Zimbabwe Diamond Auction Raises Calls for Transparency

Wednesday’s auction of rough diamond from the Marange fields was expected to total $72 million. The auction of about 900,000 carats of rough diamonds garnered international attention and brought many, including Zimbabwean ministers, to call for transparency in the county’s diamond economy.

Zimbabwe is yet to reveal how much it was able to fetch in Wednesday’s auction, however Prime Minister Morgan Tsvangirai was quoted as saying that the goods are worth $72 million.

This may be a high figure for the goods, which translates to an average of $82 per carat. The country’s goods are estimated to be worth about half that, averaging $35-$50 p/c. Buyers from Israel, India, Lebanon and Russia came to take part in the auction.

Tsvangirai arrived at the Harare International Airport to take part in a ceremony that marked the sale, the first of two recently approved by the Kimberley Process. In his speech, Tsvangirai cautioned against overstating Zimbabwe's diamond wealth, VOA reported.

“Ladies and gentleman, it is the sense of cabinet that the proceeds from this sale should benefit the generality of Zimbabweans,” Tsvangirai said. “However, I must also caution that we have to be both transparent and realistic in terms of our expectations from the sale of our diamonds.”

Tsvangirai’s call for transparency was repeated by economists, lawmakers, regional politicians and others. The backdrop is not only an expectation to avoid mishandling of monies that should reach the government coffers, but also an expectation among the country’s citizens that the income will greatly elevate economic woes.

While the Kimberley Process approval and subsequent auction took place, a KP review mission was surveying the Marange diamond fields and the country’s diamond controls to asses if Zimbabwe meets KP’s minimum standards, something that will allow it to freely export its goods.