Namibia’s rough diamond export earnings fell sharply in the first quarter of 2026 as weak global demand, lower prices and structural changes in the international diamond market continued to weigh on the sector, according to the Bank of Namibia’s June 2026 Quarterly Bulletin.
The central bank said export earnings from rough diamonds declined to N$1.5 billion, representing a 53.1% quarter-on-quarter decline and an 11.6% year-on-year decrease.
“Rough diamond exports recorded declines of 11.6 percent and 53.1 percent annually and quarterly, respectively, to N$1.5 billion,” the Bank of Namibia said.
The Bank attributed the downturn to subdued demand for luxury goods in key markets, particularly China and the United States, as well as elevated inventories across the global diamond supply chain and increasing competition from lab-grown diamonds.
“Notwithstanding this, the rough diamond export performance remained subdued due to weak global demand for luxury goods and lower realised prices, amid elevated inventories and increased competition from lower-cost lab-grown diamonds,” the Bank said.
Diamond prices also remained under pressure during the quarter, with global benchmark indices continuing to trend lower.
The Zimnisky Global Polished Diamond Index fell to 65.3 points in the first quarter of 2026, reflecting persistent structural demand challenges and changing consumer preferences in major markets.
“Diamond prices remained weak during the period under review amid subdued global demand conditions,” the Bank said.
Production, however, increased on a quarterly basis to 513,624 carats, supported by stronger offshore recoveries following the return of mining vessels from scheduled maintenance.
On an annual basis, output remained lower as major producers continued to scale back production in response to weak market conditions.
The central bank said the decline reflected deliberate supply management rather than operational challenges.
“On an annual basis, production declined amid the ongoing intentional production cuts by De Beers amid softer global diamond market conditions,” the Bank said.
