Miners dig for diamonds in eastern Zimbabwe, where the government is trying to get locals to leave.
Miners dig for diamonds in eastern Zimbabwe, where the government is trying to get locals to leave.

African villagers pushed aside for diamonds



CHIADZWA, Zimbabwe // Villagers in an arid corner of Zimabawe are resisting government efforts to relocate hundreds of families from their ancestral homeland to make way for a diamond mine. "We do not want to leave and they [the government] know that," said Filda Tarindwwwwa, head of Zengeni village, in the Chiadzwa communal area. "Our ancestors are buried here, among the diamond fields. We will die here and be buried in the diamond fields. We belong here and we identify culturally with this area."

Chiadzwa, 300km east of Harare, was the scene of extensive free-for-all illegal diamond mining after the discovery of the precious mineral in May 2006. The government drove panners out in August this year. Proper mining started last month. Two mining firms, Mbada Diamond Mining and Canadile Miners, have partnered with Zimbabwe Mining Development Corp (ZMDC), a government parastatal organisation, to exploit the mineral.

As organised mining starts, 1,800 households have to be moved from the 70,000 hectares Chiadzwa claims to Arda-Transau, 100km to the west, to ensure the diamond fields are safe from intruders. In their first two months on site, the investors poured in US$150 million (Dh550m) in enhancing security, building an airstrip, houses, roads and securing electricity and machinery. Sales of the mineral had been expected to start before the end of this year, Mbada said.

But villagers are refusing to leave. They demand employment or a portion of the diamond fields to mine. Witness Kusena, of Kusena village, whose home is within the diamond claims, said the discovery of diamonds has been a curse for the community. "We want to benefit through mining because the diamonds are ours. But it must be known that this is a very arid area and droughts are the order of the day. Over the years of perpetual droughts, they never saw it fit to give us land to farm such as what they are promising us at Arda-Transau. We have diamonds now and suddenly they have found such a prime farming area for us."

Arda-Transau offers 12,000 hectares of farmland. The government and its partners are building five-room houses. Each will have half a hectare of irrigable land and half a hectare for dry-land farming. Schools, clinics, roads and other infrastructure will also be constructed in the $10m project. Murisi Zwizwai, the deputy minister of mines and mining development, told the official Herald newspaper recently that relocation may take place after villagers have harvested their crops in April.

Touring Chiadzwa last month, Joel Gabuza, the minister of state enterprises and parastatals, said a week of production at the minefield can support the country's civil service's annual wage bill of $600m. In March, before the new investors came on board, the ZMDC was extracting between 50,000 and 60,000 carats per week at Chiadzwa. Recent reports say production has now trebled as proper machinery and technology are being used.

"The carats that are being extracted per week add up to a substantial amount. But with the equipment we saw, this will certainly increase. This shows that our diamonds could solve our fiscal problems," Mr Gabuza said. Robert Mhlanga, the chairman of Mbada, said Zimbabwe can pin hopes for economic recovery on the diamonds. "Our mission, therefore, is to turn the Chiadzwa diamond fields into Zimbabwe's economic miracle as there are enough deposits to drive this country's economy to greater heights."

But the villagers have recently escalated their resistance. On December 14, the Chiadzwa Community Development Trust, acting on behalf of the 1,800 households, filed an urgent chamber application at the High Court in Harare, seeking an order preventing their relocation until the issue of compensation has been finalised. "As the eviction of the affected families looms," said the trust in the High Court papers, "there is no information about compensation they will receive, how it will be calculated and whether houses and other amenities will be provided for them at their destinations. These are matters that should be agreed before any relocation is contemplated or effected.

"The applicants and affected families stand to suffer irreparable harm if the interdict is not granted because they will lose their property in Chiadzwa which they will be forced to abandon." foreign.desk@thenational.ae

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Stars: Suriya, Bobby Deol, Disha Patani, Yogi Babu, Redin Kingsley
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The specs

Engine: 3-litre twin-turbo V6

Power: 400hp

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Price: From Dh215,900

On sale: Now

Mercer, the investment consulting arm of US services company Marsh & McLennan, expects its wealth division to at least double its assets under management (AUM) in the Middle East as wealth in the region continues to grow despite economic headwinds, a company official said.

Mercer Wealth, which globally has $160 billion in AUM, plans to boost its AUM in the region to $2-$3bn in the next 2-3 years from the present $1bn, said Yasir AbuShaban, a Dubai-based principal with Mercer Wealth.

Within the next two to three years, we are looking at reaching $2 to $3 billion as a conservative estimate and we do see an opportunity to do so,” said Mr AbuShaban.

Mercer does not directly make investments, but allocates clients’ money they have discretion to, to professional asset managers. They also provide advice to clients.

“We have buying power. We can negotiate on their (client’s) behalf with asset managers to provide them lower fees than they otherwise would have to get on their own,” he added.

Mercer Wealth’s clients include sovereign wealth funds, family offices, and insurance companies among others.

From its office in Dubai, Mercer also looks after Africa, India and Turkey, where they also see opportunity for growth.

Wealth creation in Middle East and Africa (MEA) grew 8.5 per cent to $8.1 trillion last year from $7.5tn in 2015, higher than last year’s global average of 6 per cent and the second-highest growth in a region after Asia-Pacific which grew 9.9 per cent, according to consultancy Boston Consulting Group (BCG). In the region, where wealth grew just 1.9 per cent in 2015 compared with 2014, a pickup in oil prices has helped in wealth generation.

BCG is forecasting MEA wealth will rise to $12tn by 2021, growing at an annual average of 8 per cent.

Drivers of wealth generation in the region will be split evenly between new wealth creation and growth of performance of existing assets, according to BCG.

Another general trend in the region is clients’ looking for a comprehensive approach to investing, according to Mr AbuShaban.

“Institutional investors or some of the families are seeing a slowdown in the available capital they have to invest and in that sense they are looking at optimizing the way they manage their portfolios and making sure they are not investing haphazardly and different parts of their investment are working together,” said Mr AbuShaban.

Some clients also have a higher appetite for risk, given the low interest-rate environment that does not provide enough yield for some institutional investors. These clients are keen to invest in illiquid assets, such as private equity and infrastructure.

“What we have seen is a desire for higher returns in what has been a low-return environment specifically in various fixed income or bonds,” he said.

“In this environment, we have seen a de facto increase in the risk that clients are taking in things like illiquid investments, private equity investments, infrastructure and private debt, those kind of investments were higher illiquidity results in incrementally higher returns.”

The Abu Dhabi Investment Authority, one of the largest sovereign wealth funds, said in its 2016 report that has gradually increased its exposure in direct private equity and private credit transactions, mainly in Asian markets and especially in China and India. The authority’s private equity department focused on structured equities owing to “their defensive characteristics.”

The specs
 
Engine: 3.0-litre six-cylinder turbo
Power: 398hp from 5,250rpm
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Transmission: Eight-speed auto
Fuel economy, combined: 6.5L/100km
On sale: December
Price: From Dh330,000 (estimate)
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The specs: 2018 Jaguar F-Type Convertible

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Engine: 2.0-litre inline four-cylinder

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Fuel economy, combined: 7.2L / 100km

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How to get there: Emirates currently flies from Dubai to Orlando five times a week.
COMPANY PROFILE
Name: Almnssa
Started: August 2020
Founder: Areej Selmi
Based: Gaza
Sectors: Internet, e-commerce
Investments: Grants/private funding
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