By Fanuel Chinowaita
Mutare, 1 August 2025 – The Chiadzwa Community Share Ownership Trust (CCSOT) has demanded the immediate reversal of the recent retrenchment of local workers by the Zimbabwe Consolidated Diamond Company (ZCDC), describing the move as unilateral, anti-community, and lacking proper consultation with key stakeholders.
In a letter dated July 24 and addressed to the ZCDC Chief Executive Officer, Dr. Hardwork Mukwada, CEO of CCSOT, expressed deep concerns over the involuntary termination of workers from the host communities of Marange and Zimunya in Mutare District. The Trust requested an urgent meeting with ZCDC and warned that failure to engage would force them to escalate the matter to higher authorities.
“As an entity duly established by government to spearhead community empowerment and development, we strongly believe that this retrenchment should have been subjected to meaningful and inclusive boardroom dialogue among the tripartite pillars of the diamond industry—community, government, and business,” reads part of the letter.
The Trust accused ZCDC of disregarding the role of the local communities who, they said, gave the company its social license to operate and contributed immensely to the national and international recognition of Zimbabwe’s diamond industry.
CCSOT called for the retrenchments to be frozen and the affected workers to be recalled immediately pending the outcome of the proposed engagement. “The host community interprets the move as being skewed against objective community interests,” the Trust added.
However, ZCDC responded in a letter dated July 30, stating that the retrenchment process was preceded by consultations with multiple stakeholders, including traditional leaders, government officials, parliamentarians, and party leadership.
According to ZCDC, the process began with briefings to the Resident Minister, local MPs, traditional chiefs Marange and Zimunya, and community headmen and councillors. The company said meetings were held in June at local homesteads and administrative centers in Mutare District, including with the District Development Coordinator and ZANU PF provincial leadership.
ZCDC said the layoffs were part of a global staff rationalization exercise due to the prevailing crisis in the international diamond market. “Several companies worldwide had to either shut down or retrench, and ZCDC opted for the latter to preserve some jobs,” said ZCDC CEO Dr. D. Zimbango.
The company said it had followed all necessary procedures and had obtained the required approvals from the Ministry of Public Service, Labour and Social Welfare. ZCDC also claimed to have hired financial and mental health experts to prepare affected employees for the transition.
Despite this, CCSOT insists that the manner in which the layoffs were implemented violated the spirit of community development and trust. The Trust warned that it would soon raise additional concerns regarding ZCDC’s operations, which it said were increasingly inconsistent with community expectations.
The dispute has now attracted national attention, with copies of the correspondence sent to high-profile figures, including Mines Minister Winston Chitando, Mutapa Investment Fund CEO Dr. John Mangudya, Industry Minister Nqobizitha Ndlovu, provincial officials, traditional leaders, and Members of Parliament representing Mutare’s constituencies.
As tensions simmer, it remains to be seen whether ZCDC and the community leaders can reach common ground through dialogue—or if the fallout will further damage relations between the diamond giant and the people of Marange and Zimunya.