Angola: Diamond Control Key to Economic Development

Greater state control of Angola's diamond sector and its long-term growth will give a boost to the economy and improve the lives of its 13 million citizens, most of whom lives in dismal poverty, a senior state company official told Reuters.

Sebastiao Panzo, spokesman for the state diamond company, Endiama, said that following the end of almost 30 years of war, the government was making efforts to clean up the diamond industry that had helped to fuel the conflict.

These included formalizing diamond production, with the ultimate aim of ending informal mining, known as 'garimpo', and ensuring that the state had complete control of all diamonds being sold to the international market.

“Angola's diamond industry will, long-term, provide a bigger contribution to the state budget. It can also create secure employment for Angolans - that's something a 'Garimpeiro' [traditional miners] can't do. And it will help to improve Angola's credibility at the international level,” Panzo said.

An estimated $350 million worth of Angolan diamonds are still being smuggled out of the country illegally annually, Panzo said. But the government's 'Operation Brilliant' - a crackdown on illegal immigrants mining and trading the gems - was already starting to curb illegal trafficking.

It had also succeeded in reducing the amount of diamonds produced by 'garimpeiros', which, Panzo said, was a sign that the state was gaining greater control.

“The export of diamonds produced by the informal market has slowed down, because we are getting rid of illegal traffickers from the sector and putting official companies in their place,” Panzo said.

Strengthening state control of the diamond sector would free up money for the government to spend on developing basic services.

Operation Brilliant was suspended for several months earlier this year after reports that the police and army had committed human rights violations against those being expelled. Panzo confirmed that the crackdown had resumed, but admitted it had been a difficult exercise.

"The big problem at the moment is distinguishing between Angolan and foreign garimpeiros, which isn't always easy. Only after we've done that, can we work out how many Angolans need jobs in the diamond-rich areas," he said.

"Endiama is trying to ensure that as many [Angolan garimpeiros] as possible are given jobs by formal companies in the area where they have been mining," he said.