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  Illegal smuggling playing havoc with Africa's gemstone trade


July 14, 2013


Zambia produces as much as $200 million a year worth of emeralds, making it the world's third largest miner of the gemstone, after Colombia and Brazil. But illegally traded emeralds account for about 40 percent of the country's output said Deputy Finance Minister Keith Mukata, in a recent media interview.

According to Mukata, while it is difficult to know the exact size of the illegal trade, it is believed that as much as $60 million worth of emeralds leave Zambia illegally each year

Zambia's largest emerald producer, Gemfields, estimates it lost as much as $17 million in potential revenue from theft in the year ended June 30, 2012. The company employs Nepalese gurkhas as guards, but the smugglers still get through.

It is not only Zambia. Smuggling is rife in Kenya as well, with vast quantities of tourmaline and tsavorite being taken from the country, with no customs revenues or royalties being paid.

"We are losing a lot of revenue by failing to document what is mined and how it leaves the country," says Monica Gichuhi, CEO of the Kenya Chamber of Mines, speaking to the local media.

Ruby is mined in Kenya's Taita Taveta, Kwale, Kitui, West Pokot, and Baringo; tsavorite is mined in the Taita Taveta and Kwale districts; sapphire is mined in Kitui, Mwingi and Isiolo districts; tourmaline is mined in Taita Taveta, Kajiado, Kwale, and Kitui districts; and aquamarine is mined in Meru and Tharaka. In Taita Taveta and Kwale unlicensed dealers are in abundance, and in Kitui, Kakamega and Meru smugglers take advantage of the porous Kenya-Tanzania border.

To get a handle on the problem, the International Colored Gemstone Association (ICA) is currently working with the United Nations to put in place a system for gems, modeled on the Kimberley Process in diamonds. The plan under discussion involves the tracking and tracing of the provenance of gemstones, and it is expected that the project will take four years to implement.

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