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08 August 2019 | Story Leonie Bolleurs
Zama Zama
Michelle Goliath played a major role in establishing the first ethically sourced, fair, women-owned, artisanal diamond process.

Michelle Goliath, a PhD student in the Department of Urban and Regional Planning at the UFS, has a passion for helping the most vulnerable people in society who have run out of conventional employment options. 

“My research includes ‘Zamaism’ psychology, a philosophy which looks at the contestation of space and rules, how people navigate the illegal when they are faced with desperate choices,” she explains.  

Michelle has been working with approximately 3 000 diamond mining ‘Zama Zamas’ (criminal miners) over the past three years. Together, they negotiated an agreement with private sector mining and public sector stakeholders to include the Zama Zamas as legal artisan miners in the formal mining economy.

One of the highlights of her career so far was being part of a big first: the complete, ethically sourced, fair, women-owned, artisanal diamond process.

Michelle explains: “A rough stone includes the story of the women who dig it from the earth, legally (under permit), ethically sourced. Instead of being exploited, the same women now sell their diamonds for full value to a legal tender house through a legal buyer or directly to the cutter and polisher. The cutter and polisher also train the women to cut and polish the stones themselves. The women then sell the stones to jewellery gold- and silver-‘smiths’ who artisanally craft this into an engagement ring or ‘Wakanda gem spear’, to be sold in the open market locally and internationally.”

She believes these products will become priceless works of art. “Like Picasso paintings, they are each uniquely produced by hand with a story and Kimberley process certificates,” she adds.

The story of the women

This project had a big impact on Elisa Louw, a former street seller and domestic worker. She tells her story: “I was tired of domestic work and decided to work at the mines as a Zama Zama. I began with nothing and had to borrow tools and learn from others.”

Elisa started working in the mines in 2013; in 2014, she found her first 75-pointer diamond which she sold for R1 500 on the black market. “The black market was good then,” she said.

She later recruited other Zama Zamas to register and obtain legal permits for mining. Elisa mined from 08:00 to 12:00 and from 13:00 to 16:00 she recruited people to start a legal mining co-op. “It was difficult then. People did not understand what it meant to be legalised,” Elisa explains.

But she worked hard and at the end of 2016, the Batho Pele Primary Mining Cooperative was established.

However, it was a hard and difficult journey before they were given their permits early in 2017. The mines took their IDs and issued them with eviction letters. “They called us names – terrorists, robbers, rapists, etc. But in a meeting with the South African Police Service, the Department of Mineral Resources, the Sol Plaatje Municipality, and the international Swedish Housing Company, Michelle spoke for us.”

“She represented the Swedish Housing Company and we thank the Lord for sending her to us. She informed all parties that we did not want to fight, but that we were looking for a licence to work. She helped us to obtain our legal permit to mine.”

“It was such a relief when we received the permit. I could go home and sleep without worrying about the safety of the old people and children who are mining.

“The permit changed my life as a woman. My voice is heard; my words count. I am proud of myself,” says Elisa. 

The two cooperatives they created, Batho Pele Primary Mining Cooperative and the Women in Artisanal Scale Mining, have already signed agreements with Canada and the USA for the export of fair-trade-certified gem products.

Blood, sweat and tears

The journey towards this big achievement took two years of literally blood, sweat, and tears. “Society labels Zama Zamas negatively as terrorists. In a way, you become a Zama at heart once you live with people every day who are fighting for economic inclusion. You fight the illegal diamond trade that exploited people as digging slaves. You fight formal mining, which is a difficult sector to enter as a woman. You literally fight others with stones for territory. You fight political fights, land fights, the system at every level, to seek an existence,” Michelle explains.

She believes the mining industry can be a tough environment. “It is exploitative at many levels. It showcases rare talent, but under duress. At artisanal scale it is even worse. The only future women have, is to lead themselves, to create their own fairer system, to redesign a full value chain that allows broader participation,” states Michelle.

News Archive

Producers to save thousands with routine marketing strategies, says UFS researcher
2014-09-01

 

Photo: en.wikipedia.org

Using derivative markets as a marketing strategy can be complicated for farmers. The producers tend to use high risk strategies which include the selling of the crop on the cash market after harvest; whilst the high market risks require innovative strategies including the use of futures and options as traded on the South African Futures Exchange (SAFEX).

Using these innovative strategies are mostly due to a lack of interest and knowledge of the market. The purpose of the research conducted by Dr Dirk Strydom and Manfred Venter from the Department of Agricultural Economics at the University of the Free State (UFS) is to examine whether the adoption of a basic routine strategy is better than adopting no strategy at all.

The research illustrates that by using a Stochastic Efficiency with Respect to a Function (SERF) and Cumulative Distribution Function (CDF) that the use of five basic routine marketing strategies can be more rewarding. These basic strategies are:
• Put (plant time)
• Twelve-segment pricing
• Three-segment pricing
• Put (pollination)(Critical Moment in production/marketing process), and
• Pricing during pollination phase.

These strategies can be adopted by farmers without an in-depth understanding of the market and market-signals. Farmers can save as much as R1.6 million per year on a 2000ha farm with an average yield.

The results obtained from the research illustrate that each strategy is different for each crop. Very important is that the hedging strategies are better than no hedging strategy at all.

This research can also be applicable to the procurement side of the supply chain.

Maize milling firms use complex procurement strategies to procure their raw materials, or sometimes no strategy at all. In this research, basic routine price hedging strategies were analysed as part of the procurement of white maize over a ten-year period ranging from 2002–2012. Part of the pricing strategies used to procure white maize over the period of ten years were a call and min/max strategy. These strategies were compared to the baseline spot market. The data was obtained from the Johannesburg Stock Exchange’s Agricultural Products Division better known as SAFEX.

The results obtained from the research prove that by using basic routine price-hedging strategies to procure white maize, it is more beneficial to do so than by procuring from the spot market (a difference of more than R100 mil).

Thus, it can be concluded that it is not always necessary to use a complex method of sourcing white maize through SAFEX, to be efficient. By implementing a basic routine price hedging strategy year on year it can be better than procuring from the spot market.

Understanding the Maize Maze by Dr Dirk Strydom and Manfred Venter (pdf) - The Dairy Mail


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