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Blessing Bonga Business Reporter
GOVERNMENT is currently reviewing beneficiation licences and tax laws on diamonds as a way of creating an enabling operating environment for players within the processing value chain of diamonds, an official has said. In a speech read on his behalf at the inaugural beneficiation workshop in Harare yesterday by the director in the ministry, Mr Valentine Vera, Mines and Mining Development Minister Walter Chidhakwa said the move would encourage more players to venture into beneficiation of the country’s gems.
“Just recently, the ministry decided to review beneficiation licences on diamonds, while we are also looking into the taxes charged on these diamonds and we are also looking into various other aspects of the diamond and jewellery policies.
“This will enable us to come up with measures that influence business growth in the sector,” he said.
Minister Chidhakwa also noted that value addition to natural resources is the fastest way to trigger the economy so that revenue realised in value-added products can benefit other critical service sectors.
Speaking at the same occasion, Diamond Beneficiation Association of Zimbabwe chairman Mr Richard Mvududu said his association is prepared to support Government in order to ensure the country generates more revenue through value addition of diamonds and other precious and non-precious stones.
He commended Government for recognising in its new economic blueprint, the Zimbabwe Agenda for Sustainable Socio-Economic Transformation, that value addition and beneficiation clusters are key in the revival and growth of the ailing economy.
“We are committed to support Government for total citizen participation in value addition and beneficiation of our natural resources as enunciated first in the national trade policy, the industrial development policy and more recently Zim Asset.
“It is our hope that the current review of laws relating to the trade and processing of our gems will touch on the issue of very high operating licence fees,” he said.
Mr Mvududu said that in 2011, licence fees for diamond cutting and polishing were pegged at US$20 000 per annum with at least 29 companies licensed, but some were, however, cancelled the same year following allegations of misconduct.
Last year, the fees significantly rose by 400 percent to US$100 000 per annum resulting in a sharp decline in licensed operators from 29 to nine while this year the number has dropped to just one.
Mr Mvududu added that members of DBAZ have invested over US$20 million in polishing and security equipment, training of local skills and research and development.
He said there is need for Government to expedite the review process so that capacity utilisation can be significantly improved.
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