Rapaport raps Belgium’s diamond industry ‘claw back’
Mbongeni Mguni | Monday January 29, 2024 11:53
Botswana and other African producers are unhappy over the G7’s plan which states that from September all polished diamonds should be routed through Antwerp for certification that the stones are not of Russian origin. A G7 team that was in the country last week for consultation left without providing any assurances to local authorities.
Minerals and Energy minister, Lefoko Moagi, previously described the G7’s proposals as ‘market swallowing’, while De Beers, the world’s single biggest industry producer outside of Russia, has equally noted its outrage on the issue.
On Wednesday evening, Rapaport said while all players were agreed that Russian diamonds should be cut off from the global market, some countries and governments were using the situation to advantage themselves.
Rapaport is the founder of RapNet, the world’s largest diamond trading network with daily listings of diamonds valued at $7.4 billion. The Rapaport Price List is the primary source of diamond prices, providing benchmark asking prices used by the global diamond trade to compare, and negotiate diamond prices.
Rapaport is regarded as outspoken in the global diamond industry and has taken hard lines on issues such as the Kimberley Process’ relevance and synthetics.
In his webinar on the state of the industry held on Wednesday, Rapaport accused Belgium of attempting to pull a “screwaroony,” or underhanded move.
“Everyone is in it for themselves and taking advantage of the war in Ukraine to screw around with the situation,” he told the webinar, which at some point had 1,300 participants. “The Belgians with the latest ‘screwaroony’ are trying to claw back the rough trade from Dubai. “Everyone is in it for themselves.”
In recent years, particularly since COVID-19 hit, Dubai has emerged as the world’s fastest growing diamond trading centre, eclipsing Antwerp which enjoyed the role for decades. Industry analysts say Dubai’s shorter distance from the manufacturing hubs of Mumbai and Surat in India, the trading centre of Tel Aviv in Israel as well as growing connections with African producers, has seen it overtake Antwerp in recent years.
For Botswana, the G7’s move runs counter to government’s plans for more local beneficiation and greater access to value in the diamond downstream, objectives which align with both the pursuit of a knowledge-based economy and the transformation agenda.
“As Botswana it goes against our vision about where we want to go in terms of diamonds and value chain development,” Moagi said in November.
The plan for a single node in Antwerp also represents a swing back to Europe for global diamonds at a time when Gaborone is angling for greater influence in the industry, such as through hosting the Kimberley Process Secretariat.
Rapaport cautioned that governments should not be expected to act outside of their interests.
“Governments do what is in their best interests and if you think the US government is here to protect the diamond industry, you’re nuts,” he said.