Angola: Angola may become world’s third-largest diamond producer

4 November 2008

Luanda, Angola, 4 Nov – Angola may become one of the world’s top three diamond producers by 2010, if forecast production of 19 million carats is achieved, according to consulting firm KPMG.

The forecast is included in a study on the Angolan banking sector published in Luanda by KPMG, which said that with the aim of exporting a product with greater added value, Endiama was creating a second diamond cutting and polishing unit, in Lunda-Sul, which is expected to produce the equivalent of US$20 million in cut diamonds.

According to the study, Endiama is also developing a project to set up a jewellery production unit.

The state company plans to train 400 jewellers, at a time when the country remains one of thw preferred targets of foreign direct investment (FDI) amongst sub-Saharan African countries.

The diamond sector in Angola shows enormous potential for growth, the document said, whilst also noting that the sector saw reduced growth in 2007 due to adverse weather conditions.

Despite that, and making use of International Monetary Fund (IMF) figures, the study showed that Angola doubled the value of its exports, from US$790 million in 2004 to US$1.6 billion in 2007, making it the world’s fifth largest diamond producer by value, in a list headed by Botswana and followed by Russia, Canada and South Africa. (macauhub)