Munich Personal RePEc Archive

Chiadzwa Diamonds: Zimbabwe’s potential economic recovery option

Makochekanwa, Albert (2009): Chiadzwa Diamonds: Zimbabwe’s potential economic recovery option.

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Abstract

The research was motivated by the need for Zimbabwe’s financial assistance to kick-start the recovery of its economy from the meltdown it has been for more than a decade. Since the formation of the government of national unity (GNU) on February 13, 2009, government of Zimbabwe’s (GoZ) begging bowl for US$8.3 billion financial assistance has been extensively preached to both southern African countries and the world over. This study presents a totally different financial avenue, Chiadzwa diamond. Using the two estimated monthly revenue sales of US$1 billion and US$1.2 billion from Chiadzwa diamond, the study argues that the country’s immediate financial requirements of at least US$8.3 billion can be wholly met with proceeds from this mine field only if the new unity government has a political will. Partial projections presented in this paper shows that, once diamond revenue sales are harnessed by the government for the benefit of the whole economy as opposed to the current situation where the few revenues are only benefiting few politicians and their relatives, the country’s GDP can jump from the 2008 level of US$3.2 billion to at least US$16.7 billion starting 2009. The paper also suggested management frameworks that the GoZ can consider implementing in the management of Chiadzwa diamond.

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