Zimbabwe bets big on diamonds

Published: 19 May 2026

Zimbabwe is aiming to increase diamond production to 5 million carats this year, even as the global diamond industry continues to battle declining prices, geopolitical tensions and growing competition from synthetic gems.

The target, set by the state-owned Zimbabwe Consolidated Diamond Company (ZCDC), represents an increase of 1.2 million carats from the 3.8 million carats produced in 2025.

Speaking before lawmakers in the eastern city of Mutare, ZCDC chief executive Douglas Zimbango acknowledged that the sector remains under severe pressure from both global and domestic challenges.

The international diamond market has experienced a prolonged downturn, driven by weak consumer demand, geopolitical instability and the rapid rise of laboratory-grown diamonds. However, Zimbabwe's diamonds have been hit even harder than the global average.

According to Zimbango, international rough diamond prices have generally fallen between 26% and 35%, while Zimbabwe's rough diamonds have plunged from a peak of US$79 per carat to as low as US$22 per carat.

He attributed the sharper decline to the country's product profile, geopolitical tensions, synthetic diamonds, market collusion and what he described as an unsatisfactory sales framework.

"The international diamond market remains in a downturn, and specifically the unique rough diamonds will typically command a 2026 price range of between US$22 and US$34 per carat," Zimbango said.

The figures stand in stark contrast to higher-quality rough diamonds produced elsewhere, which continue to fetch average prices of around US$100 per carat.

Official statistics show that Zimbabwe sold 784,764 carats during the first quarter of 2026, representing an 11% decline in sales volumes compared to the same period last year. Revenue from those sales fell by approximately 29% to around US$21.6 million.

Despite the difficult market conditions, authorities remain optimistic that increased production and restructuring efforts will help revive the sector.

ZCDC, which is owned by Mutapa Investment Fund, has produced a cumulative 26.5 million carats since beginning operations in 2016.

In a broader effort to improve efficiency across the mining sector, the sovereign wealth fund recently reorganised Kuvimba Mining House and established five new entities aimed at streamlining operations and boosting productivity.
- Business Insider

Tags: Diamonds,