STAFF REPORT
DEPUTY minister of Industry and Mines Gaudentia, Kröhne has raised concern over the impact of lab-grown diamonds on the Namibian original diamond industry.
Precious stones contribute about 6.5 percent to Namibia’s Gross Domestic Product(GDP).
Speaking at the round table on the promotion of natural diamonds on Wednesday she said the large-scale producers and the entire diamond industry in Namibia has been significantly affected by the economic downturn, driven largely by the rise of lab-grown diamonds and the resulting decline in diamond prices. “ This has led to a substantial decrease in revenues for the Namibian government. In 2023, Debmarine Namibia contributed nearly six billion Namibian dollars to the state, thanks to the strong performance of the fully operational Benguela Gem vessel. However, this figure fell sharply to just over two billion Namibian dollars in mid-2023 due to the weakening diamond market,” she said.
She said the lower contribution level is expected to persist through 2025, with a modest increase anticipated in 2026.
“ A more noticeable recovery in the diamond market —and, consequently, in contributions to the government—is projected to begin in 2026, with a return to 2023 levels only expected by 2027.
Through the Diamond Board of Namibia, we continue to promote the unique value of natural diamonds, their rarity, authenticity and capacity to uplift communities, whilst grounded in ethical sourcing and environmentally responsible practices, Kröhnesaid.
The Deputy Minister said Namibia has embraced technological innovation, through the utilization of blockchain systems at the Namibia Diamond Trading Company to verify the origin of diamonds, branding
and reinforce their story of ethical sourcing and transparency.
“A particularly pressing concern is the newly announced U.S. Executive Order of April 2, 2025, which introduces broad tariffs aimed at rebalancing global trade flows.
Namibia now faces a reciprocal 21% tariff on mineral exports, including diamonds, to the U.S, a significant market for Namibian goods, she said.
She said tariffs are likely to reduce Namibian exports, create market imbalances and introduce new volatility in global trade, particularly in the natural diamond sector.
Kröhne added that these developments threaten to undermine proposals to renew the African Growth and Opportunity Act (AGOA), which has historically provided non-reciprocal market access for African countries.
nations.
“We take note of encouraging developments, such as the De Beers
Group CEO’s dialogue with U.S. authorities to secure a zero-tariff arrangement on diamond imports. The Namibian Government reaffirms its commitment to align efforts with other diamond producing nations; in addressing the challenges facing diamond industry and to explore how best we can promote natural diamonds globally.
“Our government remains open to bilateral and multilateral dialogue to strengthen trade partnerships and ensure mutually beneficial outcomes, while addressing issues of equitable and inclusive global
trade practices, sustainability, ethical sourcing, or even the competition from laboratory grown diamonds, ”she said.
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