Restructuring of the Diamond Industry in Zimbabwe: A Giant Leap for Africa

Posted: 23 Nov 2016

See all articles by Marshal Mapondera

Marshal Mapondera

Mutamangira and Associates - Clairwood Chambers

Date Written: November 21, 2016

Abstract

Brief discussion on the current major restructuring exercise in Zimbabwe's diamond sector, by government from a business and legal perspective. Policy evaluation reviews the regulatory regime of a typical resource economy in Sub-Saharan Africa and its epic battle against the "resource curse" (inexhaustible resource base yet with minimal national economic benefit). Diamonds like any natural resource are finite, despite their high value; emerging economies must create policies that ensure sustainability beyond the life of the resource. Zimbabwe's proposed consolidation of diamond companies must explore the business case of the transaction for the mutual benefit of government, as regulator/owner of the resource and the foreign investor, whilst avoiding expropriation. Regulation must allow room for security of tenure, less red tape, favourable fiscal regime and exploration. Zimbabwe's diamond industry has great potential, if managed with international best standards and within the rule of law.

Keywords: mining, mining law and policy, diamonds, regulation, investment, tenure, consolidation, amalgamation, business case, business transaction, expropriation, resource curse, economic potential, Kimberley Process, Sub-Saharan Africa, Africa Mining Vision, exploration, exploitation, rule of law, natural r

Suggested Citation

Mapondera, Marshal, Restructuring of the Diamond Industry in Zimbabwe: A Giant Leap for Africa (November 21, 2016). Available at SSRN: https://ssrn.com/abstract=2873386

Marshal Mapondera (Contact Author)

Mutamangira and Associates - Clairwood Chambers ( email )

38 Clairwood Road
Alexandra Park
HARARE, HARARE 263
Zimbabwe
+2634783015 (Phone)

HOME PAGE: http://www.mutamangira.com

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