South Africa’s State Diamond Trader (SDT) is seeking to emphasise the uniqueness and value of natural diamonds as compared to lab developed gems through hosting a diamond show next month and placing emphasis on local cutting and polishing as value addition propositions.
The South African diamond show will be hosted in Cape Town at the beginning of next month. The State Diamond Trader is a statutory entity that is “eligible by law and proclamation to purchase up to 10% of all diamonds from producers” in South Africa.
Under the amended Diamond Act, the State Diamond Trader is also permitted to acquire diamonds from foreign jurisdictions. This comes as at a time when the Kimberley Process and Certification scheme has upped its play against trade in conflict diamonds.
The State Diamond Trader’s show next month also comes against the backdrop of falling diamond prices as some consumers opt for cheaper lab grown alternatives. Through its mandate, the organisation intends to benefit the local jewellery industry through supplying beneficiators with unpolished diamonds
“The legislation has mandated us to acquire and supply unpolished diamonds to local beneficiators and promote to the diamond industry through the necessary research support and development. State Diamond Trader is renowned for its diamonds that are natural diamonds. not laboratory grown diamonds, not tempered diamonds or artificial diamonds,” said Abbey Chikane, the chairman of the board of SDT on Tuesday.
Nosi Mzamo, the CEO of the SDT, said the inaugural diamond show in Cape Town would be a unique platform that will bring together leaders from the mining, cutting and polishing industries. It also creates opportunities for both business to business and business to consumer engagements.
“It is a celebration of our nation's rich diamond heritage, echoing our unwavering commitment to sustainability, ethical sourcing and public social responsibility. The inaugural South African diamond show is designed not only to elevate the status as a global diamond hub, but also to promote sustainability innovation and ethical sources of diamonds,” she said.
Despite its ambitions, the SDT last year reported significant financial underperformance, raising alarms about the health of South Africa’s diamond industry.
Against a backdrop of declining production levels and market prices, the SDT fell short of its budgeted purchases target by R290 million, acquiring rough diamonds valued at only R606m in 2024.
Moreover, its sales performance fared even worse, with a staggering shortfall of R309m, as it managed to achieve a sales value of just R631m, equating to a meagre gross margin of R10m. This gross margin was a dismal R34m below the entity’s budgeted expectations.
In a striking reflection of the market’s downturn, SDT’s annual report showed a dramatic 29% decrease in carats and a staggering 37% drop in value of rough diamonds inspected, which were provided by 35 producers.
This downturn was attributed primarily to a substantial fall in production levels—more than 60%—by the industry’s largest players.
BUSINESS REPORT