The decision, approved by the cabinet this week, commits the nation to participate in a marketing initiative launched in June by major African diamond producers, industry bodies, and De Beers. The campaign, coordinated by the Natural Diamond Council, is designed to reinvigorate global demand for natural stones, which has been hit by three years of softer prices and growing competition from synthetic alternatives.
Under the agreement, participating countries and companies will contribute 1% of their annual rough diamond revenues to fund the promotional drive. For South Africa, the funds will come from local diamond producers, with the aim of supporting economic growth and job creation in the sector.
“Lab-grown diamonds are eating into our dinner,” Mines Minister Gwede Mantashe told industry stakeholders earlier this week, emphasising the urgency of renewed marketing efforts.
South Africa, the world’s sixth-largest diamond producer by volume, saw output dip 0.9% in 2024 to 5.8 million carats. Sales fell 21% year on year to 13 billion rand ($731 million), reflecting both weaker demand and pricing pressures.
The government hopes the joint marketing push will help reposition natural diamonds as a premium choice for consumers, especially as younger buyers increasingly favour synthetics for their lower cost and perceived environmental benefits.
