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THE private sector in Bulawayo should start exploring opportunities in mineral beneficiation and set up diamond and gold refinery centres that will increase business activity in the city, a consultant has said.
Kwanele Hlabangana, a business consultant and country representative for the Botswana-based Afrimond Diamond and Jewellery Institute, said Bulawayo was well-placed to tap into precious mineral beneficiation opportunities.
“Zimbabwe is endowed with several precious minerals such as gold, diamonds and emeralds and Bulawayo can derive more economic benefits from the beneficiation industry,” he told Business Chronicle.
Hlabangana said the fact that Bulawayo was surrounded by gold-rich mining areas in the southern region, was in itself a positive factor for the setting up of mineral beneficiation centres in the city. He challenged businesses and entrepreneurs in the city not to shy away from exploring opportunities in the diamond industry.
“I know some people are saying diamonds are just for Manicaland and Harare people. But diamond polishing and cutting centres don’t necessarily need to be placed at the resource areas and that is the trend the world over,” he said.
Bulawayo, said Hlabangana, can run vibrant diamond beneficiation centres that would attract wealthy people from across the globe, a move that would also boost the tourism sector.
“There’re vast opportunities in washing, cutting and polishing of diamonds. Bulawayo can set up jewellery design and manufacturing centres. There’re other lucrative spin-offs in human skills development, consultancy and marketing services for refined products,” he said.
“This is an industry with a long value chain. With such an industry more security is needed and our security and construction firms stand to benefit as well. The buyers who would come here would boost tourism and there’d be a need for more structures.”
Hlabangana said there was no need to centralise all major economic services in Harare but the nation stands to reap huge dividends in decentralised economic growth. He, however, bemoaned what he termed “a business information black out”, which he blamed for closing out city businesses from taping into major investment opportunities.
“My institution is mobilising the business community and stakeholders for a diamond beneficiation seminar at the end of this month here in Bulawayo. We want to discuss these issues and assist in developing the city and the national economy,” said Hlabangana.
“We’ve since written an invitation letter to the Minister of Mines and Mining Development Walter Chidhakwa to grace the meeting. The youth, industry, entrepreneurs and academics are free to attend.”
Zimbabwe’s diamond policy, supported by the Minerals Act as amended and the Precious Stones Trade Act, as amended, under the beneficiation section, provides that a quota of all locally produced rough diamonds shall be reserved for local beneficiation.Beneficiation and value addition are at the heart of the government’s economic blueprint, Zim-Asset.
Today the country hosts the 2014 Zimbabwe Diamond Conference, which is set to unlock the industry’s potential and foster increased contribution to the economy.
There has been increased interest in the country’s mining sector after the discovery of diamonds in Chiadzwa, Manicaland province, a few years ago.
The exploitation of the mineral, given the establishment of the local diamond auction centre in Harare, is expected to increase revenue to the fiscus. There are also reports of diamond discoveries in other parts of the country such as Beitbridge and parts of the Midlands, raising the potential for increased growth.
Online Reporter