BRICS Countries Can Play 'Decisive' Role in Stabilizing Global Diamond Market: S. African Official

BRICS countries can play a "decisive" role in stabilizing the global diamond market, Nosiphiwo Mzamo, CEO of South Africa's State Diamond Trader, said in an interview with Sputnik Africa, underscoring the importance of regional cooperation in the diamond industry to counter Western dominance and promote fair trade practices.

"The diamond dialogue actually creates an agenda for equal and fair interaction between parties that are involved in all segments of the global diamond trade," she said. "This will also ensure that we have a sustainable development of the global diamond industry. And there's a decisive role that the BRICS countries can play in maintaining the market stability."

Mzamo highlighted the potential for new forms of direct cooperation between diamond mining and processing countries within the BRICS. This collaboration would stimulate demand for natural diamonds in growing consumer markets and provide diamond mining companies with access to global supply chains.

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South Africa has already started conversations with Russia under the BRICS banner, he explained.

"They were here in South Africa two months ago where they were presenting to us in terms of technologies that they are currently using, in terms of traceability of the diamonds from the mine to the finger," she said.

Mzamo emphasized the need for southern African countries to work together, particularly within the framework of the African Commodities Strategy, a flagship project of the African Union's Agenda 2063. This strategy prioritizes intra-African trade and the development of regional infrastructure and skills.

According to her, these countries working together can become a significant player in global trade, address issues of production fragmentation and create a competitive advantage through value chain development and a global division of labor.

The head of the South African State Diamond Trader expressed concerns regarding the G7's proposed use of a single export note to certify and verify rough diamonds through Antwerp, Belgium, arguing that this mechanism has a devastating impact in diamond-producing countries.

"This proposed process does not recognize the internationally accepted right of each member state to exercise its sovereignty over all their minerals, including their rough diamond industry," the official told Sputnik Africa, noting that the ADPA has issued a statement regarding the impact of the G7 restrictions, which threaten to have negative consequences for the diamond industry.

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Mzamo added, "We, as the African countries, believe that the Kimberley Process Certification Scheme is working properly and there is no need to have a parallel certification scheme to the Kimberley Process."

The Kimberley Process is an international certification scheme designed to prevent the trade of conflict diamonds.

Mzamo also commented on the discovery of the world's second-largest diamond in Botswana, emphasizing the importance of local benefits for diamond-producing countries.

"Diamonds have established themselves as modern symbol of wealth and luxury. They are catalysts for innovation and global change," she stated. " And if I'm talking about just Botswana itself, 80% of their profit stays in the country, where it ensures that there's an economic future for the country."