Diamonds: African companies want their fair share

Every issue has it’s season, and usually results in an oscar nomination. But what happens after all the fan fare? The conflict and the issue is forgotten.

It’s been several years since the release of widely acclaimed film Blood Diamonds and responsible consumerism was a hot topic for a season. Now, Sierra Leone’s civil war is over and the Kimberly Process has started regulating diamond trade more closely. But there is a more subversive crime is still being committed against Africans_inequity in business. Will international mining industry giants secede their power and  give a fair share back to local African businesses? 

“We don’t have a figure because you’ve got lots of African countries that don’t actually produce; instead, all they do is act as a conduit”, said Abbey Chikane, Chairman of the South African Diamond Board and the Kimberley Process in an interview with allAfrica.com’s Charles Cobb Jr.

While a post-conflict region is reestablishing a government, exploitation by businesses were a common concern of both European and African leaders and human rights groups. The European Commission and African leaders discussed matters of peace and security in post-conflict regions at the Joint Summit in Lisbon in 2007.  According to reliefweb.org, they determined that “issues relating to transnational organised crime, international terrorism, mercenary activities, and human and drugs trafficking, as well as the illicit trade in natural resources, which are a major factor in triggering and spreading conflicts and undermining state structures, are of particular concern.”

Global Witness released a report, For a Few Dollars More, How Al-Qaeda moved into the diamond trade, claiming that the Al-Qaeda network successfully infiltrated diamond-trading networks in Africa to raise funds for its operatives and launder money. Author of Blood Diamonds, Greg Campbell had also investigated the link between the Al-Qaeda terrorists who committed the 9-11 attacks on the United States and conflict diamonds in Sierra Leone.

Yet, support of the African Union in  the Kimberly Process and the The Clean Diamond Act is still shaky at best. 

 “Burkina Faso and Congo Brazzaville, for instance. They don’t produce diamonds but they export large quantities of diamonds. So in terms of numbers it is very difficult. If you ask me how many diamond-producing countries there are, I will tell you South Africa, Botswana, Namibia, Angola, the DRC – there are very few. The rest, like Zambia, Zimbabwe, all these, don’t actually produce diamonds but they trade; they source their diamonds from elsewhere. That will have to be a subject of discussion at our next plenary: Where do they source their diamonds from because they don’t produce?” Said Chikane.

Even if proper regulation of diamond trade is established, Western diamond industries are showing reluctance to share their profits with African partners.

According to AllAfrica.com, Botswana is boasting over recent ownership of diamond mines and the mining “conflict free diamonds”. Yet, reports of “a messy dispute regarding AK 6 diamond project earlier this year”  revealed that African Diamonds will hold only 28 percent share in the AK06 Discovery project while De Beers has 71 percent.  

DeBeers is blaming the dispute on their joint partner, Boteti. The DeBeers.com website indicated that “African Diamonds apparently believes that Boteti should breach its contracts with De Beers by breaking its marketing agreement entered into at the formation of the joint venture…African Diamonds has commenced legal proceedings against Boteti and its fellow shareholders in Boteti (Debot, Debwat)”.

DeBeers claims that they had nothing to do with this dispute, yet, the AK6 project would greatly affect the quality of life in citizens of Botswana. According to DeBeers website, there would be a  “substantial 30% reduction in supply of power by Eskom to Botswana over the next three to four years…projections show that the shortfall in power supply is not expected to be resolved before the middle of 2012, at the earliest.” This is something that DeBeers has not found a way to resolve.

Does this mean consumers should boycott the diamond industry?Not necessarily.  The diamond industry can provide jobs and generate revenue for working African families. The most important point is to support only companies that are sharing an equal portion of the revenue with their African partners.

There are many human rights groups determined to force the diamond industry to find ways to incorporate sustainable business solutions to enable African business partners and communities surrounding diamond mines to flourish not suffer. Fatal Transactions is one such group.

“The commission repeatedly voices its concern on natural resources, conflict sensitivity, unsustainable natural resources management and underdevelopment” . Fatal Transactions insisted on accountability and third party evaluation of natural resource management procedures.

According to a documentary cataloguing his life, Campbell feels boycotting diamonds is the wrong approach. He pointed out that there is would have a negative impact on peaceful nations producing diamonds such as Botswana.  There are many problems with the certification process. He does, however, point out the glaring holes in the current certification process. For example, while diamonds from Sierra Leone had been essentially banned from the legitimate market, diamond exporting from non-diamond producing nations such as The Gambia dramatically rose during the civil.

The best way to make educated decisions about diamond buying is to read the confidence pact on the diamondsfact.org which is affiliated with The Kimberly Process Corporation. These diamonds are certified and are carefully documented by Kimberly Process Corporation employees. The Kimberly Process cannot certify individual jewelers, but you can encourage your jeweler to go online and register for educational information on conflict-free diamonds.

Sources:                                                                                                                                                                          www.debeersgroup.com                                                                                                                                                                       kimberlyprocess.com                                                                                                                                                        www.diamonfacts.org           www.AllAfrica.com                                                                                                                                                                                                                   www.AfricaBusiness.net                                                                                                                                                                                                      The Last Empire: DeBeers, Diamonds, and the World, by Stefan Kanfer                                                                                                Blood Diamonds: Tracing the Deadly Path of the World’s Most Precious Stones, Greg Campbell

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One Response to “Diamonds: African companies want their fair share”

  1. apeaceofconflict Says:

    Great post!
    The trade into neighbouring regions is bringing many conflict resources into our consumer products and the structures are not maintained and regulated perfectly. Profits should be shared among the line.
    It goes beyong just diamonds, which many often don’t realise and also includes gold, and the metals in our electronic equipment such as tin, copper, cobalt, coltan, tantalite and zinc (among others). There is no structure to ensure these other raw materials aren’t getting into our computers, laptops, cellphones, cameras, game systems… and they are. People need to start asking whether their products have helped to commit to human rights abuses and demanding some sort of legislation to ensure that there isn’t.

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