How Tanzanite minerals are smuggled from Tanzania

MAASAI herdsmen–famously known for their fearsome reputations as warriors and cattle-rustlers have been revealed to be at the edge of shipping smuggled Tanzanite to Kenya where it is then transported to India and China.

This is done because India, Kenya and China are having very weak policy on custom duty on export and import of Tanzanite which is only mined  in the Mererani Hills of Manyara Region in Northern Tanzania.

India, the only South Asian country mining Diamond adopted a hefty custom, excise and tax on export of the mineral but rifted her nationals to dominate the Tanzanite business.

Findings obtained by ‘Daily News’ shows the Nilote-speaking have turned best options for illegal tanzanite merchants following Tanzania’s decision to burn export of rough Tanzanite four years ago.

Tanzanite trader at Mirerani who spoke to ‘Daily News’ said “It has not been easy, but the herdsmen are helping to secretly smuggle the rough stones outside the country using different modalities including unsuspected oil containers.”

Sources said the herdsmen are only hired by traders to help ship Tanzanite across the border illegally due to tight-security at Namanga, Julius Nyerere International Airport (JNIA) and Kilimanjaro International Airport (KIA) borders.

“Arrangements are made shortly after the consignment is ready between traders in Arusha and Nairobi,” he informed. This has resulted in multi-million dollars worth black money being earned by Tanzanite merchants involved in such scam.

Tanzania Mineral Audit Agency Chief Executive Officer Eng Dominic Rwekaza reveal that the TMAA in collaboration with Tanzania Airport Authority (TAA), Tanzania Revenue Authority (TRA) and the Police Force managed to intercept smuggled minerals worth US$1.51million and Tshs34.67million last year.

A 2012, TMAA annual report shows authorities also managed to  apprehend minerals  worth Tshs 13 billion.

Assistant Commissioner for Minerals, in the Ministry of Energy and Minerals Eng Benjamin Mchwampaka said the ministry was not aware of the new technique but assured Tanzania and Kenya had agreed to impose royalties on exported minerals.

Kenya’s Mining Act, 2016 published last May impose royalty rates ranging from one percent to 12 percent of the gross sales value of minerals.

But Tanzanite traders in Arusha still believe the new legislation hasn’t helped. “Bad, the country has lost millions of potential returns because of the trade being done illegitimately,” Mr George Obago, a reputable trader told ‘Daily News.’

Just a year after Tanzania burned export of rough Tanzanite, the country recorded export revenue of US$38million down from Kenya and India’s $100 and $400 million respectively.

“Impossible, not under my government,” irritated President Mr John Magufuli said in reaction to the report challenging security agencies to heighten security and bring to task those behind illegal trade.

Securities in Kenya had not napped Tanzanite smugglers trying to export Tanzanite to Jaipur, India – International Airport (JIA) some 690minutes by flight –where over 90 percent of Tanzanite is cut and polished.

India’s Minister of State responsible for Commerce and Industry Ms Nirmala Sitharaman was noncommittal when contacted to clarify on her government measures to end illegal tanzanite trades.

However it is learnt that Indian businessmen who mainly ‘dictate’ the industry dispatch their middlemen dealers either along Mtendeni road in Arusha or Kijiweni in Mirerani to collect the blue gemstones.

“They (Indian businessmen) can spend up to three-month waiting for good market in Arusha,” Mr Godlisten Nyange, a tanzanite dealer based in Arusha claimed “A large number of Indian traders living and doing business in Jaipur and Mumbai are involved in this smuggling trade.”

In the process, Maasai herdsmen use the Maasai Mara and Serengeti border routes to export the rare stone.

Leaders said smuggling has thus made difficult for Tanzania to have statistics of the mineral which is only found in Tanzania.

Maasai Traditional Leader Mr Benedict Olumolo immediately said the claim are just an alert and as the leader will communicate with the communities not to be used in the illegal trade.

Kenya’s Narok County Commissioner Moffat Kangi announced a ban on Tanzanite and its trade in Loita last month partly to complement Tanzania’s plan to end the largely-done under carpet business.

Observers described the Kenyan decision as a mere political statement. “The business is just allowed for those with valid license, yet Tanzanite is still traded in the black market,” a gemstone and jewelry trader based in Nairobi told Daily News.

It is estimated, Tanzanite worth Tshs 35.855 billion equivalent to US$16.3 million is exported through illegal routes denying the government tax each year.

Unscrupulous traders and miners transfer the rare gems from Mirerani using private cars to Maasai Mara where the mineral is packed and transported to Kenya by herdsmen.

Commissioner for minerals in the Ministry Mr Paul Masanja, announced the state would tighten noose on mineral smugglers by building a fence to regulate entry into a 10sq km area.

To date—the directive had targeted private cars and inspection remains very optional. The only available police post does not inspect vehicle and people to detect smuggled Tanzanite.