The Zimbabwe Consolidated Diamond Company (ZCDC) is targeting a 16 per cent increase in diamond production for 2024, with a goal of reaching 5.7 million carats.
The company plans to nearly double this figure to 10 million carats by 2025. In response to falling global commodity prices, ZCDC is taking steps to adjust its operations and sustain output.
Production Targets and Strategic Plans
ZCDC’s board chairman, Munashe Shava, provided details of the company’s plans, highlighting the need to mitigate the impact of depressed commodity prices on the global market. Speaking to The Chronicle, Shava noted, “We have ramped up production and this year we have set a target of 5.7 million carats, and we see this target nearly doubling to 10 million carats in the coming year.”
ZCDC’s planned production increase is a response to challenging market conditions, including declining diamond prices. In 2023, Zimbabwe produced 4.9 million carats valued at $303 million, and exported 5.6 million carats worth $297 million, according to Kimberley Process data.
Impact on Global Markets and Supply Chains
Zimbabwe’s increased production could have notable implications for the global diamond market, especially as the country ramps up efforts to become a more significant supplier. For jewellers, this increased supply could potentially lead to more competitive pricing in certain markets, depending on demand levels. However, with diamond prices currently subdued, the challenge will be to balance this higher output with sustained demand in both established and emerging markets.
Zimbabwe’s increased diamond output could impact the global market. For jewellers, greater supply may influence pricing, though subdued demand remains a factor in determining market balance.
Political Landscape and International Relations
Earlier this year, Zimbabwe’s president, Emmerson Mnangagwa, was sanctioned by the United States for alleged human rights abuses and involvement in smuggling operations related to gold and diamonds. Despite these accusations, Mnangagwa, 81, has denied all allegations, describing them as “defamatory” and “malicious.”
These sanctions have placed Zimbabwe’s diamond sector under further scrutiny, particularly with regard to the ethical sourcing of diamonds. Jewellers, particularly those focused on ethical sourcing and corporate social responsibility, may need to monitor developments closely, as political and legal factors could influence Zimbabwe’s participation in international markets.
