Africa-Press – Namibia. President Netumbo Nandi-Ndaitwah and De Beers Group CEO Al Cook yesterday met at State House for much-anticipated crunch talks, as the country’s diamond industry continues to face unprecedented external macroeconomic pressures and market volatility.
The in-depth discussions focused on how government and De Beers can jointly tackle emerging challenges facing the natural diamonds sector, which includes growing competition from lab-grown diamonds, market uncertainty, deep-level technical difficulties, high energy costs and logistics bottlenecks, amongst others.
The sharp decline in demand and polished-diamond prices, which began in late 2022 and intensified throughout 2023 and 2024, reflects a multidimensional dilemma for Namibia and many other global players within the sector.
The competitive challenge of synthetic diamonds poses a direct threat, but it also exposes, highlights and amplifies the industry’s deep structural flaws.
While the 2008-2009 diamond sector crisis passed with global economic recovery, the current crisis demands both addressing the synthetics issue and implementing comprehensive reforms to tackle the trade’s structural problems, it was highlighted yesterday.
The meeting did not only touch on growing competition from synthetic diamonds, but also on deep structural weaknesses in the industry, the substantial losses throughout the supply chain and manufacturers who have failed to adapt their business models to the changing market realities.
Nandi-Ndaitwah and Cook both agreed that closer collaboration among governments, industry players and stakeholders will be important to safeguard the value, integrity and sustainability of natural diamonds.
She assured the delegation of government’s commitment to the long-standing partnership between Namibia and the De Beers Group, which she said remains vital to the country’s economy.
“We know that we have had a long history of working together in the diamond industry. This meeting today is meant for us to renew that and have strategies on the way forward, considering what is happening in the world’s diamond industry,” she said.
To bolster the country’s struggling diamond sector, Cook told the President that the De Beers Group is in the process of intensifying its global marketing strategy for Namibian diamonds under a new ‘Desert Diamonds’ brand, which he said could mark a crucial turning point for Namibian rough stones.
“We are bringing Namibian diamonds to the United States of America and to countries around the world, and we are telling people the proud story of Namibian diamonds. We are branding them the ‘Desert Diamonds’ to celebrate the natural environment of Namibia,” he said.
Cook explained that the campaign aims to differentiate Namibia’s natural diamonds from synthetic diamonds, which are increasingly present in global markets.
“Natural diamonds and synthetic diamonds are totally different from each other. A natural diamond takes a billion years to create. A synthetic diamond, you can create it in three weeks in a factory in China or India,” he stated.
He also underscored the importance of consumer education, as it will be key to protecting Namibia’s diamond market. The campaign, he said, will educate consumers about the value, rarity and origin of natural diamonds.
“We are telling customers the difference between something rare, unique and beautiful from Namibia, versus something cheap, plentiful and made in a factory, he said.”
Commitment
During the engagement, Nandi-Ndaitwah noted that cooperation in the diamond sector has, over many decades, evolved into a historic relationship grounded in mutual trust, shared value creation and responsible stewardship of Namibia’s natural resources.
The President also highlighted that it is important to reflect on the future of the global diamond industry and to renew strategic approaches aimed at strengthening cooperation as the sector continues to evolve in response to changing market dynamics. Echoing the President’s words, Cook added that once buyers understand the environmental standards and social impact behind Namibia’s diamonds, demand is expected to stabilise.
“When we tell people about Namibia, about the way we work to preserve the wildlife here, the natural environment, and the 15 000 jobs created by the diamond industry, I think people will really want to buy Namibian natural diamonds,” he said. He shared that he had arrived from Botswana, where he held similar engagements, underlining the strategic importance of Southern Africa to the global diamond supply chain. Both parties reaffirmed their unwavering commitment to shared commitment to the objectives of the Luanda Accord, which calls for collective global action by diamond-producing countries and industry partners to promote and protect the long-term competitiveness of natural diamonds. Cook described the meeting with Nandi-Ndaitwah as constructive and focused on strengthening the decades-long partnership between the company and Namibia.
The natural diamond industry, despite its current difficulties, remains a significant global market valued at over US$100 billion.
For More News And Analysis About Namibia Follow Africa-Press
