1. SUMMARY OF THE CASE AGAINST LIVETOUCH INVESTMENTS (PVT) LTD AND REGULATORY AUTHORITIES (ENVIRONMENTAL MANAGEMENT AGENCY AND THE MUNICIPALITY OF REDCLIFF)
1.1 INTRODUCTION AND BACKGROUND INFORMATION
ACT-SA carried out an investigation and produced a report titled “Money over Life: The Case of a Chinese Investor (Livetouch Investments (Pvt) Ltd) t/as Diamond Cement) in the town of Redcliff in the Midlands Province of Zimbabwe”. The report gives information about dust emissions alleged to be emanating from the Livetouch’s Diamond Cement manufacturing plant. This Tracker monitors how regulatory authorities responded against air pollution by the company, after a complaint had been relayed to them by ACT-SA.
Livetouch Investments (Pvt) Ltd is one among several examples of Foreign Direct Investments (FDIs) established in Zimbabwe following the country’s “Open for Business” mantra. The company, led by Chinese directors Dongning Wang and Feng Wang (as reflected in their letterheads), manufactures “Diamond Cement” at their facility located at Number 2713, Old Steelworks Road, Redcliff.
While Livetouch contributes to the cement industry, grave concerns were raised regarding allegations of air pollution through dust emissions affecting residents of Stone Clare residential suburb and surrounding areas. Dust emissions, especially from a cement manufacturing plant are a cause for grave concern since in March 2024, Kwekwe General Hospital recorded a spike in cases of silicosis, which is an incurable lung disease caused by inhalation of dust containing crystalline silica, found in stone, soil and sand.[1] In 2023, several lives were lost in Kwekwe, in areas around Kwekwe and other areas suspected to be close close where Livetouch is situated.[2] Regardless of the catastrophic effects of dust emissions, these emissions had continued at Livetouch with impunity and with relevant regulatory authorities also folding their arms.
In addition, Livetouch is alleged have been engaged in other activities directly competing with local artisans. These activities include:
- Manufacturing furniture
- Moulding bricks and pavers; and
- Crushing and selling concrete stones
Engaging in these activities mostly undertaken by locals is deemed to be in direct violation of Zimbabwean laws and regulations governing foreign investment and fair competition. In addition, this lays bare ill-thought licencing decisions considering Section 32 (1) [3] of the Zimbabwe Investment Development Act [Chapter 14:37] which encourages relevant authorities to assess the impact of foreign investments on existing industries before issuance of these licences.
1.2 CONCERNS AGAINST LIVETOUCH INVESTMENTS
Whilst the importance of FDI is fully acknowledged and respected in terms of employment creation and contributions to the national fiscus, these vital contributions should not obfuscate flagrant violations of human rights of the local communities through environmental degradation, and violation of national laws and policy frameworks.
An investigation by the Anti-Corruption Trust of Southern Africa (ACT-SA) made startling findings that depict Livetouch as a glaring example of a foreign investor whose business activities allegedly pose a huge threat to the lives of the local people.
The company emitted and continues to emit cement dust into residential areas, particularly the Stone Clare community and this continued with impunity until the intervention of the Environmental Management Agency (EMA) when ACT-SA raised an alarm on the 22nd of September 2023. Prior to ACT-SA’s intervention, local communities had approached regulatory authorities such as EMA and the Municipality of Redcliff for assistance with no success.
The public outcry and inaction by regulatory authorities prompted ACT-SA to approach EMA, the Municipality of Redcliff as well as Livetouch to address the community concerns they were ignoring and neglecting. The public uproar was justified considering that cement dust causes lung function impairment, chronic obstructive lung disease, restrictive lung disease, pneumoconiosis and carcinoma of the lungs, stomach and colon.[4] Other studies have shown that cement dust may enter into the systemic circulation and thereby essentially reaching all the organs of the body and thereby affecting the different tissues including heart, liver, spleen, bone, muscles and hairs and ultimately affecting their micro-structure and physiological performance. [5] Failure to control this type of pollution means that Livetouch and regulatory authorities do not value human lives. More worrying is the fact that Kwekwe General Hospital has been recording an increase in cases of silicosis, which is an incurable lung disease caused by inhalation of dust found in stone, soil and sand.[6]
1.3 HIGHLIGHTS OF MAJOR FINDINGS
An investigation by ACT-SA and a parallel investigation by EMA made the following key findings were made:
- Dust, including cement dust emissions were confirmed: These emissions were confirmed by EMA, and Livetouch itself, thereby putting Livetouch in violation of Section 73 of the Constitution of Zimbabwe, 2013 as well as the Environmental Management Act [Chapter 20: 27)], among other laws and regulations .
- Reluctance to address the emission: A report by EMA shows that Livetouch refused and/or neglected to implement orders from EMA and its own Work Plan. The Box below shows action taken by EMA after Livetouch’s refusal to implement an order issued by EMA
Box 1: Action taken by EMA extracted from its Report
| 4.0 Action taken After the inspections around the plant, the areas which were not compliant with the emission regulations were identified and measures to try and correct the situation were taken. 4.1 29 September 2023 1. 1 ticket was issued to Livetouch Investments T/A Diamond Cement for causing air pollution through emmision of fugitive dust from operations of cement manufacturing (No EP 0028157). 2. An order was also served (ORD 0020774) with the following conditions: (a) by 13 October 2023, Livetouch Investments would have stopped all the dust emmissions in and around the plant. (b) On or before 05 October 2023, Livetouch would have submitted an action plan to the Agency on long term dust supression measures. 4.2 12 February 2024 A ticket worth 5000 USD was issued for failure to comply with the previously served order to put in place measures to supress dust emissions and to submit to the Agency an action plan to supress dust.An order for a fresh action plan which would be implemented was served with the conditions that weekly progress reports should be submitted to the Agency with details of progress made thus far regarding implementation of the workable submitted action plan. |
The above shows convincingly the lack of will by Livetouch to take corrective measures to remedy the situation.
- Livetouch is non-compliant with national laws, policy frameworks and other business best practices: There is lack of compliance with national laws such as the Constitution of Zimbabwe, 2013, the Zimbabwe Investment Development Act (Chapter 14:37), and the Environmental Management Act [Chapter 20: 27)], among other laws and regulations.
- Lack of monitoring and sanctions against Livetouch for wrong-doing: It is clear that Livetouch enjoyed impunity from scrutiny and accountability. This was allegedly attributed to protection that the company gets from some political elites. In addition, Livetouch is involved in a vehicle scandal with the local authority. EMA only intervened after the ACT-SA investigation and threat to sue which it also acknowledged in the following extract
Box 2: Extract from EMA’s Report (Refer to Annex 3)
| On 22 September 2023, a certain Anti-Corruption Trust of Southern Africa (ACT-Southern Africa) wrote to EMA on behalf of residents of Grasslands Estate Extension High Density Residential community, complaining about dust pollution from Diamond Cement (Livetouch Investments) as causing health hazards and costing the community in cleaning expenses. The Trust requested the following: That EMA conducts a thorough investigation into the dust emission sources, machinery and processes within the cement manufacturing plant to identify the root causes of the excessive dust output. Diamond Cement should implement effective dust control measures, including the installation of appropriate filtration systems, regular maintenance of equipment, and the use of proven dust suppression techniques. EMA and Diamond Cement conduct regular air monitoring within the vicinity of the plant and provide the community with transparent and timely reports on the results to ensure accountability. Establish a dedicated communication channel between the company and the affected residents to keep them informed about the progress in resolving the issue and to address any concerns or questions they may have. Diamond cement should compensate the affected residents for the damages incurred due to the dust emissions, including the costs associated with cleaning, maintenance, and medical expenses resulting from respiratory illnesses. Failure to meet these demands of which legal action would be taken. |
- Impact of Livetouch activities on the local business people: The investigation revealed that Livetouch was not only engaged in cement manufacturing but was also manufacturing furniture, moulding bricks and pavers and crushing quarry stones in direct competition with the local people. This again lays bare the ill-thought licencing decisions by the Redcliff Municipality and the Zimbabwe Investments and Development Agency (ZIDA) considering Section 32 (1) [7] of the Zimbabwe Investment Development Act [Chapter 14:37] which encourages relevant authorities to assess the impact of foreign investments on existing industries before issuance of these licences.
1.4 4.LIVETOUCH’S WILL TO ADDRESS THE SITUATION
As testified by EMA, Livetouch has not been working hard to stop dust emissions with the urgency that the matter deserves considering the effects of the emissions on human lives. The following extract from a report produced by EMA is more illuminating on Livetouch’s indifference attitude.
Box 3: Action taken by EMA extracted from its Report
| 4.0 Action taken After the inspections around the plant, the areas which were not compliant with the emission regulations were identified and measures to try and correct the situation were taken. 4.1 29 September 2023 1. 1 ticket was issued to Livetouch Investments T/A Diamond Cement for causing air pollution through emmision of fugitive dust from operations of cement manufacturing (No EP 0028157). 2. An order was also served (ORD 0020774) with the following conditions: (a) by 13 October 2023, Livetouch Investments would have stopped all the dust emmissions in and around the plant. (b) On or before 05 October 2023, Livetouch would have submitted an action plan to the Agency on long term dust supression measures. 4.2 12 February 2024 A ticket worth 5000 USD was issued for failure to comply with the previously served order to put in place measures to supress dust emissions and to submit to the Agency an action plan to supress dust.An order for a fresh action plan which would be implemented was served with the conditions that weekily progress reports should be submitted to the Agency with details of progress made thus far regarding implementation of the workable submitted action plan. |
1.5 RECOMMENDATIONS
In keeping with the above, the above the following recommendations are made:
- The Zimbabwe Investment and Development Agency (ZIDA) and other relevant authorities should investigate Livetouch to assess whether or not its activities are within its mandate as stipulated in licence/s that it was given upon registration;
- Livetouch should stop operations until dust control measures are completed or its operations are relocated to a safe place, away from residential areas,
- The impact of control measures proposed by Livetouch as shown in the Table below should be investigated by EMA and appropriate measures should be adopted that are relevant to the situation at hand. For instance, the impact of planting trees that takes many years to grow is another cause for concern.
Table 1: Livetouch Action Plan
| Proposed Control Measures | Estimated Completion Date |
| Plant trees along the boundary wall | 15 October 2023 |
| Erect a raw materials shade | 15 November 2023 |
| Pavement of roads around the plant | 30 November 2023 |
| Increase the stack heights | 30 November 2023 |
- Livetouch should be investigated and stopped from engaging in business activities that are in direct competition with the local people.
- Regulatory authorities such as EMA and the Municipality of Redcliff should consistently monitor and enforce national laws and policies without fear or favour or prejudice.
- The Municipality of Redcliff should be accountable for ill-thought decisions that resulted in the Diamond Cement Plant being situated in a residential area.
- In the event that Livetouch refuses and/or neglects to stop operations and relocate to a safe place or implement well-proven and effective control measures, residents and other stakeholders affected are encouraged to launch a class action to seek the redress that they require.
2. IMPORTANT REPORTS AND DOCUMENTS
| Abridged version: “Money over Life: The Case of a Chinese Investor (Livetouch Investments (Pvt) Ltd) t/as Diamond Cement) in the town of Redcliff in the Midlands Province of Zimbabwe” | Download | |
| Full version: “Money over Life: The Case of a Chinese Investor (Livetouch Investments (Pvt) Ltd) t/as Diamond Cement) in the town of Redcliff in the Midlands Province of Zimbabwe” | Download | |
| KWEKWE has been recording an increase in cases of silicosis, an incurable lung disease caused by inhalation of dust containing crystalline silica, an abundant natural material found in stone, soil and sand. | Read More | |
| ACT-SA Letter to Livetouch, EMA and the local authority | Download | |
| EMA Report | Download |
3. PROGRESS TOWARDS ADDRESSING THE ISSUES
[1] Kwekwe records spike in silicosis infections – The Southern Eye (newsday.co.zw), Mar. 18, 2024, Kwekwe records spike in silicosis infections – The Southern Eye (newsday.co.zw)
[2] The Chronicle – Breaking news, 28 November 2023, The Chronicle – Breaking news
[3] S32 of the Act sets out the following considerations before the issuance of an investment licence – “In considering an application for an investment licence the Board shall have regard to—
(e) the impact the proposed investment is likely to have on the environment and, where necessary, the measures proposed to deal with any adverse environmental consequences; and
(f) the impact the investment is likely to have on existing industries in the economy;
[4] Health hazards of cement dust – PubMed (nih.gov), https://pubmed.ncbi.nlm.nih.gov/15448758/#:~:text=Cement%20industry%20is%20involved%20in,the%20lungs%2C%20stomach%20and%20colon.
[5] Ibid
[6] Kwekwe records spike in silicosis infections – The Southern Eye (newsday.co.zw), Mar. 18, 2024, https://www.newsday.co.zw/southerneye/local/article/200024522/kwekwe-records-spike-in-silicosis-infections#google_vignette
[7] S32 of the Act sets out the following considerations before the issuance of an investment licence – “In considering an application for an investment licence the Board shall have regard to—
(e) the impact the proposed investment is likely to have on the environment and, where necessary, the measures proposed to deal with any adverse environmental consequences; and
(f) the impact the investment is likely to have on existing industries in the economy;