Adding Value to the Diamond Trade

The Economist reports on efforts by Diamond producers to climb up the value chain:

What is certain is that Africa, which produces 60% of the world's diamonds (see chart), wants to do more than just supply rough stones. “De Beers has failed to properly appraise the aspirations of African governments,” says Chaim Even-Zohar, a prominent diamond specialist. “Now it is payback time.” Gone will be the days when African diamonds were shipped to London to be sorted and aggregated in lots before being sold...African producers are also keen to cut and polish their own diamonds, which adds 50% or so to the value of rough stones, and even move into the jewellery business. Although it remains a big trading hub, Antwerp is no longer the world's cutting and polishing centre, and Israel has suffered as well. Almost all diamonds are now cut and polished in India or China, but African producers hope to get a share of the business.