Twice the Ministry of Mines and Mining Development barred a fact finding parliamentary team from
touring the Chiadzwa diamond fields in Marange. Meanwhile the battle for diamond mining rights at
Chiadzwa between government and ZMDC on one hand and African Consolidated Resources (ACR)
on the other continued unresolved. ACR approached the High Court seeking an interim order interdicting
the Minerals Marketing Corporation of Zimbabwe, ZMDC and the two companies from selling the
precious stones from Chiadzwa. The Minister of Finance, in his mid-term budget review, suggested
an out of court settlement with ACR. This is yet to be done.
A Kimberly Process Certification Scheme (KPCS) meeting to consider Chikane’s recommendation to
readmit Zimbabwe ended inconclusively19. The mere arrest of activist Maguwu is argument against
clearing Zimbabwe diamonds as conflict-free. The Minister of Mines has been misleading the nation
on the country’s KPM status, with news reports at one time suggesting that he had told the cabinet
that Zimbabwe had been granted clearance to sell its diamonds. This turned out to be untrue.
Economic Stabilisation and Growth: Even though government revenue collection exceeded its targets,
gross revenues remain very small and incapable of adequately meeting expenditure requirements.
This is seen by the fact that still 61% of the revenue goes to the wage bill. This is despite the fact that
civil servants wages remain pathetically low. This is worsened by the bloated cabinet, a political
necessity for the fragile inclusive government. The government has so far not been able to invest
sufficiently in infrastructural and social development. The finance ministry reports that 82,9% of
revenue is going towards recurrent expenditure. Projections of Zimbabwe’s Economic Growth have
been revised downwards by both the Government and the IMF. Local industries are also experiencing
shorter working ours due to the incessant power cuts as well as water shortages. Captains of industry
and commerce have expressed concern over delays in the implementation of the Medium Term Plan
(MTP) which is expected to provide a platform towards consolidating economic gains20.
Consumer price inflation Monthly % change: As the first half of 2010 came to an end, the inflation
outlook was depressing. This is due partly to low levels of productivity in the economy. Staring at a
Source: ZIMSTAT (CSO)
KPCS decisions are made by way of consensus. After lengthy negotiations a compromise deal was struck where Zimbabwe was to export a limited amount for
19
diamonds in a limited period of time under strict KPM supervision. Chikane was to be replaced by a committee of monitors.
Zimbabwe Broadcasting Corporation (ZBC) 30 July 2010 see www.zbc.co.zw/.../2089-industry-concerned-over-mtp-delay.html
20
CIVIL SOCIETY MONITORING MECHANISM (CISOMM)
SIX MONTH SHADOW REPORT ON THE PERFORMANCE OF THE INCLUSIVE OF ZIMBABWE
16
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