SA Calls for Aggressive Global Marketing Push to Revive Natural Diamond Sector

South Africa, historically one of the world's leading producers of high-quality diamonds, has seen demand slump and prices dip, particularly in the Western markets.

Facing a sharp decline in demand and mounting global competition, South Africa’s natural diamond sector is at a critical juncture. At a high-level stakeholder consultation held on Tuesday, Mineral and Petroleum Resources Minister Gwede Mantashe called for a coordinated, aggressive international marketing strategy to reposition South Africa’s natural diamonds on the world stage. The industry’s challenges have been further compounded by a 30% tariff imposed by the United States, a key export destination, from which natural diamonds remain excluded, unlike other South African mineral exports such as gold, platinum group metals, and coal.

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Sector Under Pressure: A Declining Market with Geopolitical Headwinds

South Africa, historically one of the world's leading producers of high-quality diamonds, has seen demand slump and prices dip, particularly in the Western markets. The rise of lab-grown diamonds, which now account for 25% of the diamond trade in the US, has posed a significant challenge to the appeal of natural stones.

Speaking candidly at the event, Minister Mantashe acknowledged the changing landscape:

“Natural diamonds are competing with lab-grown [diamonds]... particularly in the West. It’s very small in China and India. But in the West, lab-grown diamonds are competing with us aggressively.”

The United States, South Africa’s second-largest trading partner, is seen as a battleground market for diamond producers. With natural diamonds not exempt from the new US import tariffs, the industry faces a pricing disadvantage that may push consumers and retailers further toward lab-grown alternatives.

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The Solution: Market, Produce, and Add Value

In his address, Mantashe strongly advocated for three key interventions:

1. Aggressive International Marketing

• Minister Mantashe stressed that global branding and storytelling around natural diamonds is urgently needed.

• He rejected the notion that lab-grown stones can replace the authenticity and legacy of natural diamonds, urging stakeholders to market them as luxury items born from the Earth with historical and cultural significance.

2. Increase Production

• While marketing is key, Mantashe noted that supply must meet demand:

  “We must market natural diamonds, but we must produce more natural diamonds.”

• This includes revitalizing existing mines, improving exploration, and ensuring security of tenure for mining companies.

3. Value Addition Through Local Beneficiation

• One of the strongest messages from the Minister was the need to cut, polish, and add value to diamonds in South Africa, rather than exporting rough stones.

  “Value addition must happen close to the point of production.”

• This is in line with South Africa’s broader beneficiation policy, which seeks to boost local employment, skills development, and industrial growth in downstream sectors.

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A Call for Industry Collaboration

The session was described as collaborative and consultative, with Mantashe urging producers, traders, and other stakeholders to “express their views” and “help government think through” the crisis facing the industry.

“We are having this platform today to hear your views. We want to know if you agree with the idea of marketing natural diamonds. Help us build the strategy together.”

He also emphasized that the government would not act unilaterally, but wanted the marketing and promotional campaigns to reflect industry consensus and support.

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Global Context: Lab-Grown vs. Natural Diamonds

The global diamond market is undergoing a dramatic transformation, especially in Western countries where consumer preferences are shifting:

• Lab-grown diamonds, promoted as ethical, affordable, and sustainable, are becoming increasingly popular with younger buyers.

• Traditional natural diamonds, while prized for their rarity and natural origin, face criticism around mining practices, environmental impact, and supply chain transparency.

South Africa’s position in this context is both vulnerable and strategic—vulnerable to price competition and tariffs, but strategic in its legacy as a premium diamond producer, with the opportunity to reposition itself through branding, beneficiation, and trade diplomacy.

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Looking Ahead

The consultation marks a turning point in how South Africa intends to respond to global pressures on its diamond sector. With the government showing a willingness to engage, invest, and innovate, the ball is now in the industry’s court to develop ideas, partnerships, and concrete action plans.

If successful, the campaign to revive South African natural diamonds could not only restore competitiveness but also reinforce economic growth, preserve jobs, and enhance the country’s global reputation as a hub for ethical, high-quality gemstones.