Several African economies are feeling the strain from a sharp decline in global diamond prices. According to multiple reliable sources, diamond prices have dropped by more than 25% since 2022, impacting major African producers such as Botswana, Namibia, and Angola.
The main factor behind the prolonged fall in demand and prices is the growing popularity of synthetic diamonds, which are increasingly preferred for jewelry production.
The Democratic Republic of Congo (DRC) has been less affected, as diamond mining plays a relatively minor role in an economy dominated by copper and cobalt.
However, since 2017, national diamond production has halved, reaching just 8 million carats by 2023.
It is worth noting that most of the DRC’s production is intended for industrial use and is therefore only partially impacted by the price decline, which primarily affects gem-quality diamonds.
Among the most affected is Botswana, Africa’s leading diamond producer. The diamond sector constitutes a critical pillar of the country’s economy, accounting for about one-third of tax revenues and 80% of exports.
According to the International Monetary Fund (IMF), Botswana’s economic growth is expected to slow to 1% in 2024, down from 2.7% in 2023, largely due to reduced diamond production.
De Beers, which produces nearly all of Botswana’s diamonds, saw its revenues fall sharply from $6 billion in 2022 to $2.7 billion in 2024.
Namibia ranks second among the hardest-hit countries. Diamonds are the country’s main mineral export, and revenue from rough diamond exports is projected to decline by 33% in 2024, falling to N$11.9 billion (approximately USD 630 million).
In 2023, diamonds contributed 6.3% to Namibia’s GDP. According to the Central Bank of Namibia, this underperformance was a key factor in the slowdown of economic growth to 3.7% in 2024, compared to 4.4% in 2023.
Angola has also faced significant challenges, recording a 3% drop in diamond revenues in 2024. Despite efforts to establish itself as a regional diamond hub and an increase in production, the country has not been immune to market pressures.
According to SODIAM (Angolan National Diamond Trading Company), Angola produced 14 million carats in 2024, up from 9.7 million carats reported by the Kimberley Process in 2023.
However, the decline in average prices led to a $45.2 million reduction in gross turnover compared to the previous year.
Sierra Leone, another key player, has also been affected. Diamonds play an important role in the country’s mining sector.
According to the Extractive Industries Transparency Initiative (EITI) report for 2023, diamonds accounted for 23.2% of mining sector tax contributions, second only to iron ore.
However, the share of diamonds in mining exports fell sharply, from 11% in 2022 to 5.5% in 2023.
In contrast, the Central African Republic and the DRC remain among the least affected, mainly due to the smaller role that diamonds play in their broader mining sectors.
