Diamond trading conditions difficult, says NDTC
The Namibia Diamond Trading Company (NDTC) says 2024 will present some challenges, particularly in light of the growing presence of lab-grown diamonds. This as market conditions have become difficult, it said."Despite a slight improvement in market conditions during the first quarter of 2024 largely due to the flexibility measures introduced towards the end of 2023, trading conditions became more challenging in the second quarter of 2024 as Chinese consumer demand remained subdued and the impact of lab-grown diamonds continued to be felt particularly in the United States," CEO Brent Eiseb said.
Another factor driving the challenging conditions was a higher-than-normal diamond inventory, he noted.
"With the higher-than-normal levels of polished diamond inventory remaining in the midstream of the diamond value chain, we do anticipate that the remainder of 2024 will continue to be challenging for the diamond industry."
"Notwithstanding, we see a very positive long-term outlook for the natural diamond sector, with favourable fundamentals, increasing differentiation between natural diamonds and lab-grown diamonds, and significant opportunities to engage the growing global middle class with the compelling attributes of natural diamonds," Eiseb said.
Dividends
The CEO said the company was able to pay dividends to the government to the tune of N$2.8 billion since its inception in 2007.
“Just for the year 2023, dividends amounted to N$100 million and we are well on track to deliver even better results in the current financial year, despite operating in a market that is ever-dynamic."
NDTC achieved significant milestones in corporate tax payments, contributing N$84 million in 2023 alone and a remarkable N$1.5 billion since its establishment in 2007. The company paid N$197 million in export levy payments in 2023, adding to a cumulative total of N$953 million since the enactment of the Export Levy Act in 2017.