Antwerp and Angola Forge a New Alliance in the Diamond Trade: A Strategic Move to Enhance Global Market Share
By John Jeffay
December 2, 2024
In a significant development for the global diamond trade, Antwerp, often regarded as the diamond capital of the world, has entered into a Memorandum of Understanding (MoU) with Angola, a nation rich in natural resources and one of the leading diamond producers globally. This partnership, formalized last week, aims to bolster the trading relationship between the two entities, with a keen focus on enhancing the flow of Angolan diamonds to Antwerp, a market currently overshadowed by that of Dubai.
The MoU was signed by the Antwerp World Diamond Centre (AWDC), Angola’s government-owned mining company, Endiama, and its sales subsidiary, Sodiam. The agreement represents a strategic effort by Antwerp to secure a more substantial portion of Angola’s diamond exports, which have increasingly been channeled through Dubai’s thriving diamond trade sector.
Isidore Morsel, chairman of AWDC, expressed optimism about the potential for increased trade, stating, “We firmly believe that the share of direct imports of Angolan rough diamonds can grow significantly.” His sentiments reflect a broader ambition to not only enhance the volume of diamonds traded but also to establish a more direct and cost-effective supply chain from Angola to Antwerp.
Currently recognized as the fourth largest diamond producer in the world by value—as highlighted by 2023 figures from the Kimberley Process—Angola’s diamond-rich territories remain vastly underexploited. An estimated 60 percent of the country’s diamond reserves are yet to be explored, presenting a lucrative opportunity for investment and partnership. The MoU has the potential to catalyze this exploration, inviting new stakeholders to participate in the Angolan diamond market.
In addition to facilitating greater exports, one of the key components of the agreement involves providing Angola with the requisite expertise to develop an export verification point for rough diamonds, adhering to the stringent G7 standards. Karen Rentmeesters, the CEO of AWDC, noted, “We can provide them with practical and technical tools to help make a G7 verification point in Angola a reality in the future.” Such an initiative would not only enhance the credibility of Angolan diamonds on the international stage but would also establish the country as a significant player in global supply chains, alongside existing verification points such as Antwerp itself and Botswana, which is expected to open its point in 2025.
The importance of such verification points cannot be understated, especially in an industry plagued by concerns over conflict diamonds and ethical sourcing. By fortifying Angola’s export control frameworks, the MoU stands to promote more responsible and traceable diamond trade, reassuring consumers and investors alike of the legitimacy of Angolan diamonds.
This agreement comes at a time when the global diamond market is experiencing transformation influenced by changing consumer preferences, technological advancements in diamond processing, and an increased focus on sustainability. Angola’s untapped resources coupled with Antwerp’s robust trading infrastructure could be a formidable combination, potentially reshaping the dynamics of how diamonds are sourced, processed, and marketed.
Moreover, Antwerp’s ambitions to increase its market share could have ripple effects throughout the diamond industry, prompting other diamond-rich nations to reconsider their partnerships and export strategies. As the competition intensifies, both Antwerp and Angola may find themselves in closer collaboration with other countries, further entwined in the global supply chain.
In conclusion, the MoU between Antwerp and Angola is not merely a bilateral agreement; it is a proactive measure that seeks to redefine the landscape of the global diamond industry. As both regions navigate the complexities of this collaboration, their collective efforts could pave the way for sustainable growth, innovation, and enhanced accountability within the sector.
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