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Partnership for Economic Development & Poverty Reduction
Semboja, H. H.
Semboja, H. H.
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Abstract
"This case study focuses on an example of a “Partnership for Economic Development and Poverty Reduction”. It explores the initial stages of the Mwadui Community Diamond Partnership (MCDP) project in Tanzania. Williamson Diamonds Limited (WDL) operates an open-pit diamond mine at Mwadui in the northern part of Shinyanga region (Kishapu District) in Tanzania. The company is a joint venture between the De Beers Group (75%) and the Government of Tanzania (25%). Tanzania is the only country where small-scale informal diamond mining and significant De Beers’ operations co-exist; independently operated small-scale informal diggings are adjacent to WDL’s mine at Mwadui. Artisanal diamond mining is an important source of income for the neighbouring communities. The mineral sector in Tanzania has grown dramatically in recent years but the success of the formal, large-scale mining industry has not been fully matched by development of the small-scale sector. Consequently, the Government is keen to see greater harmonization of large-scale operations and small-scale miners/ diggers. In 2006 the Government and De Beers identified an opportunity to work together to address, in a comprehensive way, the socio-economic challenges facing the artsisanal diamond mining sector in a way that involves the full cooperation and participation of the local communities. The overall objective of the Mwadui Community Diamond Partnership is to alleviate poverty and accelerate sustainable social-economic development in communities around the WDL mine at Mwadui. Specific objectives of the project are [1] to develop a multi-stakeholder partnership to formalize, transform and support artisanal and small-scale mining communities and [2] to promote sustainable economic development in the areas surrounding the mine. Central to this proposition is the necessity to facilitate fair prices for diamonds found, decent working conditions, technology that improves transparency in the payments system and that reduces reliance on intermediaries – for example, using a ‘smart wallet’ system, as well as providing support for development needs of the miners and their families. All of these ingredients of the partnership and future solutions on the part of De Beers reflect the commitment of the company to promote and protect human rights within the company’s sphere of influence, as a signatory of the UN Global Compact. De Beers is aware that this can only be done in partnership with other stakeholders and is committed to participating as an active partner mindful that all ten compact Principles, in one way or another, will be addressed through the programme of work in the years ahead. In September 2006, President Jakaya Kikwete and Jonathan Oppenheimer, a director of De Beers and the Chairman of Williams Diamonds Limited, Tanzania, formally launched the MCDP at the Clinton Global Initiative in New York. The Partnership project is currently in the diagnostic phase, which is being funded by De Beers. Moving forward it is anticipated that the project will involve a broad range of non-governmental organisations, development agencies, multi and bilateral donors and the private sector."
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Preprint
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2007
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With permission of the license/copyright holder