Namibia’s diamond export receipts decreased by 53.3% annually and 68.4% quarterly to N$1.8 billion in the first quarter of 2024, according to official statistics.
According to the Bank of Namibia’s Quarterly Bulletin, the significant decline in annual and quarterly diamond export earnings is attributable to lower volumes exported and lower realised prices.
“The fall was chiefly ascribed to lower realised prices and much lower volumes exported, amidst the ongoing muted global demand and consumer spending in key diamond markets due to unfavourable macroeconomic conditions, which were further exacerbated by the pressure from lab-grown diamonds,” the central banks said.
Despite the decline in export earnings, diamond production rose by 0.6% annually and 11.2% quarterly, reaching 635,858 carats.
“Rough diamond production rose annually and quarterly, attributable to more carats mined at sea and land operations,” the bulletin noted.
The slightly improved diamond production stemmed from more carats mined both onshore and offshore.
“Likewise, quarterly, diamond production rose by 11.2% from 572,024 carats, predominantly driven by more carats mined at sea operations as the Benquela Gem continued to boost production of diamonds from the seabed off the coast of Namibia,” the bulletin noted.
This comes as the International Diamond Exchange (IDEX) reported that the diamond price index fell by 0.3% quarterly and 15.2% annually, reaching 109.50 points in the first quarter of 2024.
BoN noted that weak consumer demand in major markets like the US and China, along with economic uncertainties, contributed to this price decline. “The ongoing uncertainty surrounding economic growth prospects contributed to a continued cautious purchasing approach by sight holders. Although the demand for and prices of lab-grown diamonds have also been declining, they continue to threaten the demand for natural diamonds,” the bulletin noted.-
