Meneja Wa Makampuni
JF-Expert Member
- Jul 7, 2020
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Sanctions on Russian diamonds: Good or bad for AFRICA?
Diamond-rich African nations are ramping up production to fill the gap left by the G7 sanctions on Russian diamonds. But not all countries are happy about the ban.
Earlier this year, the G7 , a group of wealthy nations comprising the US, Canada, the UK, Germany, France, Italy and Japan, and the EuropeanUnion banned rough diamonds mined in Russia.
The ban was part of many sanctions on Russia imposed by Western nations and their allies for President Vladimir Putin's 2022 invasion of Ukraine.
But the sanctions against Russian diamonds, intended to weaken Russia's economy in light of its aggression, could pose a potential risk to the global diamond market's stability.
"When you look at the G7 suggestion that affects the global diamond industry, you have to take into consideration that Africa is the dominant producer collectively," according to M'Zee Fula Ngenge, head of the African Diamond Council (ADC), told DW.
Botswana takes over from Russia
Before the ban, Russia was the world's leading diamondproducer.
"What's good for one is bad for the other. We are not anti-Russia," Fula Ngenge said. "But the fact that Russia is being considered to have sanctions put on them moves Botswana up to the number one position."
Fula Ngenge said Africa could potentially put another country into the top nine diamond producers.
"Most of these diamond-consuming nations are leaning on us now," he said, adding that he sees it as an opportunity to step out of the shadow and take on the task.
Could diamonds be Botswana's best friend?
African diamond producers, however, feel the G7 countries should have consulted them before implementing the ban on Russian diamonds.
Out of the G7 nations, only Canada is a diamond-producing country.
"[The G7] totally left us out of the conversation when we feel we are the world leaders [in diamond production]. They should have come to us first," Fula Ngenge said.
In addition, the G7 sanctions require African countries to send their diamonds to Antwerp, Belgium, for certification. Antwerp is considered the central hub for the global diamond industry.
However, Botswana has criticized the arrangement, arguing that it has disrupted the supply chain. Botswana President Mokgweetsi Masisi will meet German Chancellor Olaf Scholz on June 21 to discuss the certification process. Continue reading.. Sanctions on Russian diamonds: Good or bad for Africa? – DW – 06/19/2024
AFRICA we need to do more!
Diamond-rich African nations are ramping up production to fill the gap left by the G7 sanctions on Russian diamonds. But not all countries are happy about the ban.
Earlier this year, the G7 , a group of wealthy nations comprising the US, Canada, the UK, Germany, France, Italy and Japan, and the EuropeanUnion banned rough diamonds mined in Russia.
The ban was part of many sanctions on Russia imposed by Western nations and their allies for President Vladimir Putin's 2022 invasion of Ukraine.
But the sanctions against Russian diamonds, intended to weaken Russia's economy in light of its aggression, could pose a potential risk to the global diamond market's stability.
"When you look at the G7 suggestion that affects the global diamond industry, you have to take into consideration that Africa is the dominant producer collectively," according to M'Zee Fula Ngenge, head of the African Diamond Council (ADC), told DW.
Botswana takes over from Russia
Before the ban, Russia was the world's leading diamondproducer.
"What's good for one is bad for the other. We are not anti-Russia," Fula Ngenge said. "But the fact that Russia is being considered to have sanctions put on them moves Botswana up to the number one position."
Fula Ngenge said Africa could potentially put another country into the top nine diamond producers.
"Most of these diamond-consuming nations are leaning on us now," he said, adding that he sees it as an opportunity to step out of the shadow and take on the task.
Could diamonds be Botswana's best friend?
African diamond producers, however, feel the G7 countries should have consulted them before implementing the ban on Russian diamonds.
Out of the G7 nations, only Canada is a diamond-producing country.
"[The G7] totally left us out of the conversation when we feel we are the world leaders [in diamond production]. They should have come to us first," Fula Ngenge said.
In addition, the G7 sanctions require African countries to send their diamonds to Antwerp, Belgium, for certification. Antwerp is considered the central hub for the global diamond industry.
However, Botswana has criticized the arrangement, arguing that it has disrupted the supply chain. Botswana President Mokgweetsi Masisi will meet German Chancellor Olaf Scholz on June 21 to discuss the certification process. Continue reading.. Sanctions on Russian diamonds: Good or bad for Africa? – DW – 06/19/2024
AFRICA we need to do more!