Dr M'zée Fula Ngenge, Chairman of the African Diamond Council (ADC), is a Mining Engineer and highly respected Senior Strategy Advisor who celebrated 40 years in the global diamond industry this year. He acts as a professional liaison within the international diamond trade and is well-positioned to influence, both, the public and private sectors.In 1986, Dr M‘zee was instrumental in introducing the Ideal & Super-Ideal Cut diamonds to the global diamond supply chain. These highly sought-after Hearts & Arrow diamonds have rapidly increased in popularity since the 1990s. He also served as Chief Administrative Developer in 2000 and became Project Launch Team Coordinator in 2001 for Kimberley Process (KP), a diamond certification scheme to eradicate blood/conflict diamonds.
In 2001, Dr M'zée was a principal trustee and decisive proponent to establish Dubai as a major diamond and jewellery manufacturing centre, laying the foundation for the successful launch of Dubai Multi Commodities Centre (DMCC) in 2002.
In early 2017, M'zée drafted a bold and assertive revenue recovery proposal that urged the Republic of Angola to implement "Operation Transparency; and in late 2018 an internationally lauded campaign that was effective in combatting illegal immigration, unlawful exploration of diamonds as well as environmental crimes related to the plundering of natural resources, such as diamond smuggling.
At the beginning of 2019, Dr M'zée was assigned as Chairman and Managing Director of the African International Diamond Exchange (AIDEX), Africa's most transparent rough diamond supplier for four diamond exchanges in Antwerp, the Diamond Exchange District in Ramat Gan, the world's largest diamond bourse in Mumbai as well as the largest Free Zone in the United Arab Emirates. At the end of 2019, he was entrusted as Chairman of the Board of Trustees for the African Diamond Trust Fund (ADTF), a fully integrated, autonomous financial depository and vault operator for ethically mined rough diamonds originating in Africa.
Here, in an exclusive interview with Rough&Polished, Dr M'zée Fula Ngenge speaks on crucial matters concerning Africa’s diamond industry and his perception of his country’s future. He also expresses his views on the Kimberley Process (KP), conflict diamonds, child labour and so on...
Some excerpts:
Your presence at the 2023 Intersessional Meeting of the Kimberley Process (KP) in Zimbabwe, and your views would be of interest to our readers. Can you brief us on any conclusions that were arrived at on the various issues lingering before it over the years?
The 2023 Intersessional Meeting of the Kimberley Process (KP) was predominately a four-day assembly and occasion to welcome the incoming and newly-appointed President of the World Diamond Council (WDC).
The African Diamond Council (ADC) wasted no time in voluntarily stepping forward to express our best wishes to the first woman president of the WDC, given that Women’s Empowerment continues to remain at the pinnacle of ADC’s organizational priorities.
I understand that the agreed, outlined and overall intention of the KP Intersessional Meeting is to chronicle resolutions that were made at the previous Plenary meeting in an effort to form and provide a valuable progress report as well as useful industry updates, however, the Intersessional fell a bit short of expectations from an ADC perspective.
The constructive dialogue surrounding how smuggled African diamonds could potentially be returned to the countries of origin is another lingering topic that African diamond-producing countries were hoping to take aim at, embark on and take responsibility for. Attendees and participants are incessantly keen to hear about positive steps that have been taken on pending key issues that the industry has been or is currently faced with. While discussions may have been viewed as productive, open and robust in the eyes of those who savoured the spotlight, the reality of overt exclusion and inconspicuous indifference are incredibly apparent until now.
To a great degree, African diamond-producing nations are intent on discovering just how essential the presumed spirit of candidness, trust and respect among participants will be in efforts to revise the KP definition of the “blood/conflict” diamond.
The level of genuine interest at the KP meetings is certainly deteriorating, compared to recent years and the level of enthusiasm has also diminished, which can be best witnessed through the number of early departures.
What could be the reason/s, despite many attempts, for no 'understanding' being reached for a final definition of 'conflict/blood diamonds’?
The principal reason can be attributed to unavailing and ongoing discussions that simply ramble around the periphery of sensitive KP or industry subject matter without ever credibly tackling the real issues.
What’s more is that our nebulous global diamond trade is and has been guilty of misguided self-regulation for quite some time, which of course, leads to fervid and unpalatable conflicts of interest in many instances.
At the same time, this sheltered approach of self-monitoring tends to aid presiding coteries that have been designated and depended upon to devise, manipulate and sustain a slanted and incompatible policy that rewards the loyalists currently backing their sectarian activities.
In most cases, whenever there is some sort of a critique from the African Diamond Council (ADC) resulting from Kimberley Process (KP) inertia, it is certainly brought on by the KP’s priority mismanagement as well as the lack of resolve to update and improve the existing, distorted and narrow definition of a ‘blood/ conflict’ diamond.
It is a disregarded denotation that fails to incorporate or take aim at ‘child or forced labour’ in diamond mining areas, specifically in Africa. The intrinsic interpretation is also exclusive of omnipresent
‘environmental desecration’ is typically caused by imprudent diamond mining activities.
African diamond-producing countries have consistently witnessed the creation of support mechanisms anchored by international diamond consortiums as well as industry bodies that are culpable of exerting unmatched levels of collective staunchness to imprudently lobby and aggressively promote strategies as well as ideologies that fail to profoundly advance Africa, Africans and the policies of African diamond producing countries.
One recent example would be the voluntary system or set of industry provisions that are currently being promulgated in a rather despairing manner since the most recent update in September 2021.
I am often held accountable to provide answers and having to respond to quite a few challenging questions originating in the minds of many of our African Heads of State and Mining Ministers within our diamond-producing countries. These rightful and well-deserved inquiries are accompanied by a healthy and essential desire for them to fully understand why an assertive level of energy is not being applied to revise the KP blood/conflict diamond definition.
In recent years, the KP has demonstrated consistency in repetitively shooting itself in the foot as a result of failing to incorporate recognized human rights abuses that exist or possess the potential to occur in the global diamond trade, specifically in Africa. It is becoming more obvious that the tasks which matter most to the 59 KP participants that represent 85 countries are strategically being put at the mercy of undertakings which matter least to African diamond-producing countries.
In view of the fact that ‘consensus’ clearly imparts industry organizations with a status quo bias or presents a situation that tends to prevail when the initial opinions are intolerant to an adequate degree, then the justification of an impasse or deadlock is inclined to discard certain scenarios where the majority opinion is in error while also amplifying the probability of correct decisions.
Woefully, there are executives within some of the world’s major diamond centres who imprecisely believe that they are in total control of the entire industry without any exception at all. These industry administrators are the very ones who are not only determined but the ones who are guilty of pushing a unified narrative that Africa cannot and should not be relevant in providing solutions for the global diamond industry.
It has become more obvious that whenever the African diamond industry is being discussed in detail within intimate circles of the global diamond trade, it is being examined in the context of an exclusive supplier of rough or unpolished diamonds.
If the global diamond industry feels that they are failing to come into possession of what they actually want within the African continent, then those exchanges of views are often amplified to highlight the setbacks that our continental diamond industry is often faced with. In other words, foreign or non-African industry bodies continue to prove that they are not only reluctant to make any adjustments to their existing and exploitive paradigms but they are also unwilling.
Some of our African diamond-producing countries are persistently being coaxed and pressured by hoarding foreign nations into occupying an uncommon position of heedlessness or single-mindedness through weak representation at the public sector level. The capacity of those same administrators or nations to remain unified is constantly under attack through deliberate efforts that are tactically designed to inhibit those nations or officials from actually unifying and collaborating.
There is a handful of African leaders who are beginning to demonstrate an unforeseen level of courage to delegate as well as control the destiny of some of our most important diamond-producing nations and those are the ones who receive unconditional support from the ADC. These far-sighted African leaders have proven that they understand the gravity of securing a lasting legacy and those are the leaders that the African diamond industry will be most indebted to or grateful for.
Industry members hope to see the 'Kimberley Process Secretariat Task Force' (KPSTF) chaired by WDC representative Wim Soons bring some concrete decisions at the session in Gaborone, Botswana next year. Your thoughts?
The African diamond industry is hopeful that the performance of the KPS Task Force will exceed the expectations of the entire global diamond industry. We must all keep in mind that the appointed Chair of the Task Force is not only an industry professional to whom I extend a great deal of reverence, but I also view him as a respected and highly-qualified contributor to the global diamond sector.
In any event, it is important to point out that the Task Force is being led by a WDC Board Member, who is also the Head of Public Affairs for a public/ private corporation in Belgium that officially represents the Antwerp diamond sector.
In the last couple of months, the KPSTF Chair was also appointed as Secretary of a jewellery federation that holds the responsibility to promote jewellery as a key sector of the European industry. With that being said, African diamond-producing nations do understand the root of his outlined mission, interest and authority.
The ADC member countries are well aware that there will be a concentrated focus to improve the visibility of the sector among EU institutions and stakeholders, whereas Africa does not and has never appeared to be a prime concern or hold any consideration of importance, especially when it comes to incorporating policies that advance or positively position the African diamond industry.
ADC members are also conscious of the fact that the same jewellery federation is keen to secure the Government of Botswana as a partner for their rebranded “Facets” event later this October, which was originally introduced in 2020 as Antwerp’s mislabeled “African Diamond Conference”.
Therefore, the ADC’s member countries will be closely observing how the KP Secretariat Task Force Chair will attempt to draft and make recommendations for adoption by the plenary regarding the Secretariat’s Terms of Reference (ToR) as well as for the groundwork that needs to take place within the host country.
These essential courses of action shall include the setup of the Secretariat’s judicial structure, the establishment of a sound relationship with a competent financial institution possessing the competence to keep up with the transactions taking place within our industry and of course, a sensible nomination of the KP’s Executive Secretary.
Even though it can be considered a victory to have Botswana serve as the KP Permanent Secretariat, it has become more evident that a considerable amount of energy is now being placed into ensuring that African diamond-producing countries are passengers of this historic industry revision, rather than pilots of long-term positive change.
In spite of everything, the African Diamond Council (ADC) remains incredibly optimistic with regard to decisions and structure for next year’s launch. In addition, we are also more than prepared to assist in selecting candidates for the position of KP Executive Secretary and we shall make our organization available to ensure that there will be a successful introduction and launch to the KP Secretariat next year.
The situation in the Central African Republic (CAR), has been a cause of concern for a long time now. The determination of diamond values for export has not been solved as yet. What steps do you think should be taken to increase revenue for CAR?
While the Central African Republic (CAR) rarely gets very little media attention, it is not a secret anymore that this diamond-producing nation is a legitimate land of opportunity, even in the eyes of the Russian Federation.
Despite the negative and propagandized narratives that are being concocted, this nation of 5.6 million inhabitants also has to contend with being viewed as a territory that can easily be taken advantage of.
If there is any question or doubt in anyone’s mind regarding my preceding remarks, it only means that the reader may be a bit out of touch with the reality of this post-conflict state.
This is an African diamond-producing nation that is currently embracing and incorporating digital finance as a primary solution to its existing pecuniary challenges. Before I comment on their economic plans, we must also keep in mind that CAR is the first nation in Africa where Bitcoin was recognized as a means of payment.
It is safe to say that a strategy is now underway to tokenize the country’s natural resources, which should ease access to investors, democratize investments and even encourage fractional investment.
India has been looking for a direct rough diamond supply from Africa over the years, and now more eagerly due to the shortage. Your recent trip to Bharat Diamond Bourse (BDB) in Mumbai-India is viewed with great interest by the diamond industry. Your opinion?
Africa is definitely a requirement of sustenance for India’s cutting & polishing sector while India may also prove to be equally as important to the success and survival of natural diamonds originating in Africa.
My recent trip to Mumbai proved to revitalize the relationship between India and African diamond-producing nations, so the ADC is more receptive to the production needs of the Bharat Diamond Bourse (BDB).
During the Covid-19 pandemic, India was hit hard with coronavirus infections, which caused some slow-downs, setbacks and a lack of access to production.
Concurrently, African diamond-producing countries were able to keep many of the operating mining concessions aseptic, which provided superb opportunities for profit-oriented miners to create third shifts, which allowed stockpiling and storage of large reserves that included premium goods for sale to potential investors in diamond exploration.
Some of our expendable goods could be allocated to fill the void of those rough diamond shortages left in India. The ADC is also exploring how it can positively exert its influence to share some of those production supplies with the bourse in Surat. The ADC does have plans to increase rough diamond supplies into BDB before the end of the year and the relationship is certainly one worth cultivating.
In conclusion, I was tremendously impressed with Bharat Diamond Bourse's sophisticated Security Operations Control Center and the ADC will certainly look to collaborate with BDB and Milestone Systems to secure future installations of diamond facilities in Africa.
The ADC made a recent announcement to partner with Authentia. Tell us more about this partnership and how it will impact the industry on the whole...
Authentia is a highly-developed and patented industry platform that provides veritable transparency assurances to the entire global gemstone industry.
This state-of-the-art deliverable outperforms standard blockchain technology. It effectively supplies the required and essential solutions that have not only been absent in the African diamond industry but also within the Kimberley Process (KP) and grading lab infrastructures.
After years of carefully examining existing blockchain-powered tech platforms that today make despairing assertions to start their transparency journey at the source, the African Diamond Council (ADC) has concluded that many of these claims were overstated and a great number of acceptable solutions were recklessly overlooked.
The Authentia solution will ethically open up the diamond marketplace in ways not previously witnessed.
The ADC is more interested in the provenance of rough or polished diamonds as well as the exact location of the mine it was extracted from, so whenever an African diamond is examined, we want the truth with regard to its real source, its journey and its history.
The ADC is also determined to return smuggled diamonds to their country of origin after being confiscated by authorities and we are interested in supplying a mechanism that can identify diamonds that have been recut or stolen.
As an industry organization, we are certain that this Authentia /ADC partnership is exactly what the global gemstone industry needs to effectively fulfil the integrity of global markets that looks to restore consumer confidence and provide true consumer satisfaction.
Aruna Gaitonde, Editor in Chief of the Asian Bureau, Rough & Polished
