Wednesday, May 8, 2024
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To what extent is the autonomy of the UGPK effective in combating the illegal diamond trade?

The Kimberley Process is a joint initiative by governments, the diamond industry and civil society to stem the flow of rough diamonds from wars or conflicts onto the international market.

The process is implemented through a certification scheme that aims to track the production, transportation and marketing of rough diamonds and the issuing of Kimberley Process Certificates (attesting to their origin) by diamond-producing countries. These certificates ensure that conflict diamonds are not introduced onto the international market and that rough diamonds circulate within Kimberley Process member countries.

The initiative came into force in 2003 and has 81 participating countries, seven of which are from the SADC, namely Angola, South Africa, Botswana, Namibia, Lesotho, Zimbabwe and Tanzania. Mozambique formalized its intention to join the process in September 2014 and, two years later, in 2016, an international mission to evaluate and review the Kimberley Process was in the country, chaired by the Republic of South Africa and made up of representatives from the European Union, Angola, Botswana, Namibia, Zimbabwe and the World Diamond Council.

This mission resulted in a report requesting clarifications and recommendations, such as the need to appoint an Executive Secretary, the operationalization of the Kimberley Process Unit; the appointment of members of the Kimberley Process National Council; training of technicians in diamond valuation; the installation of a commercial warehouse.

The implementation of the recommendations made in 2016 was assessed by the second International Kimberley Process Assessment and Review Mission, which worked in Maputo this week, and Mozambique’s accession to the initiative.

According to the most recent study by the Center for Democracy and Human Rights (CDD), Mozambique has 43 diamond prospecting and research licenses and 79 applications in process, spread across the provinces of Gaza, Manica, Cabo Delgado and Niassa.

On January 30 of this year, the document establishing the financial and asset autonomy of the Kimberley process management unit was approved, and the government revised decree no. 64/2021, of September 1, which deals with the terms of the creation of the entity.

Crucial points of UGPK membership and autonomy

Controlling the flow of rough diamonds: The autonomy of Mozambique’s UGPK helps to establish a traceability and certification system for diamonds produced in the country. This means that diamonds exported from Mozambique must be accompanied by certificates proving their legitimate origin and that they are not linked to armed conflicts.

Prevention of Conflict Financing: By establishing the autonomy of the UGPK, Mozambique contributes to preventing the use of diamonds to finance wars and conflicts. This helps to promote stability and peace in the region, as well as preventing the illegal diamond trade from contributing to the perpetuation of armed conflicts.

Access to the international market: Kimberley certification allows Mozambican diamonds to be traded legitimately on the international market. This increases international buyers’ confidence in the origin of the diamonds and strengthens Mozambique’s reputation as a reliable diamond supplier.

Promoting sustainable development: Responsible management of mineral resources, including diamonds, is fundamental to Mozambique’s sustainable development. Joining the Kimberley Process helps promote sustainable practices in the mining industry, ensuring that economic benefits are equitably distributed and that the environment is protected.

In short, Mozambique’s accession to the Kimberley Process is crucial to guaranteeing the legitimacy and transparency of the rough diamond trade, contributing to peace, security and sustainable development in the country and the region.

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