Angola and Botswana Join Forces to Defend Natural Diamonds

(IDEX Online) - Angola and Botswana are joining forces to strengthen the position of natural diamonds in international markets as they seek to counter growing competition from synthetic stones.

The two African producers, who jointly account for almost 30% of the world's rough diamond production by volume, agreed to deepen cooperation in the diamond sector during a meeting between Angolan President Joao Lourenco and Botswana President Duma Boko in Luanda on September 8.

Lourenco said the diamond industry remains critical to both economies and warned that the emergence of laboratory-produced stones was threatening natural diamonds, particularly because of their lower prices.

"Diamond is only diamond when it is natural. But this industry, which generates substantial revenues for our countries and contributes to their development, is being threatened by the sudden emergence of so-called synthetic diamonds, which are made in laboratories and do not come from nature," Lourenco said.

He added that the two countries would work together to protect and increase the value of their natural diamond production.

"We will work hand in hand to continue enhancing the value of our diamonds, since they provide jobs for our people and our young people and generate revenues that can be invested in social programs, health, education and infrastructure, so that we can develop our countries," he said.

Boko said the way diamonds are traded was one of the sector's main challenges and said Botswana was developing what he called a "robust marketing campaign" for diamonds from producer countries.

"We look forward in this regard to working with Angola, which is also a major diamond producer, and ensuring that this product continues to empower and sustain our economies and support people's lives," Boko said.

The initiative comes as diamond-producing countries face intensifying competition from synthetic stones and a wider debate over how natural diamonds should be differentiated and marketed to consumers.

The two presidents also discussed the future of De Beers. Botswana already owns 15% and Angola has reaffirmed its interest in acquiring a stake in the loss-making miner.

"Since Angola and Botswana are the two largest diamond producers on the continent, and there are not that many diamond producers in the world, I think it is fair that we should also become shareholders in De Beers," Lourenco said.

Anglo American put De Beers up for sale in 2024 as part of its portfolio restructuring and said in July that the sale was advancing. 

Boko said the De Beers negotiations had been lengthy and that details remained confidential.

"When the time is right, when the agreement has been reached, we will make the appropriate announcements. For now, it is enough to say that Angola has been involved," he said.

Pic, courtesy Presidency of the Republic of Angola, shows Botswana President Duma Boko (left) and Angola President Joao Lourenco in Luanda.