Monday, May 13, 2024

Smuggling

Aiding Poverty By Smuggling A Rare Black Stone For 30 Pieces Of Silver

For Claudious Murungweni (not his real name), a 35-year-old bus conductor plying the Zimbabwe-South Africa cross-border route, the corruption and smuggling of a low base mineral has turned around his economic fortunes.

From a paltry equivalent of US$90 dollars as a monthly salary, Murungweni now has a new avenue that is financing his livelihood running into thousands of US dollars.

Since October 2021 when the government relaxed the COVID-19 pandemic restrictions that enabled cross-border buses to carry passengers, Murungweni says he has been approached by “good guys with great deals.”

“I carry raw granite stone slabs cut from the main blocks. These black granite slabs are movable by bus so for that job we get ZAR25 000 rand (US$1 600). First transaction is just a fifty percent deposit that I use to pay (bribe) the police and revenue collection officials at the Beitbridge border post.

“When we get to South Africa that is when I am paid the balance,” says Murungweni.

For the trip, Murungweni shares the money with the bus driver, and also bribes Zimbabwe Revenue Authority (Zimra) officials at the Beitbridge border post and their South African counterparts.

Zimbabwe is a country richly endowed with useful diverse mineral resources. Despite this vast mineral resource base, more attention has been placed on highly valued minerals like gold and diamonds when people talk of smuggling.

The illicit financial flow in the mining sector according to the government through Home Affairs minister Kazembe Kazembe costs the state US$100 million each month in lost revenues, a total of US$1.2 billion annually.

The issue of illicit financial flows affecting Zimbabwe’s struggling economy has moved from highly precious minerals like gold to low minerals like the granite stone, now known as “the black gold.”

From where the granite stone is mined by the Chinese, in Mutoko, a rural area about 140 kilometers east of the capital Harare, villagers have little to show off the mineral mined in their area, except bearing the brunt of environmental damage.

Granite mining damages the environment
The mining of Granite in Mutoko has left a trail of environmental degradation. Mining companies have not come up with initiatives to protect the environment. Credit: Ubuntu Times

A 2019 investigation conducted by ZELA on the financial and social impact of black granite mining in Mutoko revealed that less than ten percent of Zimbabwe’s granite is cut and polished locally with the bulk of it being exported in its raw form as “granite merely cut into blocks.”

Because issues of smuggling are not treated with precision in courts, a close associate to the country’s President Emmerson Mnangagwa, Ms. Henrietta Rushwaya, was in October 2020 intercepted at the Robert Gabriel Mugabe International airport with six kilogrammes of gold worth an estimated US$366,000 in her handbag en-route to the United Arab Emirates.

She was arrested, spent days in prison and later released from custody in January 2021 on ZWL$100 000 bond. However,  her case is now collapsing after anti-corruption advocates hinted that the way her case is progressing has been engineered to collapse because of her close links to the Mnangagwa family.

“If I get arrested I will just know I am a small fish, and those heavily involved in smuggling are walking scot-free. That means our system has broken down and people can just do all they can to earn a living. I do not even ask where the granite stone is going,” adds Murungweni.

According to Shamiso Mtisi, the spokesperson of the Zimbabwe Environmental Lawyers Association (ZELA), from where the black granite is mined “environmental damage and lack of community benefits for the people of Mutoko” are key characteristics.

“We hear there are issues of the smuggling of the black granite stone from Zimbabwe specifically because of its fineness and being a great quality mineral. Unfortunately, there is a failure to have it benefit the communities from where it is mined.

“What is procedural is to have granite exported through formal procedures by going to the Minerals Marketing Cooperation of Zimbabwe (MMCZ), but the money that these mining companies pay as a mining levy is inadequate. Those levies deny the communities opportunities for development,” said Mtisi.

Export cumulative figures by the Zimbabwe Statistics Agency (Zimstat) revealed that in 2020 Mozambique, Zambia, South Africa, Italy, Switzerland, China, Greece and Spain are among the top export destinations of unbeneficiated granite.

The Black Gold, the new name for Granite stone
A heavy machine seen atop the huge Granite boulders mined in Mutoko. Credit: Ubuntu Times

Mutoko is not an exception regarding general environmental, economic and social challenges resulting from the mining of black granite.

To curb smuggling syndicates and plug illicit financial flows, the Zimra border controls say the upgrading of the Beitbridge Border post into a “world class” center is one that will help break the stranglehold of smuggling syndicates.

Zimra head of corporate communications Francis Chimanda says the authority is working to improve security to reduce instances of smuggling by improving the bus terminal that will see all travellers.

“The new bus terminal (at the border) will provide facilities where all buses will have their goods offloaded and checked before authority to proceed will be granted by revenue officers through scanning of gate passes to activate the opening of boom gates.

“This will go a long way in ensuring that the buses are checked and authority to proceed is granted. The upgrade will also generally improve security and reduce instances of smuggling at the Beitbridge border post as the new measure for traffic control and movement have improved the checks and balances,” Chimanda says.

Chimanda also pointed out that Zimra officials have embarked on random searches of buses to break the smuggling syndicates but they have not intercepted any with black granite stone.

“Currently random searches are being done on exit buses and to date, no interceptions have been made on granite being smuggled. Having said that any instances of possible smuggling will be thoroughly investigated” Chimanda adds.

Zimbabwe Miners Federation (ZMF) spokesperson Dosman Mangisi says as long as government and policymakers in Zimbabwe do not come up with a Minerals and Metals Beneficiation policy, the country’s minerals will continue to be smuggled out.

He says the value of beneficiation should be explained to the communities where the minerals are being mined in order to empower locals.

“Basically we are lagging behind as a country because Zimbabwe has no legal and policy instruments that enable value addition of our minerals. We have no metal beneficiation laws.

“Our principals should come with beneficiation policy frameworks that govern this. The ones we have speak of mining on a touch-here-touch-there basis,” Mangisi says.

For example, sample surveys conducted by the ZMF since 2016 have concluded that Zimbabwe is sitting on US$30 billion worth of iron ore but the country is currently importing 70 percent of its iron requirements.

“For this country to unlock value, granite beneficiation should be done at community level through a formulated Minerals and Metals Beneficiation policy. These minerals should therefore be classified so that we know their uses and value.

“As long as we do not have beneficiation policies we will never know the value of what we have,” adds Mangisi.

He also urged the government to start beneficiation awareness campaigns at community level so that locals know what value their minerals have.

Zimbabwean Government Urged To Stop Hemorrhaging Gold And Other Minerals

Centre for Natural Resource Governance (CNRG), a Zimbabwe-based NGO advocating for violence-free and conflict-free extraction of natural resources now wants the government to halt the scourge.

“We are gravely concerned on syndicates who abuse their proximity to power and defraud Zimbabweans and the central government of funds that should be expanding the country’s revenue base and improving the socio-economic lives of Zimbabweans,” says Simiso Mlevu, a project and communication for development chief at CNRG.

On May 9, South Africa’s Hawks Serious Organized Crime Investigation team arrested Tashinga Nyasha Masinire at OR Tambo International Airport on charges of illegally possessing 23 pieces of gold valued at $700,000.

The gold was discovered in Masinire’s luggage and he failed to produce a permit that allows him to transport the gold.

According to Mlevu, the arrest of Masinire by South African authorities raises questions about the porosity of Zimbabwe’s ports.

“The smooth departure of Masinire with his loot exposes the complicity of Zimbabwe’s immigration and security authorities in the smuggling of the country’s minerals,” she told Ubuntu Times in an email interview.

The arrest of Masinire follows another high-profile arrest of Zimbabwe Miners Federation President, Ms. Henrietta Rushwaya in October 2020, who was found with contraband of 6kg of gold. Rushwaya is yet to be cleared by the courts and remains the President of the Zimbabwe Miners Federation.

The NGO further calls the Zimbabwe Anti-Corruption Commission to investigate the role of the Zimbabwe Miners Federation and politically connected cartels in the smuggling of minerals.

It further wants the judiciary to consider smuggling of minerals as a high-level crime and impose deterrent sentences on members of criminal networks involved in smuggling of minerals

Zimbabwe continues to lose billions of dollars annually to organized criminal syndicates which have spread their wings from diamonds, chrome, gold, semi-precious gemstones, coal to copper, among other minerals.

With the majority of Zimbabwean working population majorly found in the informal sector, many of those living in mineral-rich areas risk their lives digging underground in search of gold to better their lives.

Research by International Crisis Group estimated that over $1.5billion of gold is smuggled out of Zimbabwe each year, denying the cash-strapped economy of crucial foreign-exchange revenues.

The Central bank-owned Fidelity Printers and Refiners (FPR) is the sole legal buyer of extracted gold in Zimbabwe and is also the country’s notes and coins minter.

This, analysts say, could be a major factor for smuggling of gold because of the poor prices offered by FPR to the sellers.

Late last year, as one of the efforts to curb this, announced that it would close down all unmonitored airstrips, install a new radar control system to monitor small aircrafts flying in the country with a belief that they might be used to smuggle minerals out of the country.

An ‘Illegal’ Economy Fortified With Blessings Of Ruling Elite

On April 18, Zimbabwe celebrated its 41st independence anniversary from British colonial rule amid a presidential promise that the country’s mining sector will contribute US$12 billion dollars in revenue by 2023.

The country’s over sixty mineral resources ranging from diamonds, platinum and gold remain under-explored. According to the country’s minister of Mines and Mining Development Mr. Winston Chitando, “Zimbabwe does not know the estimated value of its mineral wealth.”

Despite the huge wealth in mineral deposits, the lives of many Zimbabweans have not improved. In his independence speech, Zimbabwe’s President Emmerson Mnangagwa reiterated his government’s plan to have the mining sector contribute hugely to the economy and improve the lives of citizens. By 2030, Zimbabwe seeks to achieve an upper-middle-income economic status.

“The mining industry is projected to rebound by eleven percent this year. Guided by the strategy to achieve a US$12 billion industry by 2023, programs that include increased exploration, expansion of existing mining projects, resuscitation of closed mines, opening of new mines, mineral beneficiation and value addition are being prioritized,” said President Mnangagwa in his independence speech.

Zimbabwe's leader since November 2017
Zimbabwe’s President Mnangagwa addresses the nation in his Independence Day speech revealing that the country’s mining sector will be a US$12 billion dollar industry by 2023 despite Zimbabwe losing over one billion dollars through gold smuggling and illegal trade of the mineral. Credit: Gibson Nyikadzino / Ubuntu Times

Zimbabwe’s goldfields and other mineral fields are today a contested terrain where even the elite and state institutions including the country’s Defence Forces are scrambling for a slice of the cake. In 2008, Mr. Farai Maguwu, the director of Center for Natural Resource Governance was arrested for bringing to attention the abuses committed by Zimbabwe’s security forces in the Marange diamond fields.

The gold sector has not been spared. According to a 2020 report by the International Crisis Group (ICG) gold buyers linked to President Mnangagwa buy the precious mineral on a premium, deterring the gold panners from selling the gold to Fidelity Printers and Refiners, the sole authorized gold buyer.

Resources Plunder By An Intemperate, Predatory Elite

After his dismissal then as Vice President in November 2017, Mnangagwa was accused of amassing wealth by grabbing mines belonging to small-scale miners. “Mnangagwa also grabbed many mines which belong to small-scale miners. He was abusing his authority as the Vice President to grab whatever he wants. We say Mnangagwa must be arrested because he is corrupt, he must face the music,” said then party official Mr. Dickson Mafios at a rally.

In 2018 former Higher Education Minister in Zimbabwe Prof. Jonathan Moyo also revealed that President Mnangagwa’s activities and those of his close circle are despicable that even the United Nations (UN) had to publish a report about their activities in the Democratic Republic of Congo’s (DRC) second civil war.

“The person who led the plunder of resources in the DRC leading to the United Nations (UN) investigating and coming with a report that is still there is Emmerson Mnangagwa along with the military cabal of General Chiwenga and SB Moyo. The person who brought the Chinese to plunder Chiadzwa Diamond Fields up to a point to which we had at the very least from 2007 to 2014 some US$12 to US$15 billion in diamond revenue that remain unaccounted for that went into the pockets of individuals is Mnangagwa,” Prof. Moyo said.

The report titled Plundering of DR Congo Natural Resources: Final Report of the Panel of Experts (S/2002/1146) was published in October 2002.

Chief beneficiary
President Mnangagwa’s name has been implicated in a scandal of six kilograms of gold that were recovered by the police destined for Dubai, allegedly involving his wife Auxillia, son Collins and close relative Ms. Henrietta Rushwaya. Credit: Gibson Nyikadzino / Ubuntu Times

Today President Mnangagwa and his family’s name continue to ring in illegal gold deals. Illegal gold mining or artisanal small-scale mining in Zimbabwe has been a launchpad for many illicit financial flows and gold smuggling out of the country. Home Affairs minister Mr. Kazembe Kazembe in February this year admitted that smuggling and illegal gold deals are costing the country between US$1.2 billion to US$1.5 billion dollars annually.

In October last year, Zimbabwe Miners Federation (ZMF) president Ms. Henrietta Rushwaya, a “close Mnangagwa relative” implicated Mnangagwa’s wife Auxillia and their son Collins after she was arrested at the Robert Gabriel Mugabe International Airport attempting to smuggle six kilograms of gold worth over US$360,000 to Dubai.

The First Lady distanced herself from Ms. Rushwaya’s arrest. “I have no dealings nor involvement with Ms. Rushwaya of any illegal kind,” she said. The gold sector in Zimbabwe has become a vital cog in foreign currency earning with many entrants using President Mnangagwa’s name to make inroads.

A US$12 Billion Election Campaign Promise For 2023?

Mr. Maguwu doubts the sincerity of the Mnangagwa administration in reaching the US$12 billion mining sector contribution to the economy by 2023. He further notes “Zimbabwe has far surpassed that mark.” Late Zimbabwe’s president Robert Mugabe in 2015 claimed the country had not received much from its diamond industry and lost about US$15 billion in the sector.

“We have not received much from the diamond industry at all. Not much by the way of earnings. I don’t think we have exceeded US$2 billion or so and yet we think that well over US$15 billion dollars have been earned in that area,” President Mugabe claimed then.

Zimbabwe is scheduled for general elections in 2023 and according to Mr. Maguwu, the government initiative in the mining sector is a campaign tool similar to the 2013 elections.

In 2010, Zimbabwe had an Employee and Community Share Ownership Scheme (ECSOS) in which foreign-owned companies were expected to cede some of their investments towards employee and community empowerment. After the 2013 elections, the scheme has been dumped.

“To me, it sounds like a political statement targeting the 2023 election, similar to the 2010 community share ownership scheme that was going to empower communities, and it led to the 2013 elections. After that election the whole thing died a natural death, now they are talking about a US$12 billion dollar economy by 2023, which is another election year. There is no feasibility study as to what is wrong with our mining sector. You cannot fix what you do not know. So there is no research carried out to say what is wrong and how do we correct it.”

“This government is silent on mining corruption. They are not talking about it and that is where the money is. It is not about making big statements and making promises to the nation,” Mr. Maguwu said.

Meeting target
Mines Minister Mr. Chitando dismissed critics for insinuating the US$12 billion dollar mining industry sector target by 2023 is a political campaign strategy. In his admission, he said Zimbabwe does not know the cumulative value of its mineral wealth. Credit: Gibson Nyikadzino / Ubuntu Times

Minister Chitando dismissed Mr. Maguwu’s assertion. He says the expected US$12 billion dollar contribution by the mining sector will be revenue streamed into the national fiscas.

“The US$12 billion dollars is the revenue that will be coming to the fiscas from the mining sector. There are projects happening now in the platinum sector, we have three new projects taking place. We have expansion projects taking place and all projects are taking place in reality. The fact that we took a five-year window is because that is the target we are working on,” explained Minister Chitando.

Uphold Rule Of Law To Plug Leakages, Illegality

Mr. Wellington Takavarasha, the chief executive officer of the Zimbabwe Miners Federation (ZMF), an organization owned by President Mnangagwa’s close relative Ms. Rushwaya, highlighted that artisanal small-scale miners contribution to the US$12 billion contribution is dwindling as some miners are being arrested.

Between 2017 and 2020, artisanal small-scale miners contributed a total of sixty tonnes of gold to the sanctioned government buyer, Fidelity Printers and Refiners. Because of arrests of the artisanal small-scale miners, gold output has declined from 60 percent to 47 percent. In 2019, small-scale miners contributed 17 tonnes as opposed to 9.8 tonnes in 2020.

“This year’s first quarter, our output has declined but we have the potential to contribute to the US$12 billion target. Our strategies include having our ventures formalized, mechanized, and have government resuscitate the mining industry loan fund,” said Mr. Takavarasha.

ZMF estimates that a tonne of gold is traded illicitly outside the formal market, which is fuelled by more than 1.3 million unregistered artisanal small-scale miners against its membership of 40,000.

Zimbabwe’s Gold Trade Act prohibits people without licenses to trade in the precious material. “Illegal mining is a livelihood activity that needs to be formalized. As it is, government is not benefiting but the middlemen and police are benefiting,” added Mr. Takavarasha.

Illegal gold dealings and smuggling is no new phenomenon in Zimbabwe. Successive ministers have raised the issue but their principals have turned a blind eye to their calls. Economist Mr. Nyasha Muchichwa says for government to stop the leakages, it needs to “uphold the rule of law and offer a competitive price to stop arbitrage.”

Government sanctioned buyer Fidelity Printers and Refiners is currently buying gold at US$45 per gram while on the illegal market it is US$54 per gram.

“The fact that we can quantify the money we are losing means we know that it is happening and when it has happened. The law should take its course and to those caught on the wrong side to be used as an example on what not to do.”

“When paying for those mining or selling gold, let us pay competitive rates so there is no arbitrage. As long as we have different prices this is when you find people making other means to get more money from the mineral they are holding. We need to address the price, laws that govern the selling, and the issue of our porous borders,” said Mr. Muchichwa.

China’s Appetite For Furniture Depletes Africa’s Rosewood Trees

Dar es Salaam, Tanzania — China’s insatiable appetite for rosewood tree species is still driving illegal deforestation in Tanzania and elsewhere in Africa, killing forests and sowing civil strife, Ubuntu Times can establish.

A surge in illegal logging is devastating native forests across the east African country, despite efforts by local authorities to prevent the forest losses.

Hundreds of tonnes of endangered Rosewood trees are being cut and smuggled out of Africa each month by timber dealers to feed a lucrative Chinese construction and furniture market, local forest groups said.

Armed Loggers

Armed loggers, usually invade forests at night, targeting, indigenous trees notably rosewood, which is on the verge of extinction due to rising demand, and ferry them in wooden dhows in the Indian Ocean across Mafia island ready to be exported.

Rosewood known locally as Mpodo is a target for a bustling illegal logging trade in east and western Africa due to a lucrative market in China and elsewhere in Asia.

With China’s local rosewood rapidly waning, illegal loggers and traders have increasingly looked towards forests in Tanzania and elsewhere in Africa to feed the $15 billion rosewood furniture market.

Illegal logging
A carpenter stands at a finished dhow made of rosewood tree. Credit: Kizito Makoye / Ubuntu Times

Charles Meshack, Executive Director of Forests Conservation Group—a national NGO dedicated to conserving the country’s high biodiversity forests said China’s rising demand for wood is endangering these forests and strain the lives of local Tanzanian communities dependent on the wood for a livelihood.

“We are quite certain illegal harvesting of rare forest species including rosewood persists, and urge the government to take stern measures to stop this trend,” said Meshack. 

Lack Of Enforcement Fuels Illegal Harvesting

Although the east African country has an export ban on certain tree species including rosewood in place observers said lax enforcement has allowed illegal harvesting and export to continue unabated.

Across Africa, transnational syndicates are flouting local bans to exploit the remaining valuable rosewood.    

Rosewood forests deliver critical climate and livelihood benefits to communities across Africa, reduce water stress, and support sensitive ecosystems.

Local analysts say the ongoing trade in those wood species greatly undermines the communities’ ability to adapt to climate change let alone fuelling local conflicts.

Tanzania has 33 million hectares of forests and woodland, but the country has been losing more than 400,000 hectares of forests a year, according to the United Nations Food and Agriculture Organization.

The east African country’s dense forests found primarily in the southern part of the country are increasingly threatened by logging, agriculture and fire.

Livelihoods At Risk

Although many people in southern Tanzania rely on rosewood as a source of fuel and medicine, corruption and poor governance of forestry resources are allowing loggers to flout the export bans.

“We don’t seem to have adequate regulatory framework in place to deter criminals who are endangering rare forest species,” said Juma Mlingi, a local farmer in Rufiji valley adding that China’s appetite for rosewood is not only bad but also severely impacting the lives and livelihoods of his communities.

Dos Santos Silayo, Chief Executive Officer Tanzania Forests Services Agency (TFS) said the government is determined to deter illegal logging of rosewood and already remedial measures have been taken to conserve and manage forests sustainably.

Classic Furniture

First crafted in China as far back as 1,000 BC, rosewood furniture, or hongmu as it’s popularly known, has been fashioned into imperial-era styled furniture pieces.

As one of the world’s largest consumers of rosewood, the rising demand for wood in China is having a serious impact for endangered forests.

According to a 2018 report published by Forest Trends—a Washington-based non-profit organization with a mission to conserve forests and other ecosystems, rosewood imports into China increased substantially in the past two decades and were worth approximately $2.6 billion between 2013 and 2014.

Rosewood has rapidly become a hot cake in China, where the dark red and oily-textured species, used primarily for making classical Chinese Furniture and décor, attracts new wealth.

According to the report, the surging demand for rosewood has driven massive amounts of illegal deforestation, contributing to smuggling, fraud, corruption and ethnic strife in most African countries.

In 2016, nations meeting at the 17th Conference of Parties (COP) of CITIES, significantly expanded protections for rosewood species and hundreds of other tree species targeted by illegal loggers and traders.

Trade in valuable hardwood species, including rosewood—largely to satisfy demand for classical-style furniture in China—poses an increasing threat to tropical forests.

“Rosewood logging is illegal in Tanzania, but the situation on the ground is proving otherwise since dishonest traders still go after those endangered species,” said Mlingi. 

From 2010 to 2014, China’s rosewood imports from Africa jumped 700 percent, and in the first half of 2016 alone, nearly US$216 million worth of West African rosewood was imported into China.

Tanzania Military Expels Smugglers From Gemstone Mine

Dar es Salaam, Tanzania — As a newly-wed couple who visited Tiffany and Co Store in New York can attest, the finely crafted wedding rings fitted with velvet blue crystals, capture the allure of Tanzanite—one of the world’s most sought-after gemstones 1000 times rarer than diamond.

What is not so obvious to the revelers, though, is that the dazzlingly glittering stone only found in Tanzania is oftentimes a product of smuggling.

Lucrative Business

Despite being a lucrative business, the global Tanzanite trade has not been giving optimal benefits to Tanzania, the only place on earth where the precious stones are found.

Although the east African country is endowed with huge mineral resources notably Tanzanite gemstones, the local industry for cutting had not developed as fast, as a result, a huge amount of precious minerals is shipped by unscrupulous traders to the far East for processing and value addition.

Tanzanite Discovery

Discovered in 1967 by Meru herdsman, Jumanne Ngoma, who stumbled upon glittering crystals while herding cattle on the foot of Mount Kilimanjaro, Tanzanite, prized between $600-$800 per carat, is arguably the best money can buy.

Tanzanite smuggling
A perimeter wall built by Tanzania military has helped in preventing Tanzanite smuggling and increasing government revenue. Credit: Edwin Mujwahuzi

At a dusty township nestled on Mererani Hills in Tanzania’s northern Manyara region—dotted with wooden shacks, artisanal miners scale down squeaking wooden ladders, into shafts and crawl through narrow passages into underground caves to find their luck.

Driven by survival instinct, the diggers, better known as “Wana Apolo” explore every possible means day and night to find their luck, even though they know much of what they get won’t benefit their families.

“I am working here as an employer, there’s no chance at all I will wake up one day to be rich, whatever we get goes to our boss,” said Halfan Hemed, a miner at Mererani. 

According to him, much of the resources are being stolen by foreigners.

Plugging The Loopholes

In an effort to curb Tanzanite smuggling, former Tanzania president, John Magufuli, in 2017 ordered the military to build a 24km perimeter wall surrounding Tanzanite mining site in the northern Simanjiro district to control theft of the precious gemstone thus preventing loss of government revenues.

Fitted with surveillance cameras and barbed wires, the 20 feet high wall has reportedly helped in the monitoring of suspicious activities in the mining site thus preventing smuggling of the gems.

Million Dollars Loss

The east African country has repeatedly lost millions of dollars due to Tanzanite smuggling.

The government had thus established new regulations to ensure high security and effective management of mining activities in and around the mining site.

The mustard yellow wall, worth $2.9 million, has only one entrance, which is secured by the army.

Before its construction, officials said about 40 percent of all Tanzanite produced in Tanzania was being smuggled out of the country.

Recent government data show that gemstones worth Tzs 635 (US$288.6 million) were being smuggled out of the country every year through illegal routes and the consignment ended up in Kenya, India, and other destinations in the far east.

For instance, records show that Kenya, was is exporting abroad Tanzanite worth $100 million while India pocketed $300 million worth of Tanzanite sales, surprisingly official export figures in Tanzania before construction of the wall clocked at US $38 million per year.

Parliamentary Enquiry

The move to build the wall followed a parliamentary inquiry in 2017, which revealed massive smuggling of the blue-violet gemstone of which mining operators were the ones reaping the benefits of the country’s tanzanite riches due to corruption and bad contracts.

The government move to control mining activities at the Tanzanite site has helped in assuring buyers especially in the United States that the gemstones are legitimate and all relevant taxes and royalties are being paid.

Officials said the government has created infrastructure for the wholesale gemstone industry in the country where gem cutters, carvers, and jewelers compete with others abroad.

Military Might

Speaking at the burial ceremony of the late Magufuli, Chief of Tanzania Defence Forces, General Venance Mabeyo, said the military has been fully involved in the protection of the country’s minerals wealth especially the construction of the wall.

“We wanted to protect the tanzanite mine, and before doing that we have built the wall surrounding it to prevent smuggling,” Mabeyo said.

Since 2016, the east African country overhauled the legal, regulatory and fiscal framework governing the mining sector ostensibly to seal off loopholes for theft and loss of government revenues.

Dotto Biteko, Minister for minerals said the country has seen an increase in government revenues from sales of Tanzanite and other minerals due to coordinated response such as tightened security at airports and border points through which the gemstones and other precious minerals were being smuggled.

“We are better off, far better off than when the situation was six years ago,” he said,

Magufuli strongly criticized foreign mining companies, accusing them of undervaluing their production of gold, diamonds, and tanzanite, resulting in a loss of billions of dollars in taxes and royalties.

A commission of inquiry set up by Magufuli estimated that $90bn had been lost in tax evasion arising from mining operations since 1998.

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Zimbabwe’s President posing for a photo with his guests.

IMF And World Bank: The ‘Bad Samaritans’ And Neoliberals Cheating Africa Into A Cycle...

8 months ago
The Western liberal consensus has long been intervening and interfering in Africa. The first form of intervention was through the slave trade from the...
A picture of the leading presidential candidates at the just concluded Nigerian 2023 polls

2023 Elections: A Street Robbery

11 months ago
If you can relate with the kind of mood you'd meet when on a visit to a street that had just experienced a robbery...