CZI speaks out on fresh US sanctions

Marange Resources on its sanctions list, after the Kimberley Process Certification Scheme approved the sale of local gems.
CZI president Dr Joseph Kanyekanye said it was baffling why the US would take such a decision after the international regulator, KP, endorsed the gems.

The ban on Marange diamonds was lifted last month by the KPCS at a meeting of members in Kinshasa, DR Congo.
CZI said it was now self-evident to those who did not accept that the US had slapped the country (not individuals) with sanctions to cripple the economy.
The advocacy body said sanctions on Mbada and Marange would adversely affect the fiscus, considering the US was a major buyer of diamonds. In 2009 US$19 billion was spent on diamonds and precious stones worldwide.

“This might seem to be a mining issue, but it has wider serious adverse implications, affecting industry and the entire economy of Zimbabwe,” said Dr Kanyekanye.
“This clearly exposes the hypocrisy behind the often touted rhetoric that sanctions are aimed at specific individuals and not the people of Zimbabwe,” he said.

“As CZI, our position on sanctions is well known and fully publicised and we stand by it. We therefore express serious concerns over the sanctions.”
The United States imposed sanctions on Zimbabwe under its Zimbabwe Democracy and Economic Recovery Act of 2001, largely meant to effect regime change.

The US argues that the sanctions are targeted at individuals and companies on its sanctions list, yet the sanctions are in effect targeted at the country.
This is because the Act forbids international financial institutions such as the World Bank, the International Monetary Fund and the African Development Bank from lending money to Zimbabwe – unless approved by the US.

CZI said the US action defied logic and the will of the people who exercised their democratic right in coming up with an inclusive Government after the deadlock in the 2008 national plebiscite.
The industrial advocacy body said the US should have “given peace a chance” for the economy to recover following the formation of the inclusive Government.
Zimbabwe expects to rake in more than US$2,5 billion in diamond revenue after the Kimberley Process approved diamond exports from the country.

This would go a long way in improving the country’s overburdened national purse with only US$4 billion budgeted for expenditure next year.
The country has the potential to produce a quarter of the gems traded globally.