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Centre for Natural Resource Governance (CNRG) director Farai Maguwu has warned that countries that are endowed with natural resources are more likely to experience socio-economic and political challenges compared to those with few natural resources.
Maguwu said countries that have a lot of natural resources are more susceptible to poverty, inequality, corruption, dictatorships, and even military coups when compared to those without natural resources.
He said the abundance of natural resources can result in prosperity if there is discipline and visionary leadership.
Maguwu also said resource looting is similar to other societal vices such as terrorism and drug smuggling. He was quoted by <a href="https://cite.org.zw/cnrg-calls-for-community-involvement-to-stop-natural-resource-looting/">CITE</a> as saying:
<blockquote>
People must show complete disgust and rejection of the practice, there must be consequences for those who commit such crimes.
We must relate resource looting to our decaying hospitals without drugs, ambulances, and beds, we must connect resource looting to our shameful roads, and lack of water, and electricity.
Once this connection is made clear, we must demand that those in high offices account for our resources.
</blockquote>
Maguwu highlighted the importance of enlightening communities about their constitutional rights so that they are not taken advantage of by mining companies.
He demanded that Parliament should have the power and mandate to scrutinize every transaction to ensure that the national interest is not compromised.
More: <a href="https://www.pindula.co.zw/">Pindula News</a>

Pindula News

Maguwu Demands Community Involvement To Stop Natural Resource Looting

A local resource campaigner says Zimbabwe has long surpassed the Government’s target to increase mineral revenues to US$12 billion annually from December this year but that most of the revenue is being siphoned by elites.
Farai Muguwu, the executive director at the Centre for Natural Resource Governance (CNRG), said the looting of the country’s mineral resources is “at an industrial scale” and illicit financial flows (IFFs) are rising.
Responding to questions by the <a href="https://www.newsday.co.zw/theindependent/local-news/article/200014570/looting-at-industrial-scale">Zimbabwe Independent</a> on the effectiveness of the country’s legal framework to tackle IFFs, Maguwu said several state agencies mandated to fight smuggling are inept. He said:
<blockquote>
We have long surpassed the US$12 billion mining economy. It’s just that what is trickling into Treasury is insignificant compared to what is being smuggled.
If you recall (the late former president Robert) Mugabe’s US$15 billion confession, read together with the gold mafia exposé, the Sentry report and various others produced by local CSOs, one is convinced Zimbabwe is losing in excess of US$15 billion in potential revenue annually.
The country is well able to finance its own development agenda. The economic possibilities of Zimbabwe are limitless if IFFs are plugged.
</blockquote>
In 2014, Mugabe claimed that Zimbabwe had lost US$14 billion through IFFs within a decade.
Maguwu demanded the disbandment of the Zimbabwe Anti-Corruption Commission (ZACC) over its failure to combat graft. He said:
<blockquote>
A big challenge that remains is the enforceability of the anti-corruption laws. ZACC needs to be disbanded as it is not fit for purpose.
Their inaction over the gold mafia (scandal) exposes them as a toothless and seriously compromised institution.
While the ZRP and airport security have been doing their job professionally at times, the judiciary and the National Prosecuting Authority (NPA) have been a big letdown.
Someone caught smoking marijuana will get a much stiffer penalty than a person caught smuggling minerals.
It’s very hard to understand how certain smugglers were acquitted, making a complete mockery of our justice system.
In 2012 Shmuel Kainan Klein, an Israeli pilot was caught red-handed trying to smuggle more than 1 200 pieces of diamonds at Robert Gabriel Mugabe International Airport (RGMIA).
According to the Kimberley Process (KP) Certification Scheme, of which Zimbabwe is a founding member, no diamond parcel can cross a border without an accompanying KP certificate from the exporting country. He didn’t have.
Nevertheless, our courts and prosecutors connived to clear him. Henrietta Rushwaya is another case in point.
</blockquote>
“Gold Mafia” was a documentary aired by Al Jazeera’s Investigative Unit (I-Unit) in early 2023.
The four-part documentary exposed gold smuggling by individuals affiliated with Zimbabwean government officials and the ruling party.
More: <a href="https://www.pindula.co.zw/">Pindula News</a>

"Looting Of Zimbabwe's Mineral Resources Happening At An Industrial Scale"

Zimbabwe is losing at least three tonnes of gold valued at US$157 million monthly through illicit financial flows, a new report by the Centre for Natural Resource Governance (CNRG) claims.
The report, titled Zimbabwe’s Disappearing Gold: The Case of Mazowe and Penhalonga, was officially released on 8 July 2022.
It says Zimbabwe is losing three tonnes of gold monthly worth US$157 million through siphoning by influential ZANU PF politicians, government officials and their close business associates.
The report further claims that cumulatively, gold money worth billions of dollars is leaving the country through the black market and the proceeds therefrom are stashed in offshore accounts. Part of the report reads:
<blockquote>
Illicit financial flows (IFFs) in the artisanal mining sector in Zimbabwe are responsible for leakages of an estimated three tonnes of gold, valued at approximately US$157 million every month.
The sector has now spread its tentacles from alluvial gold deposits along rivers and dry riverbeds to large-scale disused mines that are now patronised by politicians and ruling party officials.
</blockquote>
Home Affairs and Cultural Heritage Minister Kazembe Kazembe said that the country is losing US$100 million a month through gold smuggling.
Finance and Economic Development Minister Mthuli Ncube has estimated that between 30 tonnes and 34 tonnes of gold produced in Zimbabwe is smuggled to South Africa annually.
According to the CNRG report, Zimbabwe is losing billions of dollars through smuggling, corruption and price manipulation by cartels, corrupt networks and criminal syndicates. Says the report:
<blockquote>
Over the past four years, Zimbabwe has experienced an unprecedented increase in illicit financial flows.
This problem dominates the mining sector in general but is more pronounced in the gold mining sector where artisanal mining is rampant.
Artisanal gold mining, which has become a major mining activity in Zimbabwe, is fueling leakages of gold into a parallel system whose actors include those connected to the upper echelons of power in the country.
The entire phenomenon reveals collapsed and captured state institutions that are expected to steward and account for national resources.
An element of limited statehood has manifested itself in the mining sector.
The state has voluntarily withdrawn from regulating particular policies and, as a result, criminal elements are not punished or held to account.
</blockquote>
Artisanal and small-scale miners produce over 60% of total gold deliveries but some of their mining activities are unregulated. Reads the report:
<blockquote>
The country has become a huge gold mine, with artisanal mining occurring almost everywhere. Incidences of gold-rushes are frequent, chaotic and well-immersed in informality.
Gold money amounting to billions of dollars is flowing through a parallel system, outside the formal market, every year and consequently beyond the sanction of the law, whereby political and social elites deliberately keep state institutions weak in order to reap economic and political benefits or to increase rents.
Today, the sector is now largely characterised by lawlessness, violence and blatant disregard for human rights and reigns of terror through marauding gangs known as MaShurugwi (machete-wielding gangs now mostly silenced).
The practice of artisanal mining is therefore illegal as it contravenes the Mines and Minerals Act [Chapter 21:05] which neither recognises nor defines an artisanal miner.
Despite the illegality, in 2016 the Reserve Bank of Zimbabwe (RBZ) announced a policy of buying gold from artisanal miners on a ‘no questions asked’ basis.
This was meant to bolster and boost gold deliveries and to expand government’s revenue basket.
Nevertheless, the RBZ’s Fidelity Printers and Refineries (FPR) gold-buying rates remain lower than black market rates, thereby fuelling side marketing and smuggling of gold.
</blockquote>
<h4>More: <a href="https://thenewshawks.com/us157m-lost-monthly-to-gold-plunder-illicit-financial-flows-in-zim/">The NewsHawks</a></h4>

Zimbabwe Losing US$157 Million Monthly To Gold Plunder | CNRG Report

<blockquote>
<h2 class="blog-single-title">CIVIL SOCIETY STATEMENT ON CHINESE INVESTMENTS IN ZIMBABWE: COMMUNITIES’ SENTIMENTS SHOULD BE RESPECTED</h2>
We, the Zimbabwe Civil Society groups, united in our common objective of defending our communities and national heritage against investment projects that disempower and impoverish our people, seek to register our deep concern with the behaviour of Chinese business operations in Zimbabwe.
Our joint statement is not meant to defame China or trigger xenophobic resentment towards Chinese nationals in Zimbabwe. On the contrary, we seek fair and mutually beneficial relations between the two countries.
We have however noted with deep concern the threats of displacements and mining projects in ecologically sensitive places around the country without any due regard for the concerns of the local people.
Zimbabwe is a country endowed with vast natural resources in the minerals, flora and fauna categories. These resources have the potential to reduce poverty, improve human security and help achieve President Mnangagwa’s target of an upper-middle-income economy by 2030 if managed properly.
Sadly, the abundance of natural resources has become the major cause for poverty, inequality, human rights abuses, environmental crimes and transnational organized crime that are prejudicing the country of billions of dollars annually and this has been going on for decades.
Regarding the growing resentment towards Chinese investments in Zimbabwe, it is important to highlight that for the past 15 or so years, China has been the dominant player in Zimbabwe’s minerals sector, which saw Chinese small scale and large-scale miners getting deep into rural communities to start mining operations.
Some of these mining operations have left deep scars in the affected communities. For instance, in Marange, Anjin operated between 2011 and 2016 and was accused by the then Finance Minister of not paying anything to treasury despite the company boasting of being the largest diamond mine in the world by volume of production.
The company made several promises to the families it displaced to Arda Transau and all the promises were broken. Many former workers were arbitrarily dismissed and are still owed to this day.
The Marange community recently (Nov. 2021) held a protest against Anjin resulting in 29 of them, including the Headman being arrested.
In Mutare, there was a recent outcry after a Chinese company, Freestone Mines, started ground preparation for quarrying at Dangamvura mountain without an environmental impact assessment.
The Ministry of Mines, Mutare City Council and Freestone itself all confirmed that an environmental impact assessment was a prerequisite requirement but had not been carried out. The local traditional leadership was not consulted either.
Dangamvura Mountain is an ecologically sensitive site that is situated in Mutare’s green zone and very close to educational institutions and residential areas.
There are many cases across the country where the Chinese investors have been in a standoff with local communities.
The cases include the desecration of shrines and graves in Mudzi black granite mines and Dinde coal explorations in Hwange.
Local communities have come to realise (without any external influence) the losses they are incurring at the hands of the Chinese companies operating in their localities.
It is important to note that Zimbabweans are so learned to be able to distinguish exploitative, destructive development from progressive development without having to be influenced by anyone. 
The primary objective of attracting investors to Zimbabwe is to ensure the Zimbabwean people benefit from their natural resource endowment.
True investors leave communities in a better state than they found them in. They build infrastructure which the community will continue to use even long after the investors have left.
We appreciate the positive developments done by other mining companies in Zimbabwe whose investments have been behind the establishment of towns like Bindura, Hwange, Shurugwi and Zvishavane.
There are companies like Zimplats which have massively invested in educational, health and road infrastructure for the host communities.
They have built standard residential areas which offer comfortable housing for their staff and families. We are yet to see such investments coming from investors from China, leaving us to question who exactly is benefiting from the Chinese investments. 
We expect the Zimbabwe government and the media to engage China from the vantage point of advancing Zimbabwe’s national interest and promoting and protecting the dignity of the Zimbabwean people against corporate injustice and human rights abuses. 
We call on the Government of Zimbabwe to openly engage affected communities through public hearings to understand the sentiments of the citizens regarding human rights, environmental and social impacts of Chinese investments in those communities. It is essential to listen to the real people in the affected communities.
The Chinese Ambassador should find time to tour the Chinese operations to observe the working conditions of the employees.
The Chinese investors in Zimbabwe should be accountable to local communities and open to public scrutiny, starting with their contracts, their taxes and beneficial ownership
Law enforcement, EMA, rural district councils and Chiefs should conduct their mandate of protecting natural resources and local people without intimidation or fear of victimisation by those siding with the investors.
We are proud Zimbabweans, masters of our own destiny. We neither pander to the West nor to the East. We place it on China that how would they react if an African start blasting the Great wall, without a license, and uses Sino-Afro ties as a defence?
If China respects and loves Africa as it purports, then the primary sign is to place ordinary citizens at the centre of development.
ORGANIZATIONS THAT ENDORSE THE STATEMENT
<ol>
<li>Bocha Diamond Community Trust</li>
<li>Centre for Natural Resource Governance</li>
<li>Community Media and Local Development Initiative</li>
<li>Crisis in Zimbabwe Coalition</li>
<li>Green Governance Africa Trust</li>
<li>Godlwayo Community Development Trust</li>
<li>Gweru East Ratepayers Union for Development</li>
<li>Manica Youth Assembly</li>
<li>Masvingo Centre for Research and Development</li>
<li>Masvingo Residents Trust</li>
<li>Masvingo United Residents and Ratepayers Alliance</li>
<li>Mission To Live Trust</li>
<li>Mutasa Youth Forum</li>
<li>Midlands Natural Resources Agenda</li>
<li>Mutare Informal Traders Association</li>
<li>Mutoko Shine Faith-Based Trust</li>
<li>Peacebuilding and Capacity Development Foundation</li>
<li>The Eastern Caucus (TECa) Manica</li>
<li>Shangano Arts Trust</li>
<li>United Mutare Residents and Ratepayers Association</li>
<li>Young Entrepreneurs Trust Zimbabwe</li>
<li>Zivai Community Empowerment Trust (ZiCET)</li>
<li>Zimbabwe Diamonds and Allied Workers Union</li>
<li>Zimbabwe Democracy Institute</li>
<li>Zimbabwe Organisation of Youths in Politics</li>
<li>Zimbabwe Peace Project</li>
<li>Commercial Federation of Manicaland Trust</li>
</ol>
</blockquote>
<h4>More: <a href="https://www.cnrgzim.org/civil-society-statement-on-chinese-investments-in-zimbabwe-communities-sentiments-should-be-respected/">Centre for Natural Resource Governance</a></h4>

FULL TEXT: Civil Society Statement On Chinese Investments In Zimbabwe

Underground coal fires in Hwange town are increasingly becoming a threat to human life and infrastructure.
A road linking Hwange Colliery Company (HCCL)’s out-of-service Number Two Colliery and Number Three Colliery mines was destroyed by the lava-like fires but it has not been attended to for months despite authorities having been notified.
The coordinator of Greater Hwange Residents Trust, Fidelis Chima, said about 10 000 people are in danger as the fires have been intensifying in the past two decades. Said Chima:
<blockquote>
The underground fires at Makwika and Madumabisa have been there for years, the place was once mined for coal, now when oxygen gets in contact with the mineral it produces heat which eventually results in these fires.
It is possible that there could be people living on top of these fires, our greatest fear is that some of the people and houses will be consumed by these underground fires.
These fires have been there for more than 20 years but they are intensifying at a very scary proportion and more than 10 000 people are now under threat.
</blockquote>
Centre for Natural Resource Governance (CNRG) director Farai Maguwu said the Government may need to move Hwange residents from high-risk areas. He said:
<blockquote>
Putting out the fires is not possible. Government and the HCCL need coal seam fire trackers to identify high-risk areas and cordon them off.
Some settlements need to be wholly abandoned and a resettlement plan put in place, while roads need to be constantly monitored otherwise moving vehicles can be swallowed.
</blockquote>
Recently, an eight-year-old girl died several days after she fell into one of the burning pits and suffered severe burns to her legs.
The girl was ferried to Mpilo General Hospital in Bulawayo but doctors could not save her life even after amputating her legs.
<h4>More: <a href="https://www.newzimbabwe.com/underground-coal-fires-wreak-havoc-in-hwange/">NewZimbabwe.com</a></h4>

Lava-like Underground Coal Fires Wreak Havoc In Hwange

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