South Africa’s State Diamond Trader (SDT) is set to buy diamonds from other African countries starting with Botswana.
SDT’s chief executive Nosiphiwo Mzamo told Rough & Polished’s Mathew Nyaungwa at the country’s inaugural diamond show, which recently took place on the sidelines of the African Mining Indaba in Cape Town, that they will not be limited to a 10% run of mine, as is the case when they purchase local goods.
She said SDT has ring-fenced R20 million ($1,08 million), which will be used to start buying diamonds from Botswana.
Focus would be on rough stones in demand by the SDT clients.
SDT purchased 248,550 carats and sold 251,604 carats during the 2023-2024 financial year.
Mzamo said South African production is continuously falling and De Beers, as the largest producer, in the country, has highlighted that depressed output will continue till 2027.
This, she said, means that the purchases and sales would likely remain the same.
Meanwhile, Mzamo said the country’s inaugural diamond show was a success as they recorded a great turnout with both local and international delegates.
She said the clients who exhibited were able to build good networks more than selling.
Below are excerpts from the interview.
What was the level of demand for rough diamonds from clients last year?
Based on the survey conducted with regard to clients’ requirements/demand in 2024, the SDT Clients demand is at a total of 382,035 carats.
How are you navigating the challenging diamond market?
The diamond industry is currently on a downward trajectory. The State Diamond Trader is navigating through the challenges by purchasing and selling what clients currently have demand for. It is a fact that clients are extremely selective about what they are buying and price sensitive too. The State Diamond Trader is also using its long-standing relationships with the producer to negotiate better prices to allow for the entity and the clients a fighting chance to purchase rough.
How many carats did you purchase and distribute to your clients in 2024?
The State Diamonds Trader purchased 248,550 carats during the 2023-2024 financial year. The total of carats sold was 251,604 carats. The variation in carats was due to the stock from 2022-2023 being in the 2023-2024 financial year. In 2024 from April to December the State Diamond Trader bought and sold 104,009.48 carats.
What is your projection for the 2024–2025 financial year?
The State Diamond Trader is exploring purchasing diamonds from other African countries with a pilot project to be embarked on in Botswana. As it currently stands South African production is continuously decreasing and De Beers as the largest producer has highlighted that these low levels of production will continue till 2027. This means that the purchases and sales would likely remain the same. Through the pilot project, the entity has ring-fenced R20 million ($1,08 million) which will be used to start the pilot. The focus will be on rough diamonds which are in demand by the State Diamond Trader clients. Through this project, State Diamond Trader will not be limited to 10% run-of-mine.
Which types of stones are in demand?
Most clients' demand is for plus 2 carats rough stones as these are the sizes most economically viable to be manufactured in South Africa. There were also some clients who demanded the -6 grainers and this is due to them partnering with international clients or having access to international markets, which allows them to aggressively market the polished from those size ranges.
What prompted you to introduce the diamond show?
The State Diamond Trader has been exhibiting in Hong Kong since 2014. The entity in partnership with its clients has participated nine times at the show. The target is the September show. The team sat and saw that most of these countries are not even producing diamonds, but they have made success in ensuring that they bring the world together to market their polished. The State Diamond Trader wanted to bring a similar show back home.
Many know that South Africa is famous for mining diamonds, and it also has brilliant craftsmanship for manufacturing diamonds. The show aimed to showcase such craftsmanship and to reinforce Provenance “Mined in South Africa, Manufactured by South Africans.” The world loves diamonds from South Africa and these diamonds are associated with high quality. Today it is a fact that people who buy polished diamonds and jewellery want to know the story and South Africa has such stories to tell.
Consumers who purchase from South Africa are also able to do Mine to Market which is the full value chain of a diamond.
How successful was the show?
The show was very successful. We had a great turnout with both local and international delegates. The clients who exhibited were able to build good networks more than selling. The participants highlighted that it is a first show and they were not expecting to make many sales to build networks and showcase South African craftsmanship. The exhibitors have highlighted that there is potential to grow this show, and they will be working closely with the State Diamond Trader team on planning and marketing the next show. Many are advocating for a continuation of the Diamond Show and will be submitting proposals and suggestions for 2026.
How do you plan to grow the show in the future?
This year the most challenging task was to reach and invite diamond and jewellery buyers, especially on a global scale. Through the show, the team has collected contacts which will assist immensely with the upcoming show. The aim is to ensure that the exhibitors see benefits and return on investment, and this can only be realised through sales of their polished stones and jewellery.
The Marketing team will continue to leverage digital marketing and social media to create content and put the diamond show out to the public.
The State Diamond Trader would also like to have exhibitors from other African countries such as Botswana, Namibia and others.
The team plans to enhance the experience through seminars and talks which will include informative sessions and workshops on the latest trends, technology, sustainability, and industry insights to draw in professionals looking to learn and grow.
The State Diamond Trade will continue with networking opportunities which will be conducted by organising exclusive events like cocktail dinners or private dinners where industry leaders, designers, and investors can meet, build relationships, and collaborate.
How is the show helping to showcase emerging diamond manufacturers in South Africa?
The diamond and jewellery show can be a powerful platform for showcasing emerging diamond manufacturers in South Africa. The State Diamond Trader will continue to have dedicated showcases for Local Manufacturers through the creation of a section that is dedicated to emerging South African diamond manufacturers that is themed. This can help them stand out and get more attention from international buyers and industry experts.
The State Diamond Trader has collaborated with Local Associations to make this show a success but there is room for more. The entity will be engaging with more producers and government entities such as the Department of Trade and Industry, The Jewellery Council and others to ensure that everyone is well presented and there is access to the broader network.
What is the current state of diamond beneficiation in South Africa?
It is a fact that diamond beneficiation is capital-intensive, especially with investment in technology. Moreover, the beneficiation space still faces challenges with access to finance and markets locally and internationally. South Africa has seen government and industry coming together to forge ways of working together and growing diamond beneficiation in the country. In addition to the above challenges, polished diamond prices were heavily affected by the sale of synthetic diamonds. This directly impacted sales of rough diamonds as most cutters and polishers were not willing to purchase rough diamonds to polish and be stuck with the polished. This is how State Diamond Trader also realised a lot of selective buying.
In January 2025, there it was reported that the South African government proposed the establishment of a R100 million ($5,4 million) fund aimed at supporting local diamond cutters and polishers. This initiative seeks to bolster the domestic diamond processing industry by providing financial assistance and resources to enhance competitiveness. This further shows the support that government plans to provide to ensure growth and inclusiveness.
South Africa's diamond beneficiation landscape is characterised by proactive government policies, strategic industry partnerships, and a focus on inclusivity and sustainability. While challenges such as competition from synthetic diamonds and the need for economically viable beneficiation strategies persist, the sector is actively implementing initiatives to strengthen its global position and ensure long-term sustainability.
Mathew Nyaungwa, Editor in Chief, recently in Cape Town, South Africa, Rough&Polished
