Lab-Grown Diamonds Threaten Southern Africa’s Diamond-Based Economies

Lab-Grown Diamonds Threaten Southern Africa’s Diamond-Based Economies
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Countries across southern Africa that have long relied on natural diamond mining and exports are increasingly under pressure from the growing market for lab-grown diamonds.

According to an AFP report carried by Arab News, Botswana is among the hardest hit, introducing a sovereign wealth fund and exploring new sectors to reduce dependence on traditional diamond revenues.

Natural diamonds are a major source of income: in Botswana they account for approximately 30 percent of GDP and 80 percent of exports. But facing falling prices—as more consumers adopt synthetic alternatives—Botswana and its peer nations such as Namibia, Angola, and South Africa are now seeking durable economic diversification.

The shift includes investments in wildlife tourism, medicinal cannabis, solar power, and plans for a more independent diamond industry, such as taking greater control over producers like De Beers.

Lab-grown stones now represent roughly 20 percent of the global diamond market by value, and up to 50 percent by volume in the U.S. engagement ring segment, pushing down the average price of natural diamonds significantly.

Economists warn that if the trend is not addressed, southern Africa’s economies—especially those heavily dependent on natural diamond extraction—could face economic instability. Governments are under growing pressure to redefine their portfolio of revenue sources for a sustainable future beyond diamonds.