The diamond rush that never was

28 Jun, 2015 - 00:06 0 Views
The diamond rush that never was Once upon a time . . . Ishmael Mutema, who used to slaughter a cow everyday, now relies on selling goat meat

The Sunday Mail

Once upon a time . . . Ishmael Mutema, who used to slaughter a cow everyday, now relies on selling goat meat

Once upon a time . . . Ishmael Mutema, who used to slaughter a cow everyday, now relies on selling goat meat

It is back to square one for Munyaradzi Chishingwi (45) of Kurauone Village in Marange, some 60km west of Mutare. Son of a poor subsistence farmer, Chishingwi moved to Bulawayo soon after finishing secondary school. Starting off as a security guard, the father of four moved to commodity broking and lady luck smiled on him. In no time his business enterprise, which included a printing company, flourished.

Living comfortably, he owned a spacious apartment in the heart of the city and his children attended good schools.

Then came the discovery of diamonds in Chiadzwa in 2006, igniting a frenzied rush as tens of thousands of Zimbabweans and foreigners converged on the area to dig for the precious stones.

Remarkable stories of how some of Chishingwi’s neighbours and family members became rich overnight tempted him to relocate to his rural home. Chishingwi wanted to have his own piece of the cake.

A shrewd businessman in his own right, he soon began to realise a lot of money from buying and reselling diamonds. He quickly expanded his enterprise to include three shops, haulage trucks and a house in Mutare’s Chikanga suburb. The relocation was proving to be the best decision of his life. However, Government ordered the removal of the illegal diamond panners, known as “gwejas”, and order was restored in Chiadzwa.

Chishingwi’s businesses declined dramatically. His trucks have broken down and two of his shops are closed.

Pondering what the future holds for him, the businessman has gone back to the drawing board and is entertaining thoughts of packing up what he still has and returning to Bulawayo to start afresh.

“I made a grave mistake. Business is at an all-time low and I cannot afford to send my children to the schools that I want them to attend. If I go to Bulawayo, I will find somewhere to start from,” a visibly confused Chishingwi said. He is not alone.

In fact, he could actually be better off when compared to other people.

deserted.......Hot Spring business centre used to be a hive of activity

deserted…….Hot Spring business centre used to be a hive of activity

People who had anticipated rich pickings from the diamond fields are singing the blues. The majority of the seven diamond mining companies in Chiadzwa are reeling and retrenchments have seen many lose their jobs.

A visit last week to business centres surrounding the diamond fields that used to immensely benefit from the mining operations showed business has slowed down. Ishmael Mutema, who runs a butchery at Birchenough Business Centre, is feeling the heat.

“During the days when panning was still going on, I used to slaughter a cow every day. Now it takes me up to three days to sell meat from a single goat. If I had a choice, I would have closed this business a long time ago and do something else,” Mutema said.

In the three days of selling a goat, Mutema realises a profit margin of between US$10 and US$15.

Mutema’s customers are mostly civil servants who, however, do not have much by way of disposable income.

Those that used to depend on windfalls from illegal diamond trading are now doing menial jobs and the majority have resorted to brick moulding.

“Brick moulding usually begins in September but this year we started early since we have nothing else to do. Some of the villagers are helping out in the irrigation scheme,” said Richard Dhliwayo, a resident.

The workers are given agricultural produce as payment since the owners of the plots are not able to pay in cash.

A number of businesses that were opened during the illegal panning era have since closed shop.

The trend is the same at Murehwa Business Centre, popularly known as Bambazonke, which was at one time a thriving business hub.

Panners and traders passed through the business centre on their way to and from the diamond fields.

As a result of the strategic position of the centre, several businesses sprouted at the centre – ranging from hair salons to engineering firms. Residential stands were availed and a number of houses were constructed.

The centre, which is located in this drought-prone area, is now a sorry sight with unfinished buildings being the most prominent feature.

“Business is very low. We used to enjoy brisk business but now we are struggling,” said Memory Mafarachisi, a shop attendant.

At Hot Springs, Jacob Canisius Nyahanana, a marketing agent for Coverlink Holdings, which sells motor vehicle insurance and offers money lending services, was singing the same tune.

“We are struggling. Our major customers were workers from the diamond mining companies. The workers are no-longer paid on time and some of them have been retrenched,” Nyahanana said. The company is now offering loans to civil servants.

“We used to lend money to the mine workers but it is very risky to do so now. The workers are being retrenched and are also not being paid on time. We cannot do business with the workers since most of them will end up defaulting on payments,” Nyahanana said.

A flea market vendor, Mercy Ndihana, who used to get as much as US$200 each daily now realises less than US$20. “I am here because I cannot just sit at home and do nothing. Mine workers are not being paid and this has greatly affected our business,” Ndihana said.

One of the two banks established at Hot Springs closed its doors.

Chakohwa Business Centre has suffered the same fate as it was practically deserted. A once thriving flea market has since been abandoned and few women sell their vegetables their. Most of the liquor stores are either closed or are limping along.

Ananias Maraire, a businessman, is counting the losses: “I constructed this house with the intention of converting it into a lodge. This is money flushed down the drain.”

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