Zimbabwe’s diamond industry defied global market trends with an extraordinary 912% surge in exports in April 2025, rising from $3.66 million in March to $33.47 million, according to the latest trade data from Zimstat.
This sharp rise comes at a time when global diamond prices have plummeted—from $3,400 per carat in 2020 to just $900 by 2024, marking a 74% decrease.
Despite the uptick in exports, Zimbabwe’s diamond sector is navigating significant headwinds.
Key challenges include steep U.S. tariffs starting at 10% and potentially rising due to political uncertainty and the growing dominance of lab-grown diamonds (LGDs).
These synthetically produced stones, chemically identical to natural ones, are often sold at an 80% discount.
Their affordability has shifted market preferences, particularly in the U.S., where they now surpass mined diamonds in volume.
A turning point came in 2021 when Pandora, the world’s largest jewellery brand by volume, ceased selling mined diamonds. Since then, lab-grown diamonds have gained significant traction, especially in the U.S., which accounts for over half of global polished diamond demand.
Although the April 2025 export spike is impressive, it still falls short of Zimbabwe’s peak performance.
The country previously achieved highs of $115.86 million in July 2023, as well as $66.38 million in May 2023 and $57.89 million in March 2024.
Such fluctuations underscore the volatility in Zimbabwe’s diamond trade.
Zimbabwe remains the world’s seventh-largest diamond producer, earning $938.7 million in export revenue since 2021.
However, the government’s $1 billion target, set in 2022, remains unmet, highlighting underlying structural issues in the industry.
The country’s diamond production is largely driven by a few major players, primarily state-linked enterprises.
The Zimbabwe Consolidated Diamond Company (ZCDC), established in 2016 after the state ousted private firms from the Marange fields over corruption, is the largest producer. ZCDC yielded 4.5 million carats in 2022.
Anjin Investments, a partnership between China’s Anhui Foreign Economic Construction Group and the Zimbabwean military’s Matt Bronze, was reinstated in 2019 after being expelled in 2016 over financial mismanagement. Its return has boosted production.
Russian diamond giant ALROSA, the world’s top producer by volume, is also deepening its investment in Zimbabwe.
After initial exploration in 2013 and a temporary exit in 2016, ALROSA resumed operations in 2019 and has since secured 40 Special Grants and Exclusive Prospecting Orders.
RioZim, better known for gold, contributes through its Murowa mine, further solidifying Zimbabwe’s place among global producers.
Yet, the country’s production has seen dramatic shifts.
From a high of over 12 million carats annually in the early 2010s, output dropped due to depleted alluvial resources and underinvestment.
The recent rise suggests recovery, but long-term sustainability depends on reform.
According to industry experts, tax reform is critical.
Zimbabwe’s rigid 10% royalty, paired with additional taxes, burdens investors. In contrast, Botswana offers incentives for local processing, lowering the effective tax rate and encouraging reinvestment.
To remain competitive, Zimbabwe must revise its tax policies, encourage local value addition, and attract investment through efficiency, innovation, and partnerships.
