Angola emerged as Africa’s second largest diamond producer by value in 2024, with a total diamond output worth $1.41-billion, marking a significant shift in the global diamond landscape that has been driven by Angola’s strategic production increases and Botswana’s intentional supply reductions, says diamond industry analyst Paul Zimnisky.

Angola’s diamond sector has experienced substantial transformation, driven by post-civil war reforms, increased foreign investment and enhanced infrastructure.

The Catoca and Luele mines – owned and operated by the Sociedade Mineira de Catoca Joint Venture, which is the largest diamond producer in Africa after Debswana – has played a central role by contributing over 75% of Angola’s diamond output.

In addition, Angola’s emphasis on high-quality alluvial diamonds has also contributed to its success, with select diamonds achieving premium prices in international markets, he says.

While Debswana – a joint venture (JV) between the Botswana government and De Beers – has deliberately reduced production, citing weakened consumer demand for natural diamonds, Angola has maintained momentum with increased volumes from the Catoca and Luele mines driving its value growth by producing 12-million carats in 2024, according to global rough diamond regulator the Kimberley Process.

“Angola’s relative rise has more to do with a strategic curtailing of supply to meet demand by the Debswana JV, while Endiama has done the opposite. I think Botswana’s approach is more sustainable than Angola’s,” explains Zimnisky.

Angola’s production is a study in contrasts with its kimberlite operations delivering high-volume, medium-quality goods, while its alluvial deposits produce some of the most exceptional diamonds in terms of size, quality and colours, he says.

Diamonds such as the 170 ct pink Lulo Rose – which was mined in Angola – illustrate Angola’s luxury potential.

Outlining the preceding factors that have shaped Angola’s presence in the diamonds industry today, Zimnisky points out that Angola was hindered as a consequence of its civil war, which ran from 1975 to 2002, leaving the country one of the least explored and most prospective African jurisdictions for diamonds.

The country has prioritised diamond industry development over the past decade, leveraging its resource management capabilities, also demonstrated in its robust oil and gas industry, says Zimnisky.

He emphasises that with diamonds, mine operators have to produce carats and drive end demand for the product, which makes diamond mining notably different from other extractive industries.

Competition Abounds, Outlook

Amid lab-grown competition, the diamonds industry faces a critical juncture that requires some form of leveraging cooperation amongst primary entities to avoid flooding the market while simultaneously sharing financial obligations to drive flagging desire for natural diamonds, says Zimnisky.

“With lab-grown diamonds, you can essentially produce whatever you want, whenever you want. The supply fundamentals are completely different with natural diamonds, so they need to be valued as such, and this needs to be properly conveyed to the consumer,” he adds.

Considering diamond major De Beers is still for sale, Zimnisky also highlights that Angola's interest in the company is part of a larger strategy to secure a stake in the global diamond market.

Angola, through Endiama, has submitted a bid for a 20% to 30% stake in De Beers, aiming to build a pan-African ownership model with other countries such as Botswana, Namibia and South Africa.

“A lot stands on who the new owner [of De Beers] is and how committed they are to driving longer-term growth in demand for natural diamonds,” says Zimnisky.

The competition for De Beers is not just about Angola and Botswana, it is a broader move towards African economic independence with both countries looking to increase their value by implementing strategies such as investing in cutting and polishing facilities and creating high-skill jobs that rival other such enterprises globally.

“Angola and Botswana will undoubtedly remain the primary diamond players in Africa, given their hosting of large resources; however, I hope they place more emphasis on conveying their story to global diamond consumers going forward, especially as it pertains to the people that the industry positively impacts.

“If done properly, I think this would really distinguish the natural diamond product from lab-grown alternatives and make it significantly more appealing, especially with younger consumers,” concludes Zimnisky.