The agreement, announced by Minister of Mines Louis Kabamba, includes plans for a cutting and jewellery-manufacturing facility, a digital trading platform connecting producers with international buyers, and programmes focused on technology transfer and skills development.
Mining Analyst Peter Major described the deal as a positive development for a country that remains Africa’s largest diamond producer but has historically captured limited value from its vast output.
Major noted that the DRC produces between 30 million and 40 million carats of diamonds annually, although much of the production consists of lower-grade stones. Unlike countries such as Lesotho, which produces smaller volumes of higher-value diamonds, the DRC’s output has traditionally been exported for processing elsewhere, particularly to India.
According to Major, Indian diamond cutters built a competitive industry around processing lower-value stones, allowing diamonds from the DRC to reach mass-market jewellery retailers worldwide.
The agreement comes at a challenging time for the global diamond industry. Major said natural diamond prices have fallen by between 30% and 40% in recent years as the sector faces growing competition from lab-grown diamonds and changing consumer preferences.
Against that backdrop, Major argued that efforts to create additional value within the DRC could help strengthen the sector. Greater transparency could also assist in reducing illicit trading, which has long affected the country’s diamond industry.
The deal establishes a 50-50 partnership between the DRC government and ADEX, with processing, marketing and sales operations expected to be conducted from within the country rather than relying solely on the export of rough diamonds.
Major said Switzerland is a logical partner given the country’s long-standing role in global commodity trading. While Belgium, Israel and India have traditionally dominated various segments of the diamond trade, Swiss companies have extensive experience in structuring partnerships and resource-sector ventures across Africa.
One of the key advantages for ADEX, Major suggested, could be access to a large volume of diamond production. A formalised trading platform could also encourage more producers to sell through official channels, helping to reduce informal and illegal trade.
Major added that any successful effort to establish diamond-cutting skills in the DRC should be welcomed, although competing with established centres such as India, which employs hundreds of thousands of skilled diamond cutters, will require significant investment and long-term commitment.
Despite difficult market conditions, Major said the agreement could support efforts to formalise the sector, improve value addition and increase the economic benefits generated from the DRC’s diamond resources.
–ChannelAfrica–
