from ALFRED SHILONGO in Windhoek, Namibia
WINDHOEK, (CAJ News) – THE recovery of the diamond sector in the world’s prime consumer of diamonds, the United States, is welcome news to Botswana and Namibia.
These neighbouring countries’ economies are heavily reliant on the special stones.
The waning of trade in diamonds, coinciding with the outbreak of the coronavirus (COVID-19) pandemic, exacerbated the economic decline in the two Southern African nations.
Market watchers noted that activity in the US had bounced back, with diamond sales having picked up across the market.
Rand Merchant Bank (RMB) added the Diamond Prices Overall Index had gained 7,1 percent year to date and 5,6 percent year-on-year.
“We expect that prices will, in general, track the resumption in economic activity in developed markets, which should bode well for export earnings from key markets like Namibia and Botswana,” RMB economists, Daniel Kavishe and Neville Mandimika, stated.
The analysts projected the overall diamond industry to continue to restructure over the next few years as synthetics garner momentum.
Botswana is the world’s second largest producer of diamonds, after Russia.
Diamonds constitute 70 percent of Botswana’s exports and 40 percent of Namibia’s.
– CAJ News