Synthetic diamonds to grow in terms of volume not value
Presenters at the Africa Diamond Conference webinar last week assured industry players that synthetic diamonds will continue to grow exponentially, especially in terms of the volume but not so much in terms of value. The webinar was a three-day event that took place on the 14, 21, and 28 October 2020.
Delivering his closing remarks at the webinar, Minister of Mines and Energy Tom Alweendo said the threat of synthetics is surely going to expand in the near future due to legitimisation and other factors.
“The African producing countries have taken note of the increasing growth of the production of the manufacturing and also the distribution of the synthetics,” said Alweendo.
He noted that as leaders of African producing countries, there is a need to address the challenges of synthetic diamonds that have been witnessed in global diamond production, as synthetics have caused disruptions to established diamond pipelines.
Last week’s conference focused on framing the current situation in which diamond markets find themselves and what needs to be done in terms of future market opportunities. Alweendo stated that African producing states have a window of opportunity to make sure the two commodities, both natural diamonds and synthetics, are differentiated. “We will continue to manufacture and distribute natural diamonds as per our resolution in the market that we have taken.”
The mines minister commented that the world is changing rapidly and the players in the diamond market has achieved sustainability and social responsibility. He said, currently, 99% of diamonds produced in Africa meet minimum requirements of the Kimberly Process. He said there is a strong need to produce areas of a conducive environment and usage of appropriate marketing messages platforms. This, he said, will help players in the diamond market to close the gap. Alweendo outlined there is also a need to tell the story of the natural diamonds and the positive impact it has to boost consumer confidence, adding that time is of the essence to millennials when they make purchasing decisions. He concluded that Covid-19 has forced players to think differently and innovatively, such as using digital platforms to reach out to a wider consumer base.