MMCZ Mulls Export Exemption Certificates for Gemstone Miners
The Minerals Marketing Corporation of Zimbabwe (MMCZ) is actively pursuing the introduction of Exemption Certificates for gemstone exporters, a development that will provide semi-precious mineral miners with more market options while enabling the government to increase accountability for minerals leaving the country.
By Ryan Chigoche
Currently, gemstone miners can only legally sell to MMCZ and its sub-agents, with export regulations being very restrictive. This has created opportunities for foreign buyers who purchase the stones cheaply and then smuggle them out of the country, a situation that benefits neither the miners nor the government.
Zimbabwe maintains stringent controls over its mineral exports to ensure adherence to local laws and to maximize revenue from its extensive natural resources. However, the current export regulations present significant challenges for gemstone miners, often hindering them from legally selling their products outside Zimbabwe. This illicit activity not only damages the local economy but also results in substantial revenue losses for the government.
In an effort to provide gemstone miners with market options while also accounting for the gemstones leaving the country, MMCZ recently announced in Mashonaland West that they will be issuing Exemption Certificates. These certificates will allow miners to export gemstones valued at up to US$10,000 without needing to comply with the full range of export regulations.
“The introduction of an Exemption Certificate from compliance with export regulations will facilitate a more streamlined export process for specified semi-precious stones. An Exemption Certificate could be issued, waiving the need for an export permit and the associated Bills of Entry for export values equal to or less than US$10,000,” MMCZ stated.
“The MMCZ will issue these Exemption Certificates and will account to the Ministry of Mines and Mining Development, the Reserve Bank of Zimbabwe, and the Zimbabwe Revenue Authority (ZIMRA) to ensure compliance with the relevant statutes administered by these institutions,” the authority added.
The Ministry of Mines and Mining Development is responsible for setting policies and regulations, while the Reserve Bank of Zimbabwe (RBZ) issues export permits for all mining companies. The MMCZ, as the sole marketing and selling agent for most minerals (excluding gold and silver), ensures proper valuation and fair pricing. These regulations are designed to centralize oversight and prevent illicit trade, thereby enhancing the country’s ability to benefit from its mineral wealth. However, this has not been the case.
This initiative comes at a critical juncture, as MMCZ reported gemstone exports worth only US$200,000 in 2023. This figure suggests significant smuggling through unofficial channels, as it does not align with actual production levels in the region.
Through this measure, MMCZ aims to open up additional markets and curb smuggling, ultimately contributing to the growth of the local gemstone industry and maximizing economic benefits for Zimbabwe.
However, the authority did not provide clear timelines on when the certificates will be issued, though it comes as a relief to miners.
Zimbabwe has over 40 special coloured gemstones. Mashonaland West Province, where Karoi is situated, is home to several significant gemstone deposits that contribute to Zimbabwe’s rich mining heritage.