Dr. Fula Ngenge, Chairman , African Development Foundation( ADF), in conversation with Renu Malhotra, Editor, AfroAsiannews.com
A pioneering economist, mining engineer, and visionary leader, Dr. M’zée Fula Ngenge stands among the foremost voices redefining Africa’s development paradigm. As Chairman of the African Diamond Council (ADC) and head of multiple continental institutions — including the African Development Foundation (ADF), African Diamond Manufacturers Association (ADMA), and African International Diamond Exchange (AIDEX) — Dr. Ngenge has spent over four decades building frameworks that empower Africa’s economic sovereignty.
Africa is home to some of the world’s richest diamond resources. Bulk of mined diamonds ultimately reach Indian buyers for cutting, polishing, and trading. How do you see the Africa–India diamond relationship evolving in the coming decade?
The Africa-India diamond relationship, long defined by a straightforward exchange of African rough stones for Indian polishing expertise, is poised for a transformative decade where it must evolve to survive. The bedrock of this evolution will be a necessary shift from a purely transactional model to a more integrated strategic partnership. Africa’s growing ambition for local benefaction, to capture more value by cutting and polishing diamonds on its own soil, will compel Indian companies to move beyond mere buying and invest directly in African facilities through joint ventures, thereby securing their supply chains while supporting continental development goals.
Challenge of Lab grown diamonds(LGDs)
This relationship will thrive by strategically navigating external pressures, chiefly the dual challenge of synthetic, man-made or lab-grown diamonds (LGDs) and shifting trade policies. The surge of lab-grown diamonds has somewhat saturated the market for smaller, cheaper stones, eroding a traditional strength of Indian manufacturing, and attempt to force a collective pivot towards the enduring luxury appeal of larger, high-value natural diamonds whose provenance can be verified and marketed as a unique, ethical asset.
Geopolitical Shifts & US Tariffs
Simultaneously, geopolitical shifts, such as potential U.S. tariffs that disadvantage Indian-cut gems, will require both partners to collaboratively advocate for their trade interests and diversify into new consumer markets. Ultimately, the partnership’s survival hinges on this very collaboration; as African nations consolidate their power, potentially through pan-African ownership of major producers like De Beers, the Indian mid-stream sector must recognise that its future prosperity is inextricably linked to helping Africa achieve its own economic ambitions, forging a new, more resilient bond of mutual dependency for the decades to come.
Do African sellers or cooperatives face pricing or procedural hurdles when engaging with Indian buyers and trading houses? How can these challenges be better addressed through bilateral frameworks?
African rough diamond sellers and cooperatives do face significant challenges when engaging with Indian buyers, though these are often indirect and stem from broader market and policy pressures affecting the Indian diamond industry. The primary hurdles are pricing and financial in nature. Weakened global demand in key markets like the United States and China, coupled with rising competition from lab-grown diamonds, has led to reduced orders for Indian manufacturers. This, in turn, decreases their capacity to purchase rough diamonds directly from African sources. Furthermore, Indian polishing and trading houses are experiencing a severe liquidity crunch and financial strain, exacerbated by high U.S. tariffs on polished diamond exports and a tightening credit environment. This financial pressure on the primary buyers inherently creates pricing and payment challenges for African sellers upstream in the supply chain.
Bilateral Frameworks
In response, India and African diamond-producing nations are actively working to address these challenges through bilateral frameworks. A central strategy involves promoting more direct trade and collaboration, with the Indian government advocating for direct diamond sales at mining forums to streamline the supply chain. High-level participation in summits within African nations like Botswana and the Republic of Angola focus on aligning strategies among producers and trading nations to ensure market stability for natural diamonds. A key bilateral initiative being led by the African Diamond Council (ADC) is the planned establishment of an India-Africa Diamond Institute in Africa. This institute aims to develop African capacities in processing, polishing, and grading, thereby adding more value within the continent itself. These efforts are part of a broader India-Africa partnership that seeks to enhance private-sector interaction and build stronger business-to-business linkages, which are crucial for creating a more resilient and mutually beneficial diamond trade relationship.
As the Chairman of several diamond and gemstone bodies, what regulatory and ethical measures are being enforced to ensure traceability and transparency from mine to market?
The diamond and gemstone industry’s adoption of terms like “blood/conflict diamonds,” “sustainability,” “benefaction” “system of warranties” and “traceability” demands critical examination. It is essential to scrutinize the origins of this terminology and the motivations behind its prominence, as not all such frameworks are designed for comprehensive or authentic implementation.
Consider “traceability.” While now a ubiquitous objective, its practical application has often been neither foolproof, nor genuinely binding, particularly in delivering equitable benefits to African nations and communities.
Kimberley’s narrow scope
The most recent discourse celebrating the Kimberley Process (KP) as a success is fundamentally flawed and categorically implausible. The KP’s narrow scope and lack of enforcement mechanisms constitute critical vulnerabilities. Proposing its model for bulk minerals is logistically unfeasible and politically unrealistic. A more effective solution requires moving beyond a state-centric cartel to instead mandate robust corporate due diligence, invest in verifiable traceability technologies, and confront the root causes of instability, which can be summed up as weak local governance and entrenched illicit trade networks.
What steps are being taken to build local benefaction industries so that more of the diamond value chain remains within Africa?
There is a growing and concerted effort across the African continent to shift from being a mere source of raw diamonds to becoming a hub for their processing and value addition, thereby capturing a much larger share of the final retail price.
This involves establishing and strengthening local cutting and polishing centres in major producing nations like Botswana, Namibia, and South Africa, often through strategic partnerships and joint ventures between governments and diamond companies like the De Beers Group of Companies. These arrangements frequently include stipulations that a significant portion of the rough stones mined are allocated to local factories, hoping to ensure a steady supply for domestic industries.
AiDEX & Reforms
Furthermore, governments are implementing policy reforms and providing incentives to attract investment in downstream sectors, including jewellery manufacturing, while also investing in the crucial skills development and training of a local workforce to master the craft.The establishment of the African International Diamond Exchange (AIDEX) and auction facilities is another critical step, enabling more stones to be sold through channels that benefit Africa on competitive terms. Collectively, these measures aim to transform the economic narrative of African diamonds, fostering job creation, technological transfer, and industrial diversification to ensure that the brilliance of the gems translates into lasting and tangible prosperity for their nations of origin.
How are digital technologies and blockchain systems contributing to Africa’s ability to verify origin and eliminate unethical trade practices?
A vibrant digital revolution is sweeping across Africa, far beyond the realm of diamonds, fundamentally transforming how the continent verifies the origin of its rich resources and champions ethical commerce. A critical analysis of the distinct functionalities of digital technologies, compatible blockchain systems, and traceability solutions is essential for discerning legitimate innovations from deceptive practices. A powerful alliance of technologies is making this possible, where the immutable, trust-building ledger of blockchain joins forces with real-time tracking from IoT sensors and the simple, accessible power of QR codes in some cases.
Newer models of synergy
This synergy is weaving a new fabric of radical transparency into supply chains, allowing a consumer anywhere in the world to trace the journey of their morning coffee back to the specific Ethiopian farmer who grew it, complete with the assurance of a fair price paid. In the mining sector, critical minerals like cobalt from the Democratic Republic of Congo are now being tracked from the moment they leave artisanal mines, ensuring they are not tainted by child labor or conflict, thus providing crucial ethical assurance for global manufacturers.
This powerful verification extends to the lush fields of Malawi and Rwanda for tea, the cashew farms of Kenya, and the shea butter cooperatives of Ghana, where authentic, artisan-produced goods are now cryptographically certified, protecting both the producer’s livelihood and the brand’s integrity.
The impact is profound, moving beyond mere tracking to foster genuine financial inclusion by linking digital records to mobile money, ensuring payments reach farmers and miners directly and promptly. By eradicating fraud and providing irrefutable proof of provenance, these technologies are not just solving problems, but are actually empowering Africa to brandish its most powerful new economic asset such as verifiable trust, which allows its producers to access premium global markets and finally capture the full value they so richly deserve.
QUOTE:
“The minerals beneath our soil are a means, not an end.”
Success must be measured not by carats extracted but lives improved
