Opinion
Opinion
Africa is rich in diamonds but still poor
For months now, Africa ' s rough diamonds have Concerns about the investment climate been increasing in value but the sale proceeds Benedict Mahona, an economics expert from do not reach the people. Instead, they bene t the University of Dar-es-Salam, told DW that metropolitan elites and the mine companies, the seizure of the diamonds from the which are usually foreign-owned.
Williamson mine was lawful. He explained that the customs laws of the East African Tanzanian police recently struck a blow against Community are unambiguous: Every product internat ional diamond smuggling. A that is imported or exported from the area must consignment of diamonds worth around 28 be correctly registered and declared. " Globally million euros($ 33.4 million) was seized at the operating companies are systematically country ' s main airport. Petra Diamonds, the plundering Africa ' s diamond resources, and biggest listed diamond company in the world, only a fraction of the stones are properly based in the tax haven of Jersey, had registered a declared and have duty paid on them," Mahona consignment of 14 kilos( 30 pounds.) However, said. He also commented that the the� of according to the Tanzanian authorities, it diamonds almost always happens with the help actually weighed 30 kilos. �e rough diamonds of corrupt locals. from the Williamson mine were intended for export to Belgium for processing.
At the same time, with its tough approach the
Tanzanian government runs the risk of �e Williamson mine in the north of Tanzania international companies withdrawing their is a joint venture. 75 percent belongs to Petra business and jobs being lost as a result, Diamonds, 25 percent to the Tanzanian according to Rebekka Rumpel, an expert in government. Tanzania ' s president, John natural resources at the London think-tank Magufuli, has declared that combating Chatham House. " Tanzania ' s tough approach is corruption in the mining sector is a priority for bound to impact negatively on the country ' s his government. His anti-corruption platform image," she says. Rumpel reports that a largescale investor from Russia who wanted to mine played a large part in helping him to power in 2015.
Tanzanian uranium has already put his project on hold, in part because he was worried about
Page20 | Sep- Oct 2017 | FMDZ the investment climate in Tanzania.
Corruption on both sides President Magufuli announced that Tanzanians might take over the diamond mines if the foreign companies continued to be a " problem." Amani Mhinda, an activist with Haki Madini, describes this as " pure populism." Haki Madini is a non-governmental organization that advocates transparency in business. " �at didn ' t work in the past, either," says Mhinda. " Indigenous companies are at least as corrupt as foreign ones.”
Tanzania is more of a mid-level player on the African diamond market. �e East African country is ranked tenth among the continent ' s biggest diamond producers. �e Tanzanian government hopes that by 2025 the mining industry will contribute at least twice as much GDP as it has to date. At the moment its contribution is less than four percent.
Zimbabwe: Diamond money for the state apparatus of repression Diamonds have not brought prosperity to Zimbabwe, either. �ree quarters of people in Zimbabwe, Africa ' s �h largest diamond producer, live in extreme poverty. �e