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Home Anti-Smuggling

Zimbabwe suffers $15 billion loss through diamond and gold smuggling

byCustoms Today Report
28/02/2015
in Anti-Smuggling, International Customs, Zimbabwe
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HARARE: According to the Minerals Marketing Corporation of Zimbabwe (MMCZ) in late 2013, Zimbabwe lost millions of dollars in potential tax that Zimbabwe desperately needed that has further added to multi-million dollar losses through diamond and gold smuggling.

Zimbabwe has lost an estimated $15 billion to illicit financial outflows, with mineral leakages constituting the biggest chunk of this money.
Agate is one of the semi-precious stones being carted out. It is largely unheralded in Zimbabwe, but enjoys a fairly hungry market in other countries, especially China. There are abundant deposits in numerous parts of the country. It is used to make ornaments such as pins, brooches and other types of jewelers, paper knives, inkstands and seals.

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Locals mine agate without licenses in Mukumbura in Mashonaland Central province and get between $6 and $8 when they sell it to international buyers. Government has not bothered to compel the locals to register agate mining because it considers it of little value.

Investigations reveal that Chinese, Mozambican and Democratic Republic of the Congo (DRC) nationals are at the centre of the illicit trade. In areas like Tete, the value of the stone shoots up from $6 to $40.

At least 400 people are working the artisanal semi-precious stone mines in Mukumbura, where they extract aquamarine, tourmaline and red garnet. Bought for less than $30 the same stones fetch up to $8,000 once they cross the border.

The MP for the area where the stones are being mined, Norbert Mapanora, acknowledged that there was illicit trade in the gemstones.

Locals feel that jobs could be created for them if the government took over mining of these precious stones. Environmental damage being caused by the mining operations is also a cause for concern.

Tags: $15 billionlossmineralssmugglingZimbabwe

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