Marange communities protest ZCDC retrenchments

Published: 17 hours ago

Communities in Zimbabwe's diamond-rich Marange fields have launched a rare protest against the state-owned Zimbabwe Consolidated Diamond Company (ZCDC), demanding an immediate halt to a retrenchment exercise that has already left hundreds jobless.

In a strongly worded letter to ZCDC, the Chiadzwa Community Share Ownership Trust (CCSOT) warned that soaring unemployment in the region risks triggering deeper economic and social turmoil. The trust accused the mining giant of sidelining the very communities that provide its social licence to operate.

"ZCDC must consult us exhaustively before making any drastic decisions that affect livelihoods in Chiadzwa and Zimunya," CCSOT CEO Hardwork Mukwada wrote in last week's letter.

ZCDC is retrenching 400 workers, citing a global diamond market crash marked by a 74% plunge in prices since 2020. The collapse has been fueled by the rise of lab-grown diamonds and prolonged underinvestment in local mining operations.

CCSOT contends that the retrenchments were imposed unilaterally without meaningful dialogue involving the tripartite pillars of Zimbabwe's diamond industry: community, government, and business.

"While we understand the labour laws and the challenging market conditions, there was a clear need for boardroom engagement before compulsory retrenchments," Mukwada stated. He urged ZCDC to freeze the layoffs and recall retrenched workers pending further consultations.

The letter was also copied to the Mutapa Investment Fund (MIF), Zimbabwe's sovereign wealth fund that oversees state enterprises including ZCDC.

The dispute emerges amid volatile diamond export performance. Although April 2025 diamond receipts spiked to US$33.5 million—up 912% from March—the surge largely reflected the delayed sale of a single parcel. Overall, diamond earnings plummeted 46% in 2024, falling from US$303 million in 2023 to US$163.76 million.

With revenues collapsing, the workforce is bearing the brunt. ZCDC's layoffs reflect a broader industry downturn that has also impacted Murowa Diamonds, operated by Riozim.

In response, ZCDC denied accusations of poor stakeholder engagement, asserting it consulted all relevant parties before proceeding. A company statement dated July 30 said:

"ZCDC engaged the resident minister, local senators, MPs, government leaders, party officials, and traditional leaders including chiefs Marange and Zimunya. We obtained the necessary certificates from the Ministry of Public Service, Labour and Social Welfare before effecting retrenchments."

ZCDC was created in 2016 after government expelled seven private miners accused of industrial-scale looting from the Marange fields. With an initial US$80 million government investment, it aimed to improve oversight and deliver long-promised community benefits.

Today, that promise hangs in the balance as global market turbulence threatens to pit corporate priorities against community welfare.

For the people of Marange — whose ancestral lands hold Zimbabwe's most valuable diamonds — the unfolding crisis is a stark reminder that wealth generated below their feet has yet to translate into sustainable prosperity above ground.
- Independent

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