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Michael Tome Business Reporter

AFRICAN diamond-producing countries,  Zimbabwe included, should adhere to the dictates of Environmental Social Governance (ESG) to maintain their market edge on the global market.

Sustainability or ESG issues are fast becoming the benchmark for various operations around the world, informing market conditions.

The concept is linked to the United Nations (UN) Sustainable Development Goals pillars which seek to improve the approach to environmental, social, and governance matters in institutions across the world.

Several procurers now even qualify product pricing after weighing environmental, governance, and social input, prompting businesses to employ sustainability matters as part and parcel of their operations.

Addressing delegates at the Association of African Diamond Producing Countries (ADPA) Council of Ministers Meeting, Mines and Mining Development Minister, Zhemu Soda said the diamond-producing countries should be aware of the present-day diamond consumers’ demands to ringfence natural diamonds competitiveness.

“Let us all be reminded that responsible mineral sourcing is a moral imperative and an ethical obligation. Environmental, Social, and Governance issues are taking centre stage as best practices in the sector and l am glad that ADPA is taking initiatives in the implementation of responsible diamond sourcing through the proposed Sustainable Diamond Standard that is being worked out.

“We should embrace responsible sourcing practices as a way to safeguard the integrity of our diamonds as well as to protect the rights of the communities that host the mineral resources,” said Minister Soda.

ESG issues were first mentioned in the 2006 United Nations Principles for Responsible Investment (PRI) report consisting of the Freshfield Report and “Who Cares Wins.”

There remains a need to safeguard local diamond operations given their central contribution to the country’s Gross Domestic Product.

Zimbabwe’s diamond production accounts for about three percent of global production, with the largest producers being Russia, Botswana, Canada, and the Democratic Republic of the Congo.

Minister Soda reminded the meeting of what could be achieved through prudent diamond mining by the producing countries.

“This meeting should remind all of us gathered here of the profound importance of diamonds to our economies and the future of our continent. Let us use our diamonds to captivate the world and for the betterment of our communities,.

Minister Soda said the Zimbabwean Diamond Sector is a story of resilience and perseverance as the sector has grown to be a key player in the global diamond industry.

The meeting was however held at a time when the diamond sector is facing global complexities, particularly from the production of lab diamonds.

“Lab-grown diamonds are a present threat to our natural diamonds and we should be cognizant of that. Lab-grown diamonds should not be compared to the beauty and appeal that our natural diamonds have.”