
Reports suggest that a $50,000 bribe was paid to ensure the Town Clerk’s release, implicating several individuals in the bribery scheme. The lenient bail conditions, which only require the Town Clerk to report to the police once a month, have sparked outrage, as they allow him to resume work, potentially intimidating witnesses in his ongoing cases.
The preferential treatment given to the Town Clerk contrasts sharply with the denial of bail to other individuals implicated in the same scandal. Moreover, while a directive from the Ministry of Local Government states that council employees should not return to work until their court cases are resolved, Chisango and his associates continue to violate these rules. He has even publicly claimed to have the support of Zimbabwe’s President.
As the officer responsible for signing contracts, the Town Clerk’s actions raise serious concerns about accountability and justice. Harare residents deserve transparency from their officials, and the misuse of public funds must be addressed. The scandal has highlighted the deep-rooted corruption in Harare’s administration, and it is essential that all those involved are held accountable to restore trust in the city’s governance.
Delta Corporation Limited’s associated entities are expressing concern about the adverse effects of counterfeit and smuggled imported goods on their operations.
African Distillers (Afdis) has reported that its business is suffering due to illegal brews produced in informal settings and wines and ciders smuggled into Zimbabwe. This influx has notably hindered their volume growth, as consumer preferences shift towards these alternative products.
Similarly, Schweppes Zimbabwe, another Delta associate, has observed a rise in smuggled imports of its popular Mazoe Orange Crush from regional markets. Challenges such as the sugar tax and market access regulations have also negatively impacted the company’s volume performance.
The increase in smuggled and counterfeit goods is largely attributed to inadequate border controls. There have been allegations of complicity among some immigration officials and Zimbabwe Revenue Authority (Zimra) personnel in facilitating these illicit activities.
Despite existing laws and enforcement efforts, the market continues to be flooded with unauthorized products. The Consumer Protection Commission (CPC) has noted that some of these illicit products are manufactured locally in unregulated settings or smuggled through poorly guarded border points, leading consumers to choose cheaper, lower-quality options.
The situation has been worsened by foreign traders’ preference for US dollars, which has incentivized smuggling activities. Local businesses and SMEs are struggling with this unfair competition from goods that bypass formal import channels.
Schweppes Holdings Africa Limited reported a 12 percent decline in volume for the quarter, primarily due to significant price hikes from the sugar tax affecting their cordials. The company also faced challenges from informal imports of Mazoe Orange Crush and disruptions related to market access regulations, according to Delta’s company secretary, Faith Musinga.
Industry leaders suggest a collaborative approach involving various stakeholders and the private sector to tackle the issue. Despite these challenges, Schweppes Zimbabwe saw positive results in juice drinks and bottled water volumes following the installation of a new plant in October 2023.
Afdis also experienced a six percent growth in wine and cider volumes for the quarter compared to the previous year, despite the increased presence of informal imports and counterfeit products. Afdis reported a revenue of US$12.6 million for the first quarter ending June 30, 2024, maintaining consistency with the same period last year.
Managing Director Stanley Muchenje noted that revenue was affected by changes in sales mix and price adjustments made to maintain market share against both imported goods and local affordable spirits.
Looking ahead, Delta Corporation is focusing on leveraging anticipated economic growth driven by infrastructure projects, tourism, mining, and increased remittances from the diaspora to support future growth.
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