AWDC delivers strong message at ZimAsset Seminar in Zimbabwe: Antwerp is partner for sustainable growth

Ari Epstein, CEO of the Antwerp World Diamond Centre (AWDC) delivered a strong message of support for long-term growth at the ZimAsset Awareness Seminar, a Parliamentary Hearing on the future economic development of Zimbabwe, held in Harare. Invited by Parliament, Epstein shed more light on why the world’s leading diamond trade centre continues to be a committed partner for sustainable development growth of Zimbabwe’s diamond industry. Elaborating on the success of the recent diamond tenders of Marange goods in Antwerp, he demonstrated how Zimbabwe can generate tens of millions US$ in additional revenues by tendering rough diamonds in Antwerp.

In his presentation, Mr. Epstein highlighted how Antwerp has kept its promises to Zimbabwe, by acting in line with the EU objectives of long-term inclusive economic development after the lifting of the EU sanctions that prohibited trade of Marange diamonds in Antwerp. In addition and following the actual lifting of the sanctions in September 2013, Antwerp vouched it could guarantee higher and transparent revenues for the Zimbabwean Government through the marketing of Marange diamonds in this leading diamond hub.

Results from the recent tenders held in Antwerp have demonstrated the immense buying power and benefits the world’s leading diamond-trading platform has to offer. Performance zoomed past expectations, as on average, the sales in Antwerp generated prices that were 30% above the producing companies’ expectations and an astonishing 50 to 60% higher than prices fetched in Zimbabwe and other diamond centres.

Moreover, Epstein revealed that for the first time in four years, a transparent and appropriate return on investment for the government has been achieved. Prior to trading in Antwerp, Marange goods were sold in Zimbabwe but also in other diamond centres, at an average price of US$ 47 per carat, resulting in an average return on investment for the Zimbabwean treasury of US$ 7.05/ct. By contrast, Antwerp, due to its unparalleled critical mass of buyers, achieves an average price of US$ 80/ct., or US$12 per carat in royalties for the Treasury. If all sales were to go through Antwerp, Zimbabwe would gain more than US$ 400 million  in extra revenues, resulting in an increase of US$ 60 million of royalties per year. Naturally, the total sum of money flowing back to Treasury would be exponential of this figure.

Mr. Epstein emphasized that the AWDC is ready to take its commitment another step further, “We have created a break-through by opening up the market for Marange goods and creating real added value in a fully transparent manner. We are now willing and able to help Zimbabwe to develop further, by sharing our expertise and knowledge on how the country can yield more benefits from its resources.”

The AWDC presented a draft Memorandum of Understanding to the government in order to embark on a joint long-term relationship where technical assistance, knowledge transfer and common value creation are key. 
The AWDC CEO however cautioned that beneficiation requires the development of local skills and infrastructure as well as strong and long-term commitments, “We want to help build dreams, but we are not here to build a fantasy that is bound to fail. We are in it for the long run and that means taking a step-by-step approach.”