In recent years, Angola has implemented significant reforms in its diamond industry to promote transparency and combat illegal practices. These reforms have aimed to formalize the industry, attract investment, and create job opportunities for the country’s youth. This article explores the key initiatives undertaken by the Angolan government, including changes to the trading policy, efforts to combat diamond trafficking, and the reissuance of licenses to mining companies. It also highlights the importance of local content development and skill enhancement for sustainable industrial growth and economic self-sufficiency in Angola.

In 2018, the Angolan government approved a new trading policy for diamonds, with the primary objective of improving transparency in the buying and selling process. One significant change was allowing companies to sell 60% of their diamond production through their own channels, freeing them from the obligation to sell their entire output below international market prices to preferred customers. This shift aims to create a more competitive market and ensure fair prices for diamonds.

To address the issue of diamond trafficking and illegal immigration, the Angolan government launched “Operation Transparency.” This operation resulted in the revocation of licenses for 241 semi-industrial diamond mining companies and cooperatives involved in illegal practices. Additionally, over 400,000 foreigners were deported, as the government seeks to formalize the industry and discourage illegal “garimpeiro” miners who exploit the rich mineral resources in remote areas of Africa.

While formalizing the artisanal mining sector is a long-term goal for Angola, it is essential to educate the population about the harms of illegal mining practices. Helder Carlos, president of Sociedade Mineira do Cuango (SM Cuango), emphasized the need for a no-tolerance policy towards criminal garimpeiros to maintain the integrity of the industry and ensure the safety of employees. By adopting this approach, Angola can protect its diamond resources and create a conducive environment for sustainable growth.

In July 2019, the Angolan government returned licenses to the 241 companies and semi-industrial diamond mining cooperatives across seven provinces. The aim was to reduce youth unemployment and generate at least 20,000 jobs. André Buta, the national director of Mineral Resources, highlighted the importance of companies focusing on recruiting from neighboring communities. This approach ensures local content development and fosters a sense of ownership within the communities where diamond mining operations take place.

Hugo Silva Teles, executive director of Banco BIC, stressed the significance of developing local supply chains to reduce dependence on imports. By prioritizing local content, Angola can stimulate industrial development and boost its export capacity. Silva Teles also emphasized the importance of skills development to ensure a qualified workforce that can support industrial growth. Angola’s abundant commodities and opportunities provide a solid foundation for transforming the country into an export-oriented economy.

Angola’s diamond industry has undergone notable reforms to enhance transparency, combat illegal practices, and create employment opportunities. The revised trading policy has promoted fair competition, while “Operation Transparency” has sought to formalize the industry and discourage illegal activities. The reissuance of licenses to mining companies aims to reduce youth unemployment and generate economic growth. By focusing on local content development, building supply chains, and investing in skills development, Angola can position itself as a self-sufficient economy with a thriving diamond sector and increased export potential.