Angola takes solid steps towards strengthening the diamond industry and making it more sustainable. It is now up to investors to embrace new challenges and new opportunities.

The NewJeweller Bureau

For a country that produces rough diamonds like Angola, both the innovations in the sale of its minerals and the polishing of its natural stones can be a bold path, but the African nation is ready to take this new route. Internally, the country is undergoing a notable transformation on its legal framwork with the aim of taking greater advantage of the diamond industry value chain: on the one hand, it elevated the National Diamond Trading Company (SODIAM EP) as a public company, and on the other hand, transformed deeply its policy of commercialization and exploration of diamonds. The results are already beginning to be noticed, the first of which is the extension to five key functions of the public company's performance at the local level and its ambition to become a great international player again.

In fact, as a state-owned company, SODIAM E.P. is consolidating itself as the main, responsible for the control and supervision of the purchase, sale and export / import of diamonds in Angola. In cooperation with the other relevant entities in the Angolan diamond industry, SODIAM EP performs the functions of the diamond Public Trading Body, manager of the State's diamond strategy reserve, buyer and reseller of 15 to 20% of the production quota authorized, buyer and reseller of rough diamonds produced on a small scale.

Sell more and better

However, as a Public Trading Body, it is now up to SODIAM E.P. to promote the sale of rough diamonds, both for domestic consumption and for export, to organize the diamond sale system, guaranteeing the commercial interest of producers, assuring the legal security of transactions through the application of Code of conduct, business ethics and fraud prevention. The company also assists in the process of adopting price stabilization measures and reducing uncertainty and price variation through the proper management of the State's strategic reserve. In alignment with the Kimberley Process (PK), SODIAM E.P. works closely with the National Kimberley Process Commission to ensure that the KP certification objectives are met.

With greater political influence, SODIAM EP also reserves the role of revitalizing and guaranteeing the implementation of the Diamond Marketing Policy, to ensure greater transparency in the marketing process and to foster a more competitive vision with a view, among other requirements, to increasing the volume of tax revenue from diamond trading - one of the objectives advocated by the State, its shareholder.

Facilitate partnerships with international investors

In addition to being the public sector supervisory body, SODIAM E.P. is also involved in expanding its operations in international markets, such as sponsoring the creation of facilities for investors in the areas of stoning and the purchase of Angolan diamonds on the stock exchange.

In this sense, SODIAM E.P. promotes investment in the Angolan diamond value chain, namely in polishing and jewelry, as well as plans to expand its brand in markets such as Dubai, India and Hong Kong. Within the scope of investment promotion, the company is betting significantly on the Saurimo Diamond Development Hub a project whose main objective is to bring together mining companies, focusing on the diamond value chain, offering an adequate and necessary infrastructure to foster and boost the development of this activity.

This project combines the provision of infrastructure with a strategic location in the city of Saurimo, in the province of Lunda Sul. The company is also working on revolutionizing the diamond trading process in Angola. The Angola Diamond Exchange, in creation, with the fundamental involvement of SODIAM E.P., is being designed with the aim of being the place of choice for the trading of rough diamonds, where buyers from all over the world will have access to diamonds from the most diverse exploration areas in the country, especially with the intervention of mining companies operating in Angola. The mission of the Angolan Diamond Exchange is to promote the interests of the rough diamond sector and directly related industries, integrating them in the global exchange network, in which the main international traders will also have access to a wide offer of diamonds from Angola. In alliance with the National Mineral Resources Agency of Angola (ANRM), SODIAM E.P. also bears the responsibility of promoting the “Diamante de Angola” brand internationally.

Is this a too bold step?

If a country that produces rough diamonds like Angola commits itself to implement relevant innovations in the sales of its minerals, simultaneously strengthening the entity promoting the new era of cutting and marketing its diamonds - SODIAM E.P. - it is up to the investor to believe and boldly embrace the path to transforming a more sustainable diamond industry from Africa, as well as the business opportunities that flow from it.