Zimbabwe's rough diamonds under threat due to synthetics, geo-political tension and market collusion- MIF
THE Zimbabwe Consolidated Diamond Company (ZCDC) says rough diamonds are under threat as the global market prices have fallen significantly over the past two years.
Shaped by geological constraints, a global diamond market and an evil, and operational headwinds that demand urgent strategic attention, ZCDC shareholder Mutapa Investment Fund (MIF) has revealed that new strategies are being worked out to improve on product quality and sales.
"We need to acknowledge the seismic destruction that laboratory-grown diamonds, otherwise known as synthetic diamonds, have inflicted on the natural diamond industry globally.
"This is not a passing trend, but a structural market shift that ZCDC, and indeed every natural diamond producer in the world, now has to plan around, MIF deputy chief lnvestment Officer Ernest Denhere told the Public Accounts Portfolio Committee (PAC) this Friday.
The Committee was on.a fact-finding mission regarding operations of entities under MIF.
Denhere revealed that at their peak, synthetics had captured approximately 15% of the rough diamond market.
Mass production in India and China has exerted significant downward pressure on prices for synthetic stones.
"The proliferation of affordable synthetics fundamentally resets consumer price expectations, not only for synthetics, but for natural diamonds as well," added Denhere.
The depty chief lnvestment Officer said natural diamond prices consequently declined by approximately 40% over the two years to 2025.
"Even as we look to our neighbors, significant producers like their bears, probably the titan of the natural diamond world, cut production by 20%. Most recently, I've been reading of another diamond mine in South Africa, with a 150-80-year history that is going into liquidation.
"Closer to home, diamond miners locally and in the region have been scaling now or suspending operations either in care maintenance or, indeed, in corporate rescue to navigate this turbulent environment.."
Against this global backdrop, Denhere highlighted that Zimbabwe's specific diamond sector challenges were more acute.
"In 2024, Zimbabwe's diamond extraction grew by 8% in volume, yet the total value of the exports declined by 46% year-on-year to about $164 million.
"Our average price per carat fell to just $31, the lowest among major global producers and less than half of the $62 per carat achieved in 2023.
"In the first half of 2025, export volumes fell a further 60% to 2.7 million carats compared to the same period in 2024. These figures confirm a sovereign truth."
He stated Zimbabwe risked becoming a high-volume, low-value diamond producer at precisely the moment that global market is rewarding quality over quantity. This is not a trajectory we can sustain. The market realities are unavoidable
Buttressing Denhere's report, ZCDC Chief executive officer Douglas Zimbango said, "The international market remained in a downturn, specifically the unique small rough diamonds which will typically command a 2026 price of between US22-$34 per carat, compared to other producers who average US$100 for their better quality rough diamonds.
"Internationally, rough diamond prices have gone down by 26-35%, but Zimbabwe goods have experienced a worse downturn (72%from peak $79 to $22 per carat) because of product profile ( 70% boart, 16% gem, and 14 % near gem)." Zimbango said during his presentation to the Parliamentary Committee.