ZMDC, ZIDA urged to support gemstone industry
Zimbabwe Environmental Law Association (ZELA) programs assistant Fadzai Midzi has urged the Zimbabwe Mining Development Corporation (ZMDC) and the Zimbabwe Investments and Development Agency (ZIDA) to support the precious stone and semi-precious stone industry for the realization of the US$12 billion mining industry and the 2030 upper middle-income economy vision.
Rudairo Mapuranga
In 2018, Government adopted the Vision 2030 which reflects the aspirations and determination of the people of Zimbabwe towards a Prosperous Upper Middle-Income Nation by 2030. This national vision is expected to leverage on the diversified mineral resource base of over 55 exploitable minerals to help grow the economy. The thrust of Vision 2030 will be on exports of beneficiated minerals to enhancing benefits from the country’s minerals. It is anticipated that this will be realised through support for local processing of Zimbabwe’s diverse mineral resource endowment, with thresholds for beneficiation and value addition such as cutting and polishing.
In 2019, the Government launched an aspirational goal of achieving a US$12 billion-dollar mining industry by 2023. To achieve this ambitious goal, minerals such as gold, platinum, chrome, nickel, gemstones and diamond are expected to generate revenue through exports. In terms of this policy document, priority is given to investments in exploration, the opening of new mines, beneficiation, and value addition of minerals as well as expansion of projects subject to various commercial and economic models.
Speaking at the 21st Skills for Development for the Gemology Sector Conference held at Jameson Hotel in Harare yesterday, Midzi said ZIDA Act Chapter 14:37 and ZMDC act chapter 21:08 empower or give amend to the organizations to have a responsibility to support the growth and development of the gemstones industry.
Midzi said through section 13 of the act, ZIDA was responsible for supporting the gemstone industry by making investment regulations easy for investors.
“The ZIDA Act is relevant for investment in the gemstone sector and creates a mechanism to attract foreign investors through liberalizing the investment framework, affording investor treatment that is fair and equal, and most notably, that outlawing nationalization of investments.
“The three different investment routes in Zimbabwe, which may be utilised are direct and indirect private investments, investments that are in a Special Economic Zone, and investments for Public-Private Partnerships. Investment in the gemstone sector may be done through any of the three types of investment paths. The ZIDA is an important piece of legislation that can promote investment and export revenue in the gemstone sector as the country is endowed with gemstones whose value is estimated to be around US$2 billion,” Midzi said.
She said there was a need for ZMDC to be involved in the formalization revolution of the semi-precious stone industry. She said, In terms of Section 20, functions of ZMDC include investing in the mining industry on behalf of the State and engaging in prospecting, exploration, mining, and mineral beneficiation. Important to the gemstone sector, is that the ZMDC is also empowered to encourage and undertake the formation of mining co-operatives and to render assistance to persons engaged or intending to mine.
“Given that gemstone miners in the country are mostly marginalised communities in rural areas such as women who mine informally with limited knowledge on how to mine responsibly, value of the stones and capital, ZMDC should be rendering assistance to miners through creating co-operatives or syndicates for women gemstone miners.
“The ZMDC is also tasked with the mandate to review the prospects of the mining industry to recommend to the Minister on proper ordination of all investment programmes. Thus, the Corporation should also be reviewing and exploring the economic potential of the gemstone sector to attract investment,” Fadzai Midzi said.