The crisis in Zimbabwe’s diamond industry has deepened as the Zimbabwe Diamond and Allied Minerals Workers Union (Zdamwu) mounts a last attempt to stop massive retrenchments at the Zimbabwe Consolidated Diamond Company (ZCDC). The development has triggered anger from local communities in Chiadzwa and raised fears of widespread poverty among affected workers.
The retrenchments, which could see over 600 workers lose their jobs, have already sparked protests from the Chiadzwa Community Share Ownership Trust (CCSOT) and villagers who depend on diamond mining for their livelihood. The state-owned diamond miner, formed in 2016 after the government revoked licenses of seven private mining companies, has been facing challenges due to falling global diamond prices.
The matter escalated recently when the Mutapa Investment Fund, which controls ZCDC, terminated a joint venture sales agreement with a Dubai-based firm. The move worsened the company’s financial crisis, leading to further downsizing. Zdamwu, led by its secretary-general Justice Chinhema, has written a formal petition to Mines and Mining Development Minister Winston Chitando, calling for urgent intervention to protect jobs.
In the petition dated July 9, Chinhema appealed to the minister to block the retrenchment exercise and instead push ZCDC to find alternative solutions to revive production. He stressed that the exercise, if allowed to continue, would drive hundreds of workers into poverty as many of them are tied to loans secured with the assurance of steady employment. According to him, dismissing workers at such a scale is “unjustified, careless, and inhuman.”
The union’s letter, which was also copied to ZCDC management, urged the company to explore retraining programs, value addition, beneficiation, and other creative solutions to reduce job cuts. Chinhema noted that over 290 workers had already left under voluntary retrenchment, while another 300 are being targeted for compulsory layoffs. He said these workers, many of whom are breadwinners, risk being left without income, worsening social and economic problems in affected communities.
The union also expressed concern that those who accepted voluntary retrenchment have not been paid their full dues. Internal documents seen by The Independent show that ZCDC is even struggling to pay salaries for those still in employment. Zdamwu warned that failure to clear outstanding payments could leave families without any means of survival.
Chinhema reminded the government of its commitment to making Zimbabwe a middle-income country by 2030. He argued that mass retrenchments in a key sector like diamond mining contradict the government’s economic policies, which emphasize employment creation, inclusive growth, and social stability. “The timing of this retrenchment exercise is particularly worrying because it undermines the country’s developmental goals,” the letter added.
The Chiadzwa Community Share Ownership Trust has also joined the call for ZCDC to suspend the retrenchment plan. According to community leaders, the layoffs would not only harm workers but also weaken social programs in the diamond-rich area. The trust, which represents the interests of local villagers, has been vocal in demanding that ZCDC fulfills its social responsibility by protecting jobs and ensuring benefits from diamond mining are shared fairly.
Since its formation, ZCDC has been at the center of both high expectations and controversies. The government initially injected US$80 million into the company when it took over the Chiadzwa diamond fields in 2016, arguing that private miners had been understating their earnings. However, nearly a decade later, the company is still struggling to stabilize operations and contribute meaningfully to the national economy.
Efforts by journalists to get comments from Minister Winston Chitando on how the government plans to address the retrenchment crisis were unsuccessful. But industry analysts warn that without swift intervention, the layoffs could fuel unrest and deepen mistrust between the government, mining firms, and communities in diamond-producing regions.
For now, the fate of more than 600 workers hangs in the balance as unions, villagers, and community leaders push for a review of the retrenchment plan. Whether the government will act on the appeals from Zdamwu and CCSOT remains to be seen, but the pressure is mounting on authorities to strike a balance between economic realities and social responsibilities in Zimbabwe’s diamond sector.
