Namib Desert Diamonds (NAMDIA) says it has generated US$1.1 billion (N$19.9 billion) in sales revenue since its inception.
NAMDIA Chief Executive Officer (CEO) Alisa Amupolo said the revenue covers the period from the company’s first diamond sale in September 2016 to October 2024.
“The diamonds have been sold to buyers in Belgium, the United States, the United Arab Emirates (Dubai), India, Israel and Namibia. The total value of diamonds traded over this period is US$1.1 billion in sales revenue,” Amupolo told M&E.
She also expressed concern over the declining demand for polished diamonds, which has resulted in historically high inventory levels and significant pressure on rough diamond prices.
“Yes, NAMDIA is very aware of the challenges currently facing the global diamond industry, which is at a critical turning point. For NAMDIA, this has translated into a drop in average buying prices this year,” she said.
The CEO noted that this situation is exacerbated by underperformance in two key diamond consumption markets – the United States and China.
“U.S. retail demand is subdued as consumers face rising living costs, while China’s economic challenges have led to a near-complete market withdrawal, with reselling of older diamonds replacing new purchases,” she explained.
Additionally, lab-grown diamonds (LGDs) have captured almost 50% of the natural diamond market share, particularly in the lucrative engagement and bridal segments.
“This shift has resulted in poor demand for polished diamonds in India’s midstream, leading to the highest inventory levels ever recorded and further downward pressure on rough diamond prices,” she said.
Despite these challenges, NAMDIA remains proactive and resilient, focusing on strategic measures to navigate industry-wide issues while safeguarding the value of Namibian diamonds.
To mitigate these impacts, NAMDIA has optimised its sales strategy by transitioning from a competitive bidding sales model to a direct sales model for the remainder of the financial year.
“By adopting this method, NAMDIA aims to enhance credibility and trust with clients, ensuring greater stability in cash flow and market positioning,” Amupolo emphasised.
She asserted that direct sales allow NAMDIA to maintain greater control over pricing, ensure a consistent supply to clients, and mitigate the unpredictability associated with competitive bidding, especially during economic downturns.
“This approach helps stabilise operations and enables more predictable financial outcomes,” she noted.
Looking ahead to the next financial year, NAMDIA’s strategy will focus on aligning with the values of millennial and Gen-Z consumers, who prioritise environmental sustainability and social impact.
“By driving demand through storytelling, collaborating with clients, and forming strategic partnerships, NAMDIA aims to position itself as a leader in responsible diamond trading, meeting both market and consumer expectations,” she said.
NAMDIA diamond marketing and sales company, perfectly positioned to create a sustainable route to market a portion of Namibia’s diamonds was established in 2016 by the Government of Namibia. It trades as a private company.
