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'Diamonds can revive Zim economy'

by Staff Reporter
27 Nov 2013 at 13:42hrs | Views
Business leaders say revenue from diamonds can be used to kick start the country's economic revival through resuscitating the manufacturing sector and developing infrastructure.

Zimbabwe is experiencing a liquidity crunch which experts say might spill into the first quarter of 2014.

With the Bretton Woods institutions punitively refusing to extend a helping hand to Zimbabwe, local business leaders say the country can jump start its economic revival using revenue from diamonds.

Industrialist Callisto Jokonya said diamonds should be treated as a national asset, hence revenue from mines should be directed towards infrastructure development and the revitalisation of the manufacturing industry for the benefit of all Zimbabweans.

ZNCC immediate past president, Oswell Binha, said there is need for transparency in dealing with diamonds so that their true value can be realised.

According to analysts, Zimbabwe has not realised much from the trading of Marange diamonds.

Internationally, a 25 carat diamond is valued at US$4.5 million and Zimbabwe is believed to be holding on to one million carats which can fetch more on the market.

The lifting of sanctions on the ZMDC by the European Union should be considered as a boost since Zimbabwe is now able to get value for the gemstones.

Some economies such as Botswana's have been driven and sustained by diamonds.

Source - zbc