Zimbabwe Diamond Output Target Rises as Prices Remain Under Pressure

Mintesinot Niggusie

Zimbabwe’s state-owned diamond producer has set a production target of five million carats for 2026, even as weak global prices and rising competition from synthetic stones continue to weigh on the sector.

Chief Executive Officer Douglas Zimbango told lawmakers in Mutare that output is expected to increase from 3.8 million carats in 2025. The company, Zimbabwe Consolidated Diamond Company (ZCDC), has produced about 26.5 million carats since operations began in 2016.

The expansion plan comes against a backdrop of sharp price declines in the global rough diamond market. International prices have fallen by between 26 percent and 35 percent, according to the company. Zimbabwe’s diamonds have recorded a steeper drop, sliding from a peak of 79 US dollars per carat to around 22 US dollars per carat.

For 2026, ZCDC expects local diamond prices to range between 22 US dollars and 34 US dollars per carat, compared with an estimated global average of about 100 US dollars per carat for higher-quality producers.

The company attributed the weaker performance in Zimbabwe’s diamond sector to a combination of factors, including geopolitical tensions, competition from laboratory-grown diamonds, quality-related challenges and constraints within the sales framework. It also pointed to what it described as market collusion and an inefficient sales system affecting revenue flows.

Official statistics show diamond sales declined 11 percent year-on-year in the first quarter of 2026 to 784,764 carats. During the same period, revenue fell 29 percent to about 21.6 million US dollars.

ZCDC operates as a subsidiary of the Mutapa Investment Fund, which has recently restructured its mining portfolio under Kuvimba Mining House and created five new entities as part of efforts to improve operational efficiency across the sector.

Zimbabwe’s diamond industry remains a significant export earner, but continues to operate under pressure from subdued global demand and the expanding market for laboratory-grown diamonds.