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Zimbabwe diamonds lose shine, spark massive job cuts as currency crunch bites, triggering alarm across the mining sector as the country’s largest diamond producer slashes hundreds of jobs to stay afloat. The Zimbabwe Consolidated Diamond Company (ZCDC) has confirmed the retrenchment of 400 employees—nearly 22% of its workforce—amid collapsing global demand and a brutal downturn in natural diamond prices.
The layoffs come as Zimbabwe’s economy reels from a foreign currency shortage and rising inflation, with mining—responsible for 60% of the country’s export earnings—now facing its toughest test in years. ZCDC, formed in 2016 to consolidate diamond operations in the Marange fields, was once seen as a cornerstone of Zimbabwe’s Vision 2030 economic transformation plan. But with rough diamond prices falling over 15% in 2024 and continuing to slide in 2025, the company has opted to scale down operations rather than shut down entirely.
The global diamond industry is undergoing a seismic shift. Lab-grown diamonds, once dismissed as synthetic alternatives, now dominate key markets like the U.S. and China, retailing for up to 80% less than mined stones. Younger, sustainability-conscious consumers are driving this change, leaving traditional producers with oversupply, shrinking margins, and mounting uncertainty.
ZCDC’s retrenchments follow similar moves by global giants like De Beers and Alrosa, both of which have slashed production targets and suspended auctions. De Beers alone is sitting on a $2 billion stockpile of unsold diamonds, while Alrosa has deferred major projects and taken significant write-downs.
In Zimbabwe, the fallout is immediate and painful. The loss of 400 formal jobs in a country where over 70% of the workforce operates informally will strain household incomes and increase reliance on overstretched public services. Workers at Anjin Investments, another Marange-based diamond firm, have also downed tools over unpaid salaries, highlighting broader distress across the sector.
The Zimbabwe Federation of Trade Unions has condemned the retrenchments, citing poor working conditions and ignored health complaints. One employee reportedly died from a stress-related illness days before the announcement, underscoring the human cost of the crisis.
ZCDC says it followed due process, offering voluntary packages before initiating compulsory layoffs. But critics argue that the company’s failure to diversify its operations and invest in downstream beneficiation has left it vulnerable. Zimbabwe exports 90% of its diamonds in raw form, capturing just 20% of the value chain, far less than regional peers like Botswana.
The currency crunch has compounded the crisis. With the Zimbabwe Gold (ZiG) struggling to gain traction and U.S. dollar liquidity tightening, mining firms are finding it harder to pay wages, import equipment, and maintain operations. Tax authorities have fined ZCDC over unpaid dues, and auditors have flagged chronic delays in VAT and income tax payments.
Industry observers warn that without urgent reforms—including improved governance, flexible taxation, and investment in value addition—Zimbabwe’s diamond sector could face long-term decline. The April 2025 export surge was a fleeting anomaly, and the structural challenges remain unresolved.
As global markets pivot toward synthetic alternatives, Zimbabwe must decide whether to adapt or risk being left behind. For now, the sparkle of its diamond industry is dimming—and the consequences are being felt far beyond the mines.