PRZOOM - /newswire/ -
Cape Town, South Africa, 2009/10/30 - New analysis from Frost & Sullivan, finds that the Central and Southern African countries, namely the Democratic Republic of Congo, Angola, Botswana, Namibia & South Africa, continue to dominate the global new mine supply of rough diamonds.
The Central and Southern African region is the world's largest and most concentrated source of diamonds. Rising global economic growth, coupled with increasing household wealth in the United States, China and India, is boosting the diamond mining and processing industry in the region.
New analysis from Frost & Sullivan (chemicals.frost.com), A Strategic Review of the Diamond Mining Industry in Central and Southern Africa, finds that the Central and Southern African countries, namely the Democratic Republic of Congo (DRC), Angola, Botswana, Namibia and South Africa, continue to dominate the global new mine supply of rough diamonds.
If you are interested in a virtual brochure, which provides a brief synopsis of the research and a table of contents, then send an email to Patrick Cairns, Corporate Communications, at patrick.cairns[.]frost.com, with your full name, company name, title, telephone number, company email address, company website, city, state and country. Upon receipt of the above information, a brochure will be sent to you by email.
"The global economy has been growing at an average rate of approximately 5 per cent over the last decade, emerging as one of the major drivers of the diamond mining industry in Central and Southern Africa," says Frost & Sullivan Research Analyst Wonder Nyanjowa. "Increasing disposable incomes have enabled consumers to spend on diamonds and other luxury goods, further spurring market expansion."
The region hosts about 65 per cent of the world's diamond reserves and accounts for approximately 60 per cent of the global new mine supply of rough diamonds, making it the region with the greatest diamond exploration potential. It will remain a major source of global new mine supply of rough diamonds in the medium-to-long term.
However, in recent years, high-quality synthetic diamonds have entered the jewellery market, and the technology used to manufacture them is rapidly improving. The availability of synthetic diamonds at drastically lower prices is a challenge to the growth of the natural diamonds market. Additionally, the global economic downturn has dampened the demand for diamonds and other luxury goods, as disposable incomes have declined.
"The downstream diamonds and luxury goods market is intensely competitive with a wide range of brands competing for a share of the consumers' disposable income," explains Nyanjowa. "Well-established and enduring brands are likely to better withstand the competitive pressures in this market."
Despite the limited upside potential for diamond prices in the next two to three years, diamond mining companies in central and southern Africa are poised to enjoy significant growth once the effects of the global economic slowdown start receding.
"Diamond mining and processing companies in Central and Southern Africa need to position themselves during the downturn and be able to swiftly respond to changes in the global economy," concludes Nyanjowa. "Although the immediate concern for most executives in the diamond mining industry is securing the future of their companies amid the debilitating effects of the slowing global economy, it is also important that diamond mining companies be able to respond rapidly to an upturn."
A Strategic Review of the Diamond Mining Industry in Central and Southern Africa is part of the Chemicals & Materials Growth Partnership Services programme, which also includes research in the following markets: South Africa's Gold Mining Industry, South Africa's Coal Mining Industry, South Africa's Platinum Group Metals Mining Industry, and South Africa's Ferrochrome and Manganese Mining Industry. All research services included in subscriptions provide detailed market opportunities and industry trends that have been evaluated following extensive interviews with market participants.
Frost & Sullivan, the Growth Partnership Company, enables clients to accelerate growth and achieve best in class positions in growth, innovation and leadership. The company's Growth Partnership Service provides the CEO and the CEO's Growth Team with disciplined research and best practice models to drive the generation, evaluation, and implementation of powerful growth strategies. Frost & Sullivan leverages over 45 years of experience in partnering with Global 1000 companies, emerging businesses and the investment community from more than 35 offices on six continents.
A Strategic Review of the Diamond Mining Industry in Central and Southern Africa / M41D