Zimbabwe is aiming to increase diamond production to 5 million carats in 2026 through its state owned miner, the Zimbabwe Consolidated Diamond Company, despite mounting challenges across the global diamond sector.
The ambitious production target comes at a time when the international diamond market continues to face severe pressure from geopolitical instability, weakening consumer demand, the rapid rise of synthetic diamonds, and declining rough diamond prices. While most producers have experienced price declines of between 26% and 35%, Zimbabwe’s lower quality rough production has been hit far harder, with prices collapsing from highs of US$79 per carat to as low as US$22 per carat.
According to ZCDC chief executive Douglas Zimbango, Zimbabwean goods have suffered disproportionately due to a combination of product profile limitations, geopolitical tensions, synthetic diamond competition, market collusion, and what he described as an unsatisfactory sales framework.
“The international diamond market remains in a downturn,” Zimbango told lawmakers in Mutare, adding that Zimbabwe’s rough production now typically trades within a price range of US$22 to US$34 per carat. This compares unfavourably with higher quality producers achieving average rough prices closer to US$100 per carat.
Official figures show Zimbabwe sold 784,764 carats during the first quarter of 2026, representing an 11% decline in volume compared with the same period last year. Revenue performance weakened even further, with total sales value falling approximately 29% to US$21.6 million.
Despite the deteriorating pricing environment, Zimbabwe continues to pursue higher production volumes as part of a broader national economic strategy. Since commencing operations in 2016, ZCDC has extracted more than 26.5 million carats.
The country’s sovereign wealth vehicle, Mutapa Investment Fund, which owns ZCDC, has recently undertaken a restructuring of its mining interests in an effort to improve operational efficiency. This includes the creation of five new entities and the reorganisation of Kuvimba Mining House.
The Diamond Price Paradox
Zimbabwe’s current position highlights a growing structural problem within the global natural diamond industry. Unlike previous downturns driven largely by cyclical demand weakness, the present market correction reflects a far deeper transformation in the sector.
The rapid expansion of laboratory grown diamonds, combined with shifting consumer attitudes and global economic uncertainty, is forcing the industry to reassess the long term value proposition of natural diamonds. Producers operating within lower quality rough categories are facing the greatest pressure, as increased production volumes no longer guarantee higher revenues.
Zimbabwe remains one of the world’s largest diamond producing nations, accounting for approximately 3% of global supply and ranking seventh globally by production capacity. However, the widening gap between output growth and declining per carat values exposes the increasingly difficult economics confronting many diamond producing regions.
While Zimbabwe’s operational capacity continues to expand, the industry now faces a critical challenge: producing more diamonds in a market where the value of rough supply continues to deteriorate.
Source: DCLA
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