Only 4 out of 13 Diamond Cutting Factories in Use

Minister of mines and energy Obeth Kandjoze said yesterday at the International Diamond Conference held in Windhoek that 2000 workers were employed at the peak but that this number has been reduced to only 700 workers now. 

He attributed this scenario to the downturn the diamond industry is facing worldwide. Other countries in the region, such as South Africa and Botswana, are going through the same problems, Kandjoze said.

Kandjoze said he was talking to the Diamond Board of Namibia with the view of changing sections of the Diamond Act.

Chaim Even Zohar, who moderated one of yesterday's sessions, said despite the downturn in the diamond industry, Namibia was still in a good position as it produces some of the best quality diamonds in the world, which usually fetch a high price.

Namibia is forecast to produce 1,8 million carats of diamonds this year and the current lifespan of diamond production in Namibia is projected to end in 2028, according to figures presented by Zohar yesterday.

Another worry for the industry is the rise in synthetic diamonds.

Zohar noted that synthetic diamonds are becoming part of the diamond supply chain.

"The retailer is there to make money and if it means making more money from man-made diamonds, they will," he said. He said companies that are selling synthetic diamonds are doing well on the market.

Zohar said synthetics are being mixed with natural diamonds.

"Don't fool yourself, there are diamonds that come from down (natural), others are coming from up (man-made)," he said.

Ernest Blom, president of the World Federation of Diamond Bourses said governments in southern Africa must supply enough rough diamonds to factories, if they want them to be sustainable. On the other hand, he said countries with well-established cutting industries such as Israel, India and Belgium have done so because they receive a lot of government support.

He cited South Africa, which employed about 4 500 people when the government started its value adding policy and said the number has now decreased to 300.

Blom said for the value addition policy to work, governments must reduce red tape, supply enough diamonds to the industry and work close with the industry.