Decline in diamond prices hits Southern Africa: Bo...

Decline in diamond prices hits Southern Africa: Botswana, Namibia reeling, mixed fortunes for Zimbabwe

Diamonds Are A Womans Best Friend - strapstory

Witness Runodada - ZimNow Reporter

Global diamond prices have plunged by nearly 74% since 2020, with natural gem prices falling roughly 26% into early 2025 as lab-grown alternatives gain traction.

Luxury diamond prices have slumped sharply in recent years, with natural gem values falling by 6% in the first half of 2024 alone amid increased competition from lab-grown stones.

This downturn is hitting hard in Southern Africa—the world’s top natural diamond region.

In Botswana, Debswana’s rough diamond sales plunged 52%, from US$3.19 billion in the first nine months of 2023 to US$1.53 billion in the same period of 2024.

Diamonds account for 30–40% of Botswana’s national revenue and around 75% of foreign exchange earnings, so the slump has alarmed government leaders and threatens their economic stability.

In Namibia—known for high-value, gem-quality stones—revenue has also dropped sharply due to falling global demand and swelling inventories.

Against this bleak panorama, Zimbabwe’s situation is mixed. Strong demand for Marange stones triggered diamond export earnings to surge from US$3.7m in March to US$33.5m in April—a 912% spike—but still below 2023 highs. Yet, low-value Marange carats (under US$50 per carat) illustrate volume over value concerns.

Meanwhile, the Zimbabwe Consolidated Diamond Company (ZCDC) has reportedly begun laying off workers, citing operational restructuring and declining profitability in the face of global price pressures. Sources within the company say dozens of contract and support staff have already been affected, with more job cuts expected if the market downturn persists.

Murowa Diamond Mine, owned by RioZim, the timing is challenging. With 19 million tons of ore graded at only 0.9 carats per ton, the mine faces narrow profit margins.

Throughput halved—down 47% year-on-year—and operations ceased in January due to US$4.5 million in unpaid electricity bills. Hundreds of workers have now gone five months without pay, staging sit-ins that cripple production.

https://www.zimbabwenow.co.zw/articles/15545/tensions-escalate-at-murowa-diamonds

A similar downturn hit Murowa in 2015, recording a US$573,000 loss due to plummeting prices.

Analysts warn that Zimbabwe must adapt quickly. Sustaining large-scale mines like Murowa and Marange requires either higher per-carat prices or a shift toward lower-cost, higher-value output.

With synthetic diamonds now 90% cheaper than mined stones, Zimbabwe must explore modernization, diversify into artisanal and gem sectors, or deepen reforms in its fields to remain competitive—and resilient—amid the global diamond downturn.