‘Accurate gemstone evaluations to boost economic gains’

Business Reporter

AS Africa continues to leverage its abundant mineral resources, industry leaders have stressed the critical need for accurate evaluations to drive value addition and maximise economic gains.

Transcontinental Gems chairperson Mr Percy Zenda, during a Government and players interface last week, highlighted the pivotal role of precise assessments in the gemstone sector.

“Understanding the intrinsic qualities of stones before valuation is crucial for our continent’s growth,” he emphasised. “Spot-on evaluation is crucial in any African country. If we understand the stones before valuing them, it will greatly benefit us.”

Mr Zenda pointed out the need for collaboration between stakeholders such as Zimbabwe Consolidated Diamond Company, Murowa Diamonds, ANJIN, Minerals Marketing Corporation of Zimbabwe and Government bodies to ensure effective value addition post-mining.

He emphasised: “We need spot-on evaluations to achieve desired results after value addition.”

Highlighting the sector’s potential, Mr Zenda stressed that partnerships could enhance value addition, making African gemstones more competitive globally.

“The largest consumers of premium diamonds are America and China, appreciating the beauty and size of African stones, including fancy stones,” he noted.

The Government has taken steps to develop a robust framework for gemstone marketing amid concerns over revenue loss through smuggling.

Permanent Secretary in the Ministry of Mines and Mining Development Mr Pfungwa Kunaka underscored these efforts.

“There is a need for a regulated marketing arrangement to prevent revenue loss,” he stated. “Training miners in proper mining and valuation practices is crucial.”

At the inaugural gemstones conference held in Harare in 2022, Mines and Mining Development Minister Winston Chitando urged industry stakeholders to contribute recommendations for Zimbabwe’s gemstone development policy.

He reiterated the Government’s commitment to structured reforms in the sector.

“The development of a gemstone policy is critical to ensuring that the country retains value from its mineral wealth,” Minister Chitando said then. “Stakeholders must collaborate to establish a transparent and formalised gemstone market, ensuring maximum benefits for local communities and the national economy.”

To support this goal, discussions on introducing gemstone auctions have gained momentum.

“We are considering gemstone auctions in places like Karoi or Chinhoyi, where producers and buyers can meet,” Mr Kunaka said. “These discussions are preliminary, and a formal time frame for implementation is yet to be set.”

Experts in the sector have welcomed these moves. Mining consultant and gemstone valuation expert Dr Linet Moyo believes structured reforms will enhance Zimbabwe’s position in the global gemstone trade.

“Zimbabwe is home to some of the world’s finest semi-precious stones. If properly valued and marketed, these gemstones can significantly contribute to national revenue and attract responsible international buyers,” she said.

Similarly, Precious Stones Association chairperson Mr Tawanda Nyamukapa emphasised the need for local capacity-building.

“A well-regulated gemstone market, coupled with training initiatives, will empower artisanal and small-scale miners,” he noted. “Formalised auctions will eliminate middlemen and ensure fair pricing, benefitting both miners and the economy.”

The Zimbabwe Miners Federation has also played a vital role in advocating a structured approach to gemstone mining through initiatives like the National Gemstones Miners Association.

These efforts align with the country’s broader economic strategy, where mining constitutes a significant portion of export earnings and gross domestic product.

As African nations strive to enhance their gemstone sectors’ competitiveness and economic impact, the emphasis on accurate evaluation and structured marketing frameworks remains pivotal.

Through fostering partnerships and regulatory frameworks, stakeholders aim to secure sustainable economic benefits from Africa’s rich mineral wealth on the global stage.