Imperative For Africa To Up Domestic Stakes In Diamond Industry- Dr M’zée Fula Ngenge

By Ajong Mbapndah L

While African states retain legal ownership of natural resources, effective control is constrained by foreign corporate dominance, infrastructural deficits, governance failures and inequitable international trade frameworks, says Dr M'zée Fula Ngenge, Chairman of the African Diamond Council.

In an exclusive interview on the African Daimond industry, Dr M'zée Fula Ngenge says strengthening local capacity, enhancing governance, and renegotiating investment terms are imperative for African nations to assert greater sovereignty over their resource wealth.

Africa dominates global diamond production, accounting for over 61% by volume and more than half by value, with Botswana, Angola, South Africa and the Democratic Republic of Congo (DRC) as key producers, says Dr M'zée Fula Ngenge.

Collectively, Africa’s diamond reserves underpin the global industry, driving economic development and influencing market dynamics, Dr M'zée Fula affirms.

“Ultimately, the developmental outcomes of diamond exploitation hinge on effective governance, transparency and economic diversification. Without these, diamonds risk exacerbating inequality, social tensions and institutional fragility, underscoring the duality of natural resources as both a potential catalyst for progress and a driver of conflict,” says Dr M'zée Fula Ngenge in the interview which offers broad insights into the potentials, challenges, dynamics and perspectives of the African Diamond industry

How will you sum up the state of the diamond sector in Africa today from worth to potential and impact on the global scene?

Africa dominates global diamond production, accounting for over 61% by volume and more than half by value, with Botswana, Angola, South Africa and the Democratic Republic of Congo (DRC) as key producers. Botswana, the world’s leading diamond producer by value, derives approximately 32% of its GDP from the sector.

However, informal mining persists, exacerbating issues such as smuggling, revenue loss and poor labor conditions. While the Kimberley Process (KP) has curbed conflict diamond trade, challenges remain in regions like the DRC and Central African Republic.

Many African nations, heavily reliant on diamond revenues, remain vulnerable to market volatility, compounded by governance deficits and infrastructural limitations.

Efforts to enhance domestic value addition through cutting, polishing, and jewelry manufacturing are gaining momentum, alongside initiatives to improve transparency, ethical sourcing, and environmental sustainability. New discoveries in Zimbabwe and Sierra Leone offer growth potential, albeit amid political complexities.

Africa’s diamonds, renowned for their quality, particularly from Botswana, Namibia and Lesotho, have historically shaped global supply chains and fueled the rise of major industry players like De Beers, Alrosa and Rio Tinto. The sector has also driven economic development, funding infrastructure, education, healthcare and cultural initiatives.

The 2003 Kimberley Process Certification Scheme emerged in response to Africa’s challenges with conflict diamonds, establishing a global standard for ethical trade. Despite persistent issues like artisanal mining and governance gaps, ongoing formalization and sustainability efforts are fostering a more resilient industry. Africa’s diamonds remain central to global markets, economies, and cultural narratives, underscoring the continent’s enduring influence on the world stage.

Looking at the geographical spread, may we know some of the countries or sub regions with good reserves of diamond?

Africa, a cornerstone of the global diamond industry, hosts some of the world's most prolific and geographically diverse diamond reserves, spanning Southern, Central, West and East Africa. While Russia leads global diamond production, Africa's deposits are unparalleled in both quality and economic significance.

Botswana, home to the Jwaneng and Orapa mines, exemplifies this, with Debswana, which is a De Beers-government partnership that drives high-quality output and substantial GDP contributions. The Democratic Republic of Congo (DRC) dominates production volume, though its artisanal and industrial sectors are often conflict-prone. Angola, a frontier for diamond mining, is modernizing its sector to harness untapped potential. South Africa, historically pivotal, hosts major mines like Venetia and Cullinan, while Namibia is renowned for its high-quality offshore diamonds.

Lesotho produces some of the world’s most coveted diamonds, favored by elite jewelers, while the Central African Republic (CAR), despite past instability, has significant reserves and was recently reinstated into the Kimberley Process. Sierra Leone, known for gems like the “Star of Sierra Leone", boasts extensive alluvial deposits, particularly in the Kono District. Liberia and Guinea are emerging players, with Guinea’s Forest Region yielding high-quality gemstones. Tanzania’s Williamson Diamond Mine highlights its potential for further discoveries and Zimbabwe, despite governance challenges, remains a key producer, particularly from the Marange fields.

Collectively, Africa’s diamond reserves underpin the global industry, driving economic development and influencing market dynamics. The continent’s rich, yet unevenly exploited resources, coupled with ongoing efforts to formalize and modernize the sector, ensure its continued centrality in the diamond trade.

On ownership and control how much of these resources are under effective African control?

In most African states, natural resources are constitutionally vested in the government, held in trust for the populace. However, effective control is frequently compromised by systemic inefficiencies and external influences. While legal ownership resides with African governments, the extraction, processing and commercialization of these resources are predominantly managed by foreign corporations, which possess the requisite capital, technology and expertise often lacking domestically.

This dynamic entrenches a dependency on external entities, exacerbated by corrupt or inept local officials who prioritize personal enrichment over national development.

Contractual agreements between governments and multinational corporations are frequently asymmetrical, disproportionately favoring the latter and resulting in minimal revenue retention for African states.

This is compounded by inadequate local infrastructure and technical capacity, necessitating partnerships with foreign entities that further erode sovereign control. Political instability, corruption and weak governance exacerbate these challenges, with resource-rich regions sometimes falling under the control of insurgent groups or being subjected to illicit exploitation. Economic fragility often forces governments into unfavorable concessions with foreign investors, further diminishing control.

International trade agreements and economic partnerships also play a pivotal role, as African nations are often compelled to liberalize markets and resource access to attract foreign investment. While regional initiatives like the African Continental Free Trade Area (AfCFTA) and organizations such as the African Union (AU) aim to enhance collective bargaining power, their efficacy hinges on greater regional cohesion.

Interesting case studies such as Nigeria, Africa’s largest oil producer, illustrate these dynamics. Africa’s top oil producer cedes significant control of its sector to multinationals like Shell and ExxonMobil, with the Nigerian National Petroleum Corporation (NNPC) often relegated to a junior partner role. Similarly, Angola, another major oil producer, faces analogous challenges. In the Democratic Republic of Congo (DRC), critical minerals such as cobalt and coltan are extensively exploited by foreign entities, with illegal mining diverting wealth away from local populations.

In conclusion, while African states retain legal ownership of natural resources, effective control is constrained by foreign corporate dominance, infrastructural deficits, governance failures and inequitable international trade frameworks. Strengthening local capacity, enhancing governance, and renegotiating investment terms are imperative for African nations to assert greater sovereignty over their resource wealth.

In terms of contribution to socio-economic developments and progress across the continent, would you say diamonds have been a curse or blessing?

The socio-economic impact of diamonds in Africa is a multifaceted issue, contingent on governance, institutional frameworks and global market dynamics. Diamonds can catalyze development by generating government revenue through taxes, royalties and exports, which, if managed transparently, can fund public services, infrastructure and social programs.

Botswana exemplifies this potential, leveraging diamond wealth to transition from extreme poverty to middle-income status through strategic investments in education, healthcare and infrastructure. Similarly, diamonds can stimulate job creation and attract foreign investment, fostering economic diversification and technological transfer.

However, diamonds also pose significant risks. Over-reliance on diamond revenues exposes economies to volatile global prices, undermining stability and diversification efforts. Resource-driven currency appreciation can erode competitiveness in non-extractive sectors, while weak governance often and unfortunately leads to rent-seeking, elite capture and institutional decay.

In countries like Sierra Leone and the Democratic Republic of Congo (DRC), diamonds have fueled conflict, human rights abuses and environmental degradation, perpetuating cycles of poverty and instability. The Kimberley Process, while mitigating some trade in conflict diamonds, has not fully addressed these systemic challenges.
Ultimately, the developmental outcomes of diamond exploitation hinge on effective governance, transparency and economic diversification.

Without these, diamonds risk exacerbating inequality, social tensions and institutional fragility, underscoring the duality of natural resources as both a potential catalyst for progress and a driver of conflict.

At the level of the African Diamond Council that you lead, what is been done to help ensure that Africans reap maximum dividends from the sector?

Since its establishment in 1999, the African Diamond Council (ADC) has been instrumental in advancing the interests of African diamond-producing nations, ensuring the continent maximizes the benefits of its diamond resources.

The ADC promotes best practices in the diamond industry, emphasizing transparency, accountability and good governance to ensure diamond revenues contribute to socio economic development. It also supports and constructively critiques the Kimberley Process Certification Scheme (KPCS) in its efforts to enhance the global reputation and market access of African diamonds.

The ADC provides capacity-building initiatives, including training programs for government officials, industry stakeholders and local communities on diamond valuation, mining techniques and regulatory compliance.

It offers technical assistance to develop and implement autonomous, effective diamond sector policies without the interference or subjugation of obsessive international industry bodies.

The ADC also champions small-scale and artisanal miners by facilitating access to finance, technology, and markets, while advocating for fair trade practices to secure equitable pricing for African producers.

The ADC’s efforts have spurred local beneficiation, job creation, and value addition within the diamond supply chain, while its advocacy for transparency and governance has reduced corruption and increased revenues in African diamond producing nations. By fostering economic diversification, market access and sustainable practices, the ADC is driving transformative change in Africa’s diamond industry, balancing uncompromising advocacy for African interests with tangible socio-economic benefits for the continent.

You recently authored an op-ed questioning the rationale of the Kimberly process, what issues do you have with it and how it impacts the Diamond industry in Africa?

The Kimberley Process (KP), while not ever a subject of personal contention, remains an institution I critique unapologetically for its systemic inefficacy. My critiques are consistently rooted in principle, and I maintain a steadfast commitment to ensuring that professional disagreements, particularly within the diamond industry, remain constructive and devoid of ad hominem attacks. It is imperative to recognize that the African Diamond Council (ADC) stands resolutely against the subjugation of African diamond producing nations to foreign dominance, a principle that underpins my engagement with the KP and its supporting stakeholders.

Recent exchanges have only reinforced my conviction that the KP’s defenders often resort to deflection, unsubstantiated assertions and personal attacks rather than addressing the substantive flaws of the certification scheme. Such tactics not only undermine the credibility of those employing them but also exacerbate the KP’s institutional shortcomings.

The global diamond industry has, regrettably, witnessed a troubling shift from principled debate to character assassination, a trend that distracts from meaningful discourse and perpetuates a culture of avoidance rather than accountability.

I shall always welcome and encourage professional disagreements as a catalyst for progress, yet I remain acutely aware that hypersensitivity or indifference to principled critiques often stems from a defensive posture aimed at preserving the KP’s status quo at all costs.

To reiterate, my critiques of the KP are meticulously grounded in principle and remain unequivocally valid, underscoring the urgent need for systemic reform. The ADC’s focus must remain unwavering, especially if there is to be a favorable result or reward that advances the interests of the African diamond industry, while ensuring that its producing nations are neither marginalized nor exploited. This mission demands clarity, integrity, courage and an unyielding commitment to progress, even in the face of entrenched resistance.

Besides the African Diamond Council, do you see any other moves that African countries are taking individually or collectively to have a stronger say in the diamond industry?

Africa, as a preeminent global producer of diamonds, has undertaken a multifaceted and concerted approach, both individually and collectively, to consolidate its strategic position and amplify its influence within the international diamond industry. These initiatives are designed to maximize the socioeconomic benefits derived from Africa’s natural resources and to assert a more authoritative voice in shaping global diamond trade dynamics.

Central to these efforts is the active participation of African diamond-producing nations in the Kimberley Process (KP), an international certification scheme established to curtail the trade in conflict diamonds.

By ensuring that their diamonds are ethically sourced and traded, African nations make attempts to enhance their credibility and secure greater market access. However, to transcend their current role as participants and assume leadership within the KP, African countries must courageously and independently move to adopt more proactive and innovative strategies.

The African Diamond Manufacturers Association (ADMA) represents a pivotal institutional mechanism aimed at optimizing the diamond supply chain. By fostering an enabling environment for value addition, ADMA seeks to bolster the entire ecosystem of diamond production and trade.

Several African nations have enacted policies to promote local beneficiation, thereby shifting from the export of raw diamonds to the domestic processing and cutting of stones. Botswana, for instance, has forged a strategic partnership with De Beers to establish cutting and polishing facilities, generating employment and augmenting the value of its diamond exports.

Similarly, Namibia has implemented policies to retain a greater share of the diamond value chain within its borders. State-owned enterprises such as Debswana in Botswana and Endiama in Angola have been strengthened to ensure greater national control over diamond resources, often through joint ventures with international firms while retaining significant equity and decision making authority.

The African Diamond Producers Association (ADPA) has endeavored to prioritize local beneficiation and advocate for equitable trade practices. Despite its potential, ADPA has faced credibility challenges, largely due to compromises on its founding principles for short-term gains. Nonetheless, its mandate rThe African Diamond Council (ADC) has emerged as a key advocate for transparency and accountability in the diamond trade.

By supporting the implementation of anti-corruption measures and adherence to international standards, the ADC has encouraged the adoption of frameworks such as the Extractive Industries Transparency Initiative (EITI). This ensures that diamond revenues are meticulously accounted for and channeled toward public welfare.

Furthermore, African nations are investing in critical infrastructure and advanced technologies to enhance the efficiency and sustainability of diamond mining operations. Improvements in transportation networks, the establishment of regional diamond trading hubs, and the adoption of environmentally responsible mining practices are integral to these efforts remains critical in advancing the collective interests of African diamond-producing nations.

At the regional level, collaborative initiatives such as those spearheaded by the Southern African Development Community (SADC) have been instrumental in harmonizing diamond policies and empowering member states to assert greater control over their resources.

Concurrently, diamond dependent economies are pursuing economic diversification to mitigate over-reliance on diamond exports. Investments in sectors such as tourism, agriculture, and manufacturing are being prioritized to build more resilient and diversified economic foundations.

On the international stage, African diamond-producing nations are engaging more assertively with global markets and institutions. Participation in international diamond conferences, trade exhibitions and negotiations with major buyers underscores their commitment to securing fair trade practices and equitable market access.

Additionally, there is a growing focus on formalizing and supporting artisanal and small-scale mining (ASM), which constitutes a significant portion of diamond production. By providing training, market access, and fair pricing mechanisms, African nations are empowering these miners to contribute more effectively to the industry’s growth.

A critical dimension of Africa’s strategy is the advocacy for fair pricing and improved market access. This involves challenging the entrenched dominance of major diamond corporations and ensuring that African producers receive a proportionate share of the profits generated by their resources. Equally important is the emphasis on sustainable and ethical mining practices, which encompass environmental stewardship, fair labor standards and community development initiatives in mining regions.

Through these comprehensive and strategic measures, African nations are not only fortifying their position within the global diamond industry but also ensuring that the wealth generated by their natural resources is more equitably distributed, thereby fostering inclusive and sustainable development.

Any policy recommendations that you want to share on how the sector could fare better from local actors to companies, governments and potential investors?

To catalyze the transformation of the African diamond sector into a more equitable, sustainable and economically robust industry, a multifaceted policy framework must be adopted. This framework should prioritize local beneficiation, enhance governance, attract investment and ensure sustainable development.

I shall take a moment to outline a series of targeted recommendations designed to achieve these objectives. Governments should consider mandating a reasonable proportion of rough diamonds undergo local processing prior to export. This policy would not only generate employment, but also augment the intrinsic value of diamonds within the producing nations.

Concurrently, fiscal incentives such as tax breaks and subsidies should be extended to enterprises that establish cutting and polishing facilities domestically. Investment in specialized education and training programs is imperative to cultivate a skilled workforce, encompassing gemologists, jewelers and engineers.

To backtrack, robust regulatory frameworks should be developed and strictly enforced to mitigate corruption, uphold fair trade practices and safeguard the rights of workers and local communities. The establishment of independent oversight bodies is essential to monitor compliance and promote transparency within the industry.

To attract both foreign and domestic investment, it is crucial to create a stable and predictable investment climate. This can be achieved through the implementation of clear legal frameworks, protection of property rights, and streamlined bureaucratic processes.

Additionally, fiscal incentives such as tax holidays, grants and other financial mechanisms should be considered to stimulate investment in the diamond sector. Leveraging private sector expertise and capital through PPPs can significantly enhance infrastructure development and mining operations. These collaborations should be structured to ensure mutual benefits and long-term sustainability.

Stringent environmental regulations must be enforced to minimize the ecological footprint of diamond mining and promote sustainable practices. Mining companies should be mandated to contribute to local community development through Corporate Social Responsibility (CSR) initiatives, focusing on infrastructure, education, and healthcare. Fair labor practices must be upheld to ensure that workers are compensated equitably and operate in safe conditions.

Strengthening regional alliances through organizations like the African Diamond Producers Association (ADPA) is vital. ADPA can facilitate collective bargaining, share best practices and work harder to develop cohesive regional strategies. Harmonizing policies and regulations across African diamond-producing nations will create a more unified and competitive regional market.

To reduce dependency on diamond exports, economic diversification into sectors such as agriculture, tourism and manufacturing should be encouraged. Developing downstream industries, particularly jewelry manufacturing and retail, will enable African nations to capture more value from the diamond supply chain.

Establishing local diamond exchanges will facilitate fair pricing and provide a platform for local producers to sell their diamonds. Aggressive global marketing campaigns should be launched to promote African diamonds, emphasizing their ethical sourcing and unique qualities.

Engaging in negotiations with major diamond buyers and international organizations will help secure better trade deals and fair pricing. Policies must be developed to formalize the ASM sector, providing legal recognition and support to small scale miners. Facilitating access to finance through micro-finance institutions, grants or low-interest loans will enhance the sector's productivity. Training and capacity-building programs should be implemented to improve the skills and efficiency of artisanal miners.

Investment in advanced mining technologies is essential to improve efficiency, reduce environmental impact, and increase diamond recovery rates. Digital platforms should be utilized to enhance transparency and traceability in the diamond supply chain, ensuring ethical sourcing and trading practices.

Mining codes and regulations must be regularly updated to reflect current industry standards and best practices. Ensuring that artisanal miners have a voice in policy-making processes and protecting their rights is equally important.

Effective dispute resolution mechanisms should be established to address conflicts between stakeholders in the diamond industry, fostering a more collaborative and harmonious sector.

It is safe to conclude that the implementation of these policy recommendations will have success in positioning African nations to create a more equitable, sustainable and profitable diamond sector. This will not only benefit local actors, companies and governments, but also attract and retain investment, ensuring long-term prosperity for the continent.

What impact do you think the diamond sector will have in shaping events and developments across the continent in the medium- and long-term future?

Rather than employing to what I think, allow me to share what I actually fully cognizant of. The global diamond sector will continue to exert a profound and multifaceted influence on the African continent, shaping its economic, social, political and environmental trajectories in the medium to long term.

As a critical revenue source for numerous African nations, natural diamond exports will remain instrumental in financing infrastructure development, social services, and economic diversification initiatives. The industry, spanning mining, processing, and retail, will sustain employment opportunities, both directly and indirectly, thereby mitigating unemployment and elevating living standards.

Concurrently, the sector will attract foreign direct investment, particularly in mining and associated infrastructure, fostering economic growth and facilitating technological transfer.
Corporate social responsibility (CSR) initiatives by diamond mining companies will persist in driving improvements in healthcare, education and infrastructure within local communities.

Moreover, the global emphasis on ethical sourcing and fair labor practices will invariably elevate working conditions across the African diamond industry, enhancing the well-being of workers and their families. Given the historical association of diamonds with conflict in certain regions, sustained efforts to ensure ethical sourcing and transparency, such as through the Kimberley Process (KP), are imperative to advancing peace and stability.

This global demand for accountability will also pressure governments to strengthen governance frameworks, reduce corruption and foster more transparent and effective regulatory structures, not only in Africa but also in other diamond-producing regions, such as the Russian Federation.

The imperative to meet international standards and remain competitive in the global market will catalyze greater regional cooperation among African diamond-producing nations. This collaboration will yield more cohesive and impactful regional policies, particularly if the Kimberley Process (KP) evolves to address contemporary challenges and avoid obsolescence. Recent trends toward resource nationalism, wherein African states seek greater control over their diamond resources through renegotiated contracts or increased state ownership, reflect a strategic shift toward leveraging natural resources for sustainable development. As far as I am concerned, this trajectory is both, necessary and commendable.

Environmental sustainability is increasingly shaping the diamond industry, with African mining operations adopting more eco-friendly practices to mitigate ecological degradation and promote sustainable development. The sector must also confront the challenges posed by climate change, including water scarcity and extreme weather events, which will necessitate innovations in mining technologies and practices.

The integration of advanced technologies, such as automated mining equipment, blockchain and data analytics for market intelligence, will effectively enhance operational efficiency, transparency and industry accountability.

The implementation of certificates of origin, the adoption of public blockchain-based traceability solution that is compatible with private blockchain, the utilization of nanotechnology and the issuance of Titles of Ownership, for instance, would effectively revitalize the credibility of the Kimberley Process while addressing longstanding concerns about supply chain integrity. It is important to know that the diamond journey begins at a mining site in a producing country, rather than on a shelf inside the boutique of a luxury jewelry designer.

The digital transformation of the diamond industry, exemplified by platforms like the African International Diamond Exchange (AIDEX) and the proliferation of digital marketing, will expand African producers’ access to global markets. However, the sector must navigate the inherent volatility of diamond prices, which poses risks to diamond-dependent economies. Economic diversification remains a critical strategy to mitigate these vulnerabilities and ensure resilience.

Changing consumer preferences, particularly the growing demand for ethically sourced and sustainable diamonds, will profoundly influence the African diamond sector. African producers must adapt to these trends by emphasizing the unique qualities and ethical provenance of their diamonds to maintain competitiveness.

The rise of synthetic diamonds further underscores the need for differentiation, as African producers must articulate the inherent value and cultural significance of natural diamonds. Strategic partnerships with forward-thinking international organizations, ethical corporations and governments will be essential to bolstering Africa’s diamond industry.

These collaborations will provide access to capital, cutting-edge technologies, and global markets. Equally important is the negotiation of favorable trade agreements with major diamond-consuming nations to ensure equitable market access and pricing.
Beyond its economic dimensions, the diamond sector holds cultural significance, symbolizing wealth and prestige while contributing to the cultural heritage and identity of African nations.

Effective branding and marketing strategies are crucial to enhancing the global reputation of African diamonds and establishing a distinct identity in the international market. African filmmakers and cultural influencers have a unique opportunity to showcase African diamonds and luxury brands, leveraging media and product placement to elevate their global profile. The same holds true for African media outlets that broadcast globally.

In the end, the global diamond sector will remain a pivotal force in Africa’s development, provided that stakeholders prioritize ethical practices, sustainability, innovation and uncontaminated strategic collaboration.

By addressing the imperatives that I have outlined, the industry will not only sustain its economic contributions, but will convincingly reinforce its role as a catalyst for positive transformation across the continent

*Culled from April Issue of PAV