South Africa’s cabinet has authorised participation in a coordinated international initiative to strengthen the global market for natural diamonds, in response to mounting competition from synthetic alternatives. The decision follows growing consumer interest in laboratory-grown gems, which have increasingly captured market share due to lower prices and perceptions of reduced environmental impact.
The global diamond industry has faced sustained pressure over the past three years, as synthetic diamonds gain traction among younger, ethically conscious consumers. These shifts, combined with broader macroeconomic volatility, have contributed to declining international prices for natural diamonds.
In June 2025, representatives from major African diamond-producing nations, trade bodies, and De Beers, part of Anglo American, signed the Luanda Accord—a commitment to collectively promote the natural diamond market. The agreement, spearheaded by the Natural Diamond Council, establishes a funding mechanism through a levy of 1% on the annual revenues from rough diamond sales among participating countries. South Africa did not initially sign the accord, but has now moved to align with the initiative.
Minister in the Presidency Khumbudzo Ntshavheni announced on Thursday that cabinet had approved the Department of Mineral Resources and Petroleum’s participation in international agreements aimed at improving the marketing and promotion of South Africa’s natural diamonds. Under the plan, diamond producers operating in the country will be asked to contribute 1% of their annual revenue from rough diamond sales to support targeted marketing campaigns, with the aim of stimulating economic growth and employment within the sector.
Industry data indicates that South Africa is the world’s sixth-largest diamond producer by volume. The country’s output declined by 0.9% in 2024 to approximately 5.8 million carats, with total sales amounting to 13 billion rand (£555.9 million). This represented a 21% drop in value compared to 2023, according to official production and export statistics.
Mines Minister Gwede Mantashe underscored the urgency of the measure at a recent meeting with diamond producers, stating that the incursion of lab-grown diamonds into the natural diamond market required a coordinated industry response.
While proponents of synthetic diamonds highlight their affordability and reduced environmental footprint, advocates for natural stones argue that their geological rarity, cultural significance, and established value make them distinct within the global luxury goods market. The new marketing initiative aims to reinforce this positioning amid an evolving competitive landscape.
