Zimbabwe Targets 5 Million Carats Diamond Output Despite Global Price Decline and Market Pressures
Zimbabwe Consolidated Diamond Company says it plans to raise diamond production to 5 million carats this year, despite continued weakness in global diamond prices and rising competition from synthetic stones.
The target represents an increase of about 1.2 million carats compared with production levels in 2025, even as the global diamond industry faces sustained pressure from geopolitical tensions, shifting demand patterns, and growing supply of lab-grown alternatives.
According to CEO Douglas Zimbango, who addressed lawmakers in Mutare, Zimbabwe’s diamond sector has experienced a sharper decline than the global market average due to a combination of external and domestic challenges.
He noted that international rough diamond prices have fallen by between 26% and 35%, while Zimbabwe’s diamond prices have dropped more steeply, from a peak of around $79 per carat to approximately $22 per carat.
He attributed the decline to factors including product mix, market conditions, synthetic diamond competition, and structural inefficiencies in the sales framework.
Zimbango added that prices for certain rough diamond categories are currently ranging between $22 and $34 per carat, compared with averages of around $100 per carat for higher-quality stones in other producing regions.
Declining Sales and Revenue Pressure
Zimbabwe sold 784,764 carats of diamonds in the first quarter of 2026, an 11% decrease compared with the same period in the previous year.
However, the value of those sales fell more sharply, dropping by about 29% to approximately $21.6 million.
Despite the decline, the company reports cumulative production of 26.5 million carats since operations began in 2016, underscoring its long-term contribution to national output.
The Zimbabwe Consolidated Diamond Company is owned through the country’s sovereign wealth structure, the Mutapa Investment Fund, which oversees several state-linked mining assets.
Industry Restructuring and Efficiency Drive
To improve performance, the Mutapa Investment Fund has recently reorganized its mining portfolio, including the creation of new entities and restructuring of Kuvimba Mining House Ltd.
The changes are intended to enhance operational efficiency and strengthen oversight across state-owned mining operations.
Zimbabwe’s diamond sector continues to operate in a challenging global environment marked by weak pricing, increased competition from synthetic diamonds, and evolving demand dynamics in key consumer markets.
Despite these conditions, authorities maintain that production growth remains a strategic priority, even as revenue pressures persist.
