Angola has formally announced the replacement of Alrosa, the Russian diamond behemoth, in its state-controlled diamond mining enterprise, Catoca, marking a significant pivot in the southern African nation’s gemstone sector. This move is part of a wider effort by Angola to distance itself from entities entangled in Western sanctions imposed on Russia following its military intervention in Ukraine.
The shift was confirmed by Diamantino Azevedo, Angola’s Minister of Mineral Resources, Oil, and Gas, who stated that an Omani entity, affiliated with Oman’s sovereign wealth fund, will now assume Alrosa’s former role as a major stakeholder in Catoca. Alrosa had held a substantial 41% share in Catoca, a company that dominates Angola’s diamond output and plays a pivotal role in the global diamond market.
Minister Azevedo, in a statement to national radio, indicated that Alrosa’s involvement in Catoca had become a liability, undermining Angola’s reputation in international diamond trading circles. “Having sanctions-hit Alrosa as a shareholder was affecting Angola’s credibility in the international diamond market,” he remarked, underscoring the geopolitical and economic dimensions of the decision.
This decision also impacts the Luele mining project, another significant diamond asset in Angola. Alrosa, by forfeiting its stake in Catoca, will consequently relinquish its involvement in the Luele venture. The Russian company, however, has remained tight-lipped about the development, declining to issue any comment on the matter.
While the Angolan government has not disclosed the specifics of the agreement with the Omani firm, this shift underscores the nation’s efforts to fortify its standing in the global diamond economy amidst complex geopolitical challenges. The replacement of Alrosa aligns with Angola’s broader ambition to diversify its economic alliances and reduce vulnerabilities to international sanctions.
Catoca is a cornerstone of Angola’s mining sector, accounting for a significant proportion of the country’s diamond production and export revenues. Its operations are critical not only to the Angolan economy but also to the dynamics of the global diamond market. The company’s prominence makes its shareholder composition a matter of substantial international interest.
By stepping in, the Omani entity brings with it the financial backing and strategic vision of one of the Gulf’s most significant sovereign wealth funds. This partnership marks Oman’s increasing economic engagement in Africa, reflecting a growing trend of Gulf Cooperation Council countries seeking diversified investment opportunities across the continent.
For Angola, this transition represents more than a change in partnership. It is an opportunity to re-establish its credibility and recalibrate its trajectory in the diamond sector, free from the encumbrances of sanctions or adverse global perceptions.
With the spectre of sanctions hanging over Alrosa since 2022, Angola’s diamond industry faced challenges in securing favourable trading terms and maintaining robust market ties. The replacement of Alrosa could therefore signal a turning point, enabling Angola to enhance its access to international markets and attract further investments into its mining sector.
Although details remain sparse, the strategic implications of this transition will undoubtedly resonate within the global mining and investment communities. Both Angola and Oman stand to gain from this recalibrated relationship, as Africa’s resource-rich landscapes increasingly intersect with the investment ambitions of Gulf nations.
