AAG position paper at KP diamond conference

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Below is the full text of the Affirmative Action Group’s position paper presented at the ongoing Kimberley Process conference in Jerusalem, Israel.

‘Affirmative Action’ defined

Affirmative Action refers to positive steps aimed at increasing the inclusion of historically excluded groups in employment, education and business. Such steps are not designed to offer preferential treatment to, or exclude from participation, any group. To the contrary, Affirmative Action policies are intended to promote access for the traditionally underrepresented through heightened outreach and efforts at inclusion.

Affirmative Action Group profile

The Affirmative Action Group (AAG), is a black economic empowerment pressure group in Zimbabwe that promotes the broad-based economic empowerment of indigenous Zimbabweans in areas of business, education and employment.

AAG President Supa Mandiwanzira

Its main focus is the promotion of entrepreneurial development of micro business for the indigenous Zimbabweans and the inclusion of local communities in the commercial exploitation of their natural resources. AAG is one of the prominent and leading organisations of the Zimbabwe Civil Society.

The group, which is self funded, has plus 100,000 individual and corporate membership and strong active structures across Zimbabwe. Its membership also includes 18 affiliate organisations.

Established In 1994 by Zimbabwe’s business luminaries including telecommunications mogul Strive Masiyiwa, the group is credited with the promotion of indigenes of Zimbabwe into key and influential positions in business and the promotion of black small enterprises.

Our conviction is that the indigenous people must be at the center of all economic activities and must significantly benefit from the abundant natural resources that Zimbabwe is so blessed with.

Certification of Marange Diamonds

Zimbabwe is currently reeling under economic hardship caused by the direct and indirect illegal economic sanctions imposed by the USA, Australia, Canada and European Union.

Thousands of Zimbabweans have died due to curable diseases, many others have been forced to leave their families in search of jobs in the region and overseas. Zimbabwe which used to have the second biggest GDP in the region is now ranked second worst as it suffers under these illegal economic sanctions.

In fact, Zimbabwe’s GDP stands at less that 5% of the General Motors (USA)’s annual turnover. The middle class has disappeared as more than 90 per cent of workers earn less than US$200 per month. Foreign aid continues to be cut leaving many Zimbabweans struggling in dire poverty.

Unemployment is extremely high as local companies fail to capitalise because foreign lines of credit have been cut under the sanctions regime. Educational institutions like universities have been denied access to technology and materials because of the illegal sanctions.

With the discovery and commercial exploitation of diamonds, millions of ordinary Zimbabweans have pinned their hopes for a better future on the Marange resource. Civil servants are hoping for better salaries, school children want more text books in their schools and everyone wants to see a more functional health delivery system where basic pain killers can be available in all clinics.

Diamonds in Zimbabwe have become what oil means to Saudi Arabia. AAG recommends that the rough diamond mining in Marange be accorded the Kimberley Process Certification. Further, it is important that our diamond industry remains a key player in the Kimberley Process to ensure that the world curbs the illicit trading of “blood” diamonds.

Zimbabwe, as the founder member of KPCS, has already met the minimum KPCS requirement through the exports of diamonds by Murowa Mine, River Ranch and the supervised exports of Marange diamonds as confirmed in the summary report by the Review Mission Chairman and Kimberley Process monitor, Mr Abbey Chikane.

AAG notes with satisfaction that Zimbabwe has stayed the path of the Kimberley Process despite unmitigated frustration and political chicanery by some Kimberley Process members who have imposed unilateral economic sanctions on our country. This level of restraint by the Zimbabwe Government must be acknowledged and not be misconstrued for weakness in our view.

We urge all members of the Kimberley Process to avoid the politicisation of an organisation whose ideals the AAG and the people of Zimbabwe cherish. Members of the Kimberley Process must stand up to the arrogance of minority member countries who want to mix their political objectives in Zimbabwe with the diamond business.

The Kimberley Process was established to stop diamonds aiding politics and rebel regime change and similarly diamonds must not be used as a tool for western regime change in Zimbabwe.

Illegal Economic Sanctions Explained

The Zimbabwe Democracy and Economic Recovery Act of 2002 imposed by the Bush Administration and subsequently renewed by the Obama administration empowers the United State to use its voting rights and influence (as the main donor) in multilateral lending agencies, such as the IMF, World Bank, and the African Development Bank to veto any applications by Zimbabwe for finance, credit facilities, loan rescheduling, and international debt cancellation.

We are therefore not surprised that USA is not supporting the restoration of Zimbabwe’s diamond export status. European Union sanctions crafted to target certain individuals in Zimbabwe in terms of travel restrictions and economic activities, have created reputational risk for the entire country and consequently affecting ordinary Zimbabweans. It is apparent that if Zimbabwe realises its full economic benefit, these sanctions, will be rendered ineffective.

At the recent Mines To Market International Diamond Conference in Mumbai (India), two European banks – ABN Amro and Antwerp Diamond Bank said they would not fund any trading activity on Zimbabwe diamonds because of European Union sanctions.

AAG Expectations On The KPCS November 2010 Plenary

The St Petersburg KPCS 2010 plenary confirmed that Zimbabwe had met all the KPCS minimum requirements as reported by the appointed monitor. In the main, the report states that the so called human rights abuses and violence in Marange is non-existent, that full KPCS security measures are in place and that the de-militarisation of the area has been completed.

With confidence, we can also confirm that diamond mining in Marange conforms to KPCS standards.

In view of the aforegoing, we expect the KPCS November 2010 plenary to;

1. Allow unconditional exports of Marange diamonds including the stockpile.

2. Restore Zimbabwe’s full export status just like any other Kimberley Process member country.

If the above is not achieved at this Plenary, AAG will push the Government of Zimbabwe to proceed with open sales of all diamonds including the stockpile. As we understand it, the country is not short of buyers who do not care about Kimberley Process certification.

AAG will encourage all mining companies to step up production so they can create more jobs and stimulate economic activity. It must be noted that the mining companies in Marange have made huge investments to produce diamonds for sale and not for stock piling.

In light of the above, it is important that this Kimberley Process Plenary acts responsibly and allow Zimbabwe unconditional diamond exports. This Jerusalem Plenary could deliver the death knell to the KPCS or strengthen its status. This Plenary can make or break the global diamond industry. Be on the right side of history and allow Zimbabwe its full rights over its natural resources.

The people of Zimbabwe cannot wait any longer.

Tafadzwa Musarara, Secretary General
Supa Collins Mandiwanzira, President
Affirmative Action Group (AAG)

2 November 2010, Jerusalem.

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