South Africa's diamond industry turns to local market to boost sales

A diamond ring and bracelets are displayed at Nungu Diamonds, during an interview with Reuters amid a nationwide coronavirus disease (COVID-19) lockdown, in Bedfordview, located on Johannesburg's East Rand, South Africa, July 27, 2020. Picture taken July 27, 2020. /Reuters

Having experienced a slump in sales amid the COVID-19 pandemic, South Africa's diamond industry has turned to the local market to boost sales.

The industry has remained steady even as other sectors reported massive losses occasioned by lockdown restrictions aimed at curbing the spread of COVID-19.

A Reuters report says Nungu Diamonds, a South African cutting and polishing firm, saw a 60% growth in its custom-made jewellery sales since South Africa imposed a strict lockdown in March.

This potentially points to a move by South Africans to go on with their plans such as weddings and engagements despite the strict lockdown measures.

"We remain resilient. We fight on," Reuters quotes Nungu Diamonds founder Kealeboga Pule, who also said June was the best month in a year, with sales including engagement and wedding rings.

South Africa is Africa's worst-hit country by the pandemic. The country ranks fifth globally in the number of confirmed infections, shadowed only by the United States, Brazil, India and Russia.

The pandemic has affected many sectors globally, forcing millions of job losses as businesses recorded losses.

But even as South Africa's diamond industry remains resilient, Nungu is optimistic profit margins could get better as lower global demand has depressed the prices of uncut, unpolished rough stones bought from the mines.