Namibia, a leading diamond exporter in Africa alongside Angola, Botswana, and South Africa, shipped over $940 million worth of diamonds in 2022.
The global appetite for natural diamonds has recovered from the COVID-19 downturn, with Namibia’s largest marine diamond company, Debmarine, reporting an 83% sales increase in 2022 compared to the previous year.
However, Debmarine CEO Willy Mertens is concerned about the impact of synthetic diamonds on the industry, which could lead to job losses for many Namibians.
Though skilled jewelers can identify the difference between lab-grown and natural diamonds, the distinction is not obvious to most consumers. Modern Mining recently noted that lab-grown diamond jewelry made up more than 10% of the global jewelry market in 2022 for the first time, with projections for continued double-digit growth in the coming years.
Namibia, which extracted 2.1 million carats of diamonds in 2022, is launching a campaign to promote natural diamonds as both environmentally friendly and a better value.
Mertens commented, “In recent years, lab-grown diamonds, or synthetics, have increasingly entered the natural diamond market. They were initially marketed as real diamonds, and we’ve worked hard to distinguish between the two.”
A key challenge in promoting Namibian natural diamonds is addressing their environmental impact. Mertens noted that Debmarine allocates a significant portion of its profits towards environmental rehabilitation and restoring areas of the landscape and seabed affected by mining.
Mertens explained, “Seabed restoration occurs naturally as waves move through the area. We mine specific sections and leave adjacent areas untouched, monitoring the recovery over time. It typically takes three to ten years for the area to fully restore, with about 70% of marine life returning. On land, we use the displaced sand to reinforce sea walls.”
Mertens recently visited Namibian President Nangolo Mbumba to introduce Lupita Nyong’o, De Beers’ global ambassador for natural diamonds, and discuss the challenges facing Namibia’s diamond industry.
President Mbumba expressed concerns about a proposal for the Kimberley Process to require all diamonds to be certified in Antwerp, Belgium. This measure, supported by the Group of Seven (G7) largest economies, aims to prevent Russian diamonds from entering the market.
Mbumba argued that this decision would negatively impact African diamond producers. He stated, “The G7’s recent decision to route all rough and polished diamonds bound for their countries through Belgium poses a significant threat to our economies, particularly those of Angola, Botswana, and Namibia. It increases costs and restricts our trade freedoms.”
He also mentioned that he and the leaders of Angola and Botswana have sent a letter to the G7 requesting that they reconsider this plan.