AWDC CEO Says Antwerp is Strong Partner for Sustainable Growth in Zim
March 13, 14
(IDEX Online News) – Ari Epstein, CEO of the Antwerp World Diamond Centre (AWDC) has told the ZimAsset Awareness Seminar, a Parliamentary Hearing on the future economic development of Zimbabwe, that Antwerp is a committed partner for ensuring the sustainable development growth of Zimbabwe’s diamond industry.
Ari Epstein
Invited to speak by the Zimbabwe parliament, Epstein said in Harare that the recent diamond tenders of Marange goods in Antwerp demonstrated how Zimbabwe can generate tens of millions US dollars in additional revenues by tendering rough diamonds in Antwerp.
He also highlighted how, by acting in line with the EU objectives of long-term inclusive economic development after the lifting of the EU sanctions that prohibited trade of Marange diamonds in Belgium, Antwerp has kept its promises to Zimbabwe. Following the lifting of sanctions last September, Antwerp vouched that it could guarantee higher and transparent revenues for the Zimbabwean government through the marketing of Marange diamonds in the center.
He said that tenders of rough diamonds in Antwerp have generated prices 30 percent above the producing companies’ expectations and 50 percent- 60 percent higher than prices fetched in Zimbabwe and other diamond centers.
He also revealed that for the first time in four years, a transparent and appropriate return on investment for the government has been achieved. Prior to trading in Antwerp, Marange goods were sold in Zimbabwe, but also in other diamond centers, at an average price of $47 per carat, resulting in an average return on investment for the Zimbabwean treasury of $7.05 per carat.
In contrast goods are sold in Antwerp for an average price of $80 per carat or $12 per carat in royalties for the Treasury. If all sales were to go through Antwerp, Zimbabwe would gain more than $400 million in extra revenues, resulting in an increase of $60 million of royalties per year.
Epstein emphasized that the AWDC is ready to increase its commitment to Zimbabwe. “We have created a break-through by opening up the market for Marange goods and creating real added value in a fully transparent manner. We are now willing and able to help Zimbabwe to develop further, by sharing our expertise and knowledge on how the country can yield more benefits from its resources,” he said.
The AWDC presented a draft Memorandum of Understanding to the government in order to embark on a joint long-term relationship where technical assistance, knowledge transfer and common value creation are key.
However, Epstein cautioned that beneficiation requires the development of local skills and infrastructure as well as strong and long-term commitments, “We want to help build dreams, but we are not here to build a fantasy that is bound to fail. We are in it for the long run and that means taking a step-by-step approach,” he said.