SA’s diamond crisis deepens — Gwede Mantashe demands global action
Gwede Mantashe
In response to waning international demand and declining prices, South Africa’s Minister of Mineral and Petroleum Resources, Gwede Mantashe, has urged the country’s natural diamond sector to expand its global marketing efforts.
Speaking at a stakeholder engagement with industry players this week, Minister Mantashe highlighted the urgency of promoting South African natural diamonds more assertively on the world stage—particularly in light of the newly imposed 30% tariff by the United States.
Unlike other key South African mineral exports such as gold, platinum-group metals, and coal—which have been granted exemption—natural diamonds remain subject to the steep US tariff. This, Mantashe noted, places additional strain on an already pressured sector.
“Our largest trading partner remains China, with the US following closely behind,” Mantashe stated. “The new tariff is unavoidable, but what we can control is how we respond. I firmly believe a robust global marketing campaign for natural diamonds is essential. Lab-grown alternatives simply cannot replace the value and authenticity of natural stones.”
Mantashe also emphasised the importance of increasing production and ensuring greater local beneficiation through cutting and polishing activities that add value at the source.
“The goal is not just to extract more diamonds, but to process them locally, creating more jobs and keeping value within our borders,” he said.
The Minister called on industry representatives to actively contribute ideas on how government can support the sector.
“We’re here to listen. If you believe in a unified marketing approach for natural diamonds, say so, and we’ll act. But we’re not doing this in isolation—we want your input to shape the strategy.”
He acknowledged that synthetic diamonds are gaining traction, particularly in Western markets, where they now represent roughly a quarter of diamond sales. By contrast, their footprint in China and India remains minimal.
“In regions where natural diamonds have traditionally held strong market share, we’re now facing competition from lab-grown alternatives,” Mantashe added. “The challenge before us is clear: how do we respond? We need your ideas and innovation to steer this sector forward.”
