Mnangagwa supports Masisi on diamond sales deal

Zimbabwe President, Dr Emmerson Mnangagwa is impressed by how his Botswana counterpart Dr Mokgweetsi Masisi and his government stood their ground and obtained a better deal during the Sales Agreement and Mining agreement negotiations with De Beers.Standing to show support and solidarity with his brother President Masisi, as they refer to each other, Mnangagwa told the media at a press conference at the end of the fourth session of the Botswana- Zimbabwe Bi- National Commission in Maun that Zimbabwe has banned the exportation of raw minerals."We believe that if we do not have technology then our minerals are safe where they are”.Mnangagwa called on African countries to assert ownership of their natural resource endowments and always take a firm stance when negotiating with foreigners seeking to invest in their nations as this is the only way theycould ensure that they derive maximum benefits.He was buttressing a point by President Masisi in his response to a question on how he managed to get a better deal from the mining giant company, De Beers - partners of Botswana government on extraction of diamonds.Masisi explained that his country was recently locked in protracted negotiations with De Beers - the world’s largest diamond company – over a new sales agreement deal.Masisi described how he rebuffed a proposal by De Beers who initially had tabled an unpleasant offer that would have witnessed Botswana drawing a pittance from its vast diamond wealth."I never had a moment’s thought that it was a David and Goliath affair. If at all there may have been a suggestion that it may have been a David and Goliath affair.“But I felt that I was on the upper hand and I took the attitude that I was on top. So, I didn’t care what money they had or what technology they had; the resource is in the ground and it is ours."President Masisi said all potential investors in the extractive industry must first seek permission from local authorities to explore the resource in a specific area."That requires commissioning by the permission giver who is the one on top. Even if you are poor, it feels good. I felt good. I felt empowered by the knowledge I had gathered over time. I looked through all the agreements.”Masisi conveyed that he had to assemble a team of like-minded individuals to lead the negotiations. He highlighted the influence of powerful institutions and organisations in shaping the mindset of the populace, instilling a belief that they held the upper hand due to their capital, technology, knowledge, market access, and value-adding capabilities, leaving Botswana with little leverage.These entities also ensured that the market was oriented externally and that regulatory mechanisms were controlled from offshore.He explained that De Beers had presented an unfavourable proposal, which he described as “dreadful” and something he wouldn't wish upon anyone, despite not harbouring any personal enmity.This agreement constrained Botswana to operate solely at a primary level, akin to reverting to the Stone Age. However, Masisi clarified that Botswana ultimately negotiated for a more favourable arrangement. This new agreement will see the country receiving a larger share of diamonds produced through the Debswana joint venture between the Government and De Beers.As if the two had rehearsed and agreed upon on how they will answer questions, President Mnangagwa shot from the hip saying Zimbabwe has implemented a policy banning the exportation of un-beneficiated minerals, which aims to boost domestic processing and derive greater value from its natural resources.He explained that the exportation of unbeneficiated base mineral ore without written permission from the Government has been banned. Mnangagwa urged all African nations not to shy away from implementing robust policies aimed at enhancing the local processing of their mineral resources.He reiterated Zimbabwe's stance, emphasising the ban on exporting raw minerals and the imperative to add value within the country. Mnangagwa highlighted the importance of a comprehensive strategy to maximise the value derived from Zimbabwe's mineral wealth, emphasising the need to develop local beneficiation capabilities where necessary, even if it requires acquiring new technology.His remarks received enthusiastic applause as he underscored Zimbabwe's commitment to withhold mineral exports until beneficiation technologies are in place.Mnangagwa acknowledged historical reluctance among some African nations to fully assert control over their resources, often due to concerns about deterring foreign investment.However, he pointed out the pitfalls of such hesitance, noting that it frequently results in unequal partnerships where foreign companies profit disproportionately while local communities see minimal benefits.

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Mnangagwa supports Masisi on diamond sales deal