Tanzania has banned Tanzanite exports that lack a Certificate of Origin, in a bid to tighten the noose on smugglers and to boost the country’s returns from the gemstone.

The Minister for Energy and Minerals William Ngeleja, said that since Mererani Hills in northern Tanzania is the only known region in the world where the deposits subsist, the Tanzanite will now bear its own “Certificate of Origin.”

The gemstone, which is 1,000 times rarer than diamonds nets just $100 million out of the annual trade volume of $500 million. 

 The government hopes the Certificate of Origin among other measures will boost earnings from Tanzanite to $250 million this year.

Those who deal in the mineral are also expected to have a registered company and operating license. 

All consignments for the gemstone must also be exported through official channels and must have proper documentation which include an export permit, export receipt, company invoice, custom clearance and freight forwarding certificate.  

Mr Ngeleja says the government in collaboration with gemstone dealers are holding a four-day fair cum conference dubbed, “Arusha International Gemstone, Jewellery and Minerals Fair,” from April 26, to create awareness. 

“The aim is to curb all illegal trade in minerals,” Mr Ngeleja said. ‘’Plans are underway to promote the Certificate of Origin in major markets like the US, Germany, South Africa, Italy and India.”

(Read: Tanzanite ban: Smuggling in full swing)

Deputy Commissioner for Minerals, Ally Samaje said the Ministry of Energy and Minerals will be the sole institution to issue the Tanzanite Certificate of Origin.

“The certificate can be obtained either from the Dar es Salaam or Arusha mineral offices,” Mr Samaje said.

Tanzania Mineral Dealers Association chairman, Sammy Mollel, said the certification will bolster tax revenue and improve data collection on the blue-violet stone. 

The state also declared Mererani a controlled area in a bid to restrict access and curb illegal trade of Tanzanite. Tanzania is richly endowed with natural resources such as minerals, gas, forests and gold.

Key minerals

Minerals, particularly gold and gemstones as well as natural gas, are the most significant of them all.   

At an average growth rate of 12.4 per cent in the past decade, mining is one of the fastest growing sectors of Tanzania’s economy.

Unfortunately, it accounts for a meagre 2.3 per cent of the GDP but contributes a significant one-third of foreign exchange earnings to the country.  

Mining provides direct employment to about 14,000 workers in Tanzania, Africa’s third-largest gold producer after South Africa and Ghana.

Minerals account for about 42 per cent of Tanzania’s exports, the bulk of which are mainly gold, diamonds and tanzanite. 

According to data released by the Bank of Tanzania, the total value of exports of goods and services in the year ending October 2010 were worth $5.5 billion, which is a 15.7 per cent rise, with gold alone making about $1.5 billion.  

However, a huge chunk of this money especially in mining industry doesn’t return to the country.