Zimbabwe has relocated nearly all of its transactions to Dubai, eliminating intermediaries and focusing on cutters, polishers, and traders.
Bloomberg reports that the Zimbabwe Consolidated Diamond Company (ZCDC) has so far this year sold 4 million carats of stones at auction, an increase from 850,000 carats in 2022.
Sales and marketing manager Enock Moyo was quoted as saying that the state-owned miner is targeting revenue of $1 billion by the year 2030.
He said an average of 150 bidders have attended three auctions staged in Dubai, which is at least five times the number that has attended sales in Zimbabwe.
Improved diamond quality has also contributed to this trend.
Additionally, auction intermediaries in the southern African nation have been eliminated as a result of the sale of rough stones in the United Arab Emirates.
“For us, Dubai has been a game changer,” Moyo said.
The decision to shift sales to Dubai coincides with a worldwide decline in diamond prices.
Zimbabwe currently rates the UAE as its third-most important export destination, following South Africa and China.
ZCDC has raised its production target for the year from 4.3 million to 5.3 million carats.
The company also established a joint venture with ALROSA of Russia to do diamond mining in Chimanimani and Mwenezi.
Mathew Nyaungwa, Editor in Chief of the African Bureau, Rough&Polished
