Violence Limiting CAR Diamond Exports

RAPAPORT... Continued violence in the Central African Republic (CAR) ismaking it impossible for the nation to develop its diamond sector, according to the World DiamondCouncil (WDC). A massacre in Bria left 30 people dead last week - thelatest in a string of fatal incidents in the eastern region, which is currentlyprohibited from exporting rough under the Kimberley Process (KP). While increasing the number of "green zones" -areas the KP has deemed compliant with its regulations - is essential for the sectorto generate more revenue, that can only happen if those areas of the country cooperate withthe KP, said Stephane Fischler, president of the WDC, which represents theindustry at the KP. "[The government would need to meet] criteria related to assuringhuman security and free access," Fischler added. "Only once these criteria aremet can the KP monitoring team consider new authorized zones of extraction." Two groups are fighting for control of locations where theycan levy taxes, including mining sites, UN sources told Rapaport News Tuesday.Though the incidents are violent, the recent fighting is not unusual by thecountry's standards, the source added. "The violence...is unfortunately systemic and is located inthe eastern part of the country, where all the diamond zones are banned forexports by the KP," said Fischler. In 2013, the KP suspended CAR, banning it from exportingrough diamonds after rebels took over the nation's government. After carefullymonitored changes were put in place, portions of CAR were readmitted to the KPin 2016. Only the green zone regions in the west - including Berberati, Boda, Nola,Carnot and Gadzi - may export rough. Some non-governmental organizations, including Global Witness andHuman Rights Watch, have opposed CAR's readmittance, claiming groups are stillsmuggling diamonds out of the country and bypassing human-rights concerns. "The difficulty is that the CAR government has a very weakcapacity to pacify its whole territory," Fischler said. However, he noted, the trouble in the east is not a causefor concern for those areas currently adhering to KP rules, as the governing bodyhas a strict monitoring system in place to ensure traceability of all roughdiamonds mined in the green zones. "While [the violence] is a huge concern...for the CAR government,Bria is very far away from the green zones," said Peter Meeus, an adviser tothe CAR government on the diamond industry. "It's a huge country. Current KPprotocols are very stringent as to make sure [conflict] diamonds cannot bemixed into diamonds from green zones," added Meeus, who formerly headed theAntwerp World Diamond Centre and the Dubai Diamond Exchange. CAR's status in the KP would only come under concern if theviolence occurred in approved areas, said Fischler. "Systemic violence in the green zone would affect their currentstatus," he observed. "Violence that would be reported by the UN observers onthe ground to the monitoring team." Image: Person inspecting rough diamonds. (Shutterstock)