Group hopes to harness diamond profits

LUANDA – Africa’s diamond producers have set up an association designed to ensure more of the revenue from sales of the gems stays in the world poorest continent and help stop the illegal trade in so-called “blood diamonds”.

The African Diamond Producers Association (ADPA), to be based in Angola’s capital Luanda, would increase cooperation, coordinate policies and strengthen efforts to stop the trade in blood diamonds, also known as conflict diamonds, said Manuel Africano, Angolan minister of geology and mines. “Countries on the continent are among the five biggest producers of this natural resource, but Africa has never been able to make its voice heard,” he said at the ADPA’s launch late on Saturday.”Africa is today creating an organ which will motivate member countries to cooperate in their strategies on prospecting, exploration, polishing and marketing of diamonds,” he said.Botswana is the world’s largest diamond producer by value while Russia, Canada, South Africa, Angola and the Democratic Republic of Congo are also major exporters.Africano said Africa’s diamond industry – producing about 1,9 billion carats worth US$158 billion a year – had helped improve the lives of millions of people and significantly contributed to the economies of several countries.”In Angola, for example, almost 20 000 people are employed directly by the diamond industry,” he said.”The industry generates 40 per cent of annual export revenues in Namibia and 33 per cent of Botswana’s GDP.”Despite its natural resources – including oil, gold, copper and diamonds – Africa remains the world’s poorest continent with most countries among the lowest scorers in the UN Human Development Index.The illicit sale of the gems has helped finance devastating civil conflicts in several African countries.An international organisation formed as a watchdog on the blood diamond trade, the Kimberley Process, is due to hold its annual meeting in Botswana this week.Officials said they hoped the ADPA, combined with the promotion of good governance, sound macroeconomic policies and peace, could see diamonds become more significant in Africa’s development.Private sector involvement was also key to the sector’s growth, they said.”The mining industry, particularly diamond mining, plays a significant role in creating employment and hence poverty reduction,” the African Union Commission’s commissioner for economic affairs, Maxwell Mkwezalamba, said.”(A) conducive environment is required in order to attract investments in the mining sector.Government policies and procedures, particularly in the area of taxation, remain a challenge to many investors.Harmonisation of policies among African countries is vital to boost industry, including mining,” he said.The ADPA includes 12 full member states as well as seven observer nations.Nampa-Reuters”Countries on the continent are among the five biggest producers of this natural resource, but Africa has never been able to make its voice heard,” he said at the ADPA’s launch late on Saturday.”Africa is today creating an organ which will motivate member countries to cooperate in their strategies on prospecting, exploration, polishing and marketing of diamonds,” he said.Botswana is the world’s largest diamond producer by value while Russia, Canada, South Africa, Angola and the Democratic Republic of Congo are also major exporters.Africano said Africa’s diamond industry – producing about 1,9 billion carats worth US$158 billion a year – had helped improve the lives of millions of people and significantly contributed to the economies of several countries.”In Angola, for example, almost 20 000 people are employed directly by the diamond industry,” he said.”The industry generates 40 per cent of annual export revenues in Namibia and 33 per cent of Botswana’s GDP.”Despite its natural resources – including oil, gold, copper and diamonds – Africa remains the world’s poorest continent with most countries among the lowest scorers in the UN Human Development Index.The illicit sale of the gems has helped finance devastating civil conflicts in several African countries.An international organisation formed as a watchdog on the blood diamond trade, the Kimberley Process, is due to hold its annual meeting in Botswana this week.Officials said they hoped the ADPA, combined with the promotion of good governance, sound macroeconomic policies and peace, could see diamonds become more significant in Africa’s development.Private sector involvement was also key to the sector’s growth, they said.”The mining industry, particularly diamond mining, plays a significant role in creating employment and hence poverty reduction,” the African Union Commission’s commissioner for economic affairs, Maxwell Mkwezalamba, said.”(A) conducive environment is required in order to attract investments in the mining sector.Government policies and procedures, particularly in the area of taxation, remain a challenge to many investors.Harmonisation of policies among African countries is vital to boost industry, including mining,” he said.The ADPA includes 12 full member states as well as seven observer nations.Nampa-Reuters