De Beers, please give us a break!

The good thing about the New Year is that it brings new beginnings and we always aim to make up where we faltered the previous year and consolidate those aspects and projects that we have been doing right.
There is a freshness that comes with the New Year that gives impetus to a lot of things.

The economy is obviously lining up to benefit from a New Year that comes with new ideas and renewed vigour to achieve.
For our economy, the mining sector looks set to be the major trump card once more. It achieved a 28 percent growth last year, against an initial projection of 33 percent growth.
Improved mining operations, renewed demand, not- withstanding the European debt crisis, should help consolidate economic growth.
The mining sector, often fraught with challenges such as funds for recapitalisation, should rise to the occasion given the interest demonstrated by foreign investors.

The Mining Indaba, launched two years ago, has always been oversubscribed, reflecting huge interest in the money-spinning sector.
You can never go wrong with diamonds, gold, platinum, uranium, and a whole host of minerals in Zimbabwe’s belly.
After the thumbs up from the Kimberley Process, Zimbabwe should now make the most of the latest diamond discoveries which should bring in the much needed funds.

Of course, we still have some hostile countries and institutions to contend with, particularly those on a campaign to ensure the market resists our diamonds.
But the good news is that there is always a way to jump over or go round obstacles.
While Zimbabwe has enemies seeking to frustrate efforts to recover the economy, it also has friends who are willing to go the extra mile to support and facilitate certain processes.

India, one of the world’s major diamond traders, cleared Zimbabwe’s gems.
We carried a story yesterday that enunciated efforts by De Beers to smear blood on our diamonds. The mining firm controls 40 percent of the diamond market.

De Beers efforts are being complemented by the Rapaport Group, which has been attempting to persuade the Indian media to oppose trade in Zimbabwe’s gems.
This is part of a whole grand plan by some bodies to banish Zimbabwe’s diamonds from the world market. However, the God who has endowed this country with the diamonds and other minerals will certainly show up.

India must be commended for standing by Zimbabwe and refusing to bow to pressure from the likes of De Beers and the Rapaport Group.
On its part, Zimbabwe will need to maintain or even step up its aggressive stance on this matter to ensure we claim a fair share of the market and that our gems are sold at the right prices.
Research has already shown that this country has potential to account for 20 percent of the supplies to international markets, with its gems considered to be of better quality.

Financing of the budget will lean heavily on revenue from diamonds. At least US$81 million “fresh money” was received as dividend from diamonds in 2011.
Much more is anticipated this year as the country penetrates the diamond market.

The mining sector, which received lines of credit amounting to US$502 million is generally expected to benefit from further private capital injection, firm international commodity prices and efforts to minimise electricity supply interruptions.

“In 2012, mining is anticipated to remain the major driving force behind overall economic growth, benefiting from further private capital injections, firm international commodity prices and anticipated initiatives to minimise electricity supply interruptions,” said part of the 2012 Budget statement .

Other subsectors such as gold and platinum are expected to achieve better production and revenue figures this year.
While mining will be the major driver, manufacturing, agriculture, tourism and other sectors of the economy should weigh in with improved performance to consolidate economic growth.
GDP is expected to grow by 9,4 percent this year.

Given developments in 2011, this year’s figure looks achievable. It can even be surpassed. The Medium Term Plan says Zimbabwe will be comfortable with a 7 percent annual growth but under the US$100 billion economy by 2030, the economy is said to have potential to grow by 15 percent annual once everything falls into place.

In God I trust!