The recent G7 sanctions on Russian diamonds have impacted the global diamond market, prompting diamond-rich African nations to ramp up production to fill the gap left by the ban.
Earlier this year, the G7, a coalition of wealthy nations including the US, Canada, the UK, Germany, France, Italy, Japan, and the European Union, imposed a ban on rough diamonds mined in Russia.
While these sanctions are designed to penalize Russia, they also carry implications for the stability of the global diamond market.
“Africa is the dominant producer collectively,” said M’Zee Fula Ngenge, head of the African Diamond Council (ADC), in an interview with DW. Before the sanctions, Russia held the position as the world’s leading diamond producer.
With the new restrictions in place, Botswana has now ascended to the number one spot. “What’s good for one is bad for the other. We are not anti-Russia, but the sanctions on Russia elevate Botswana in the global diamond industry,” Fula Ngenge added.
The sanctions could potentially benefit other African countries as well, giving them the opportunity to step up and become top players in the diamond production sector. “Most of these diamond-consuming nations are leaning on us now,” said Fula Ngenge, indicating a significant shift in the global diamond supply chain.
Despite these opportunities, some African diamond producers feel that the G7 should have consulted them before implementing the ban on Russian diamonds. Of the G7 nations, only Canada is a diamond-producing country.
“They totally left us out of the conversation when we feel we are the world leaders in diamond production. They should have come to us first,” Fula Ngenge expressed.
Additionally, the G7 sanctions mandate that African countries send their diamonds to Antwerp, Belgium, for certification. Antwerp is a central hub in the global diamond industry, but this requirement has disrupted the supply chain, according to Botswana’s leadership.
President Mokgweetsi Masisi of Botswana is scheduled to meet with German Chancellor Olaf Scholz on June 21 to discuss the certification process and seek a more favorable arrangement.
