By Kingsley Jassi:
The recent ban on gemstone exports has created some stress in the industry that creates incomes for thousands of self-employed and employed Malawians.
According to some players in the sub-sector, the export ban has crippled domestic purchases of gemstones as exporters are uncertain on what the future holds while their income sources are temporarily closed.
Percey Maleta of Nyasa Mining Cooperative exports different types of gemstones under Maleta Gems and Jewels and has a running contract to export 100 grammes of red garnets every week.
He says the ban has now prevented his company from fulfilling the obligation and is not sure if he will return the business deal.
“Malawi is not the only country with gemstones. They can choose to get them from other countries instead of waiting for 21 days and that will make us lose the market,” Maleta said.
Meanwhile, the Reserve Bank of Malawi, which entered the gemstones market three years ago through Export Development Fund (EDF), has started a hunt for an independent gemstones assessor to certify the value and traceability of the stones.
The Ministry of Mining issued a temporary ban of exports and processing export permits of gemstones to conduct a review of valuation framework, saying there has been undervaluation of the stones that lead to revenue losses by the government.
However, according to Maleta, the government should have dealt with the individual suspects of the malpractice rather than punishing the whole industry—which has been striving to formalise.
“We have done a lot trying to organise this industry and many are now operating formally but with this ban it is those in formal businesses that are affected. As we speak, smuggling is happening, even more now that there is a ban,” Maleta said.
Gems Association of Malawi Southern Region Chapter Chairperson Philemon Galawanda said there was a risk of many vendors falling out of business because they could not keep the capital for 21 days without doing business.
Galawanda said the export ban had also affected local trading as exporters were no longer buying from artisanal miners following the uncertainty.
“People have lost incomes; we are talking of small-scale miners who depend on gemstones for their daily lives. This ban came at a very tricky time when things are already bad economically,” Galawanda said.
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