Africa - Ancient Heart of the Gem Stone Trade

 Africa - the vast, dynamic and diverse continent that was home to the earliest human also hosts the planet’s most desirable collection of gemstones.

From Nigeria to Madagascar, several of Africa’s nations are among the world’s top producers of precious stones and sit in the centre of an expanding market. With the world value of unpolished gemstones standing at an estimated $20 billion USD, Africa sits at the centre of one of the world’s oldest and most lucrative trades.

Due to the geological nature of gemstones and the process of their extraction, most of Africa’s gemstones come from ‘artisanal and small-scale mining’ (ASM) operations. The reason for this is that most gem deposits are small, therefore run dry too quickly to warrant mass scale industrial investment. They are usually situated in isolated areas such as highlands, making many of them difficult to access, and provide much needed employment and income for the locals who mine them. 

This means that the job to supply the world’s demand for precious gemstones relies on the experts on the ground who scout for new sources and buy uncut stones straight from the source. These professionals operate on the gem trade’s ‘Tier 1’, the first people to buy and sell unpolished stones.  Many will outsource the cutting process, which transforms raw minerals into priceless gems, to India, Sri Lanka, and Thailand where this artisanal trade has long roots. The price of a gemstone rises with every Tier, all the way to the business who supplies the final customer.

While the traditional markets of North America and Europe remain insatiable in their desire for gems, in recent years rising economies such as China, the Gulf States, and Southeast Asia have opened up lucrative new markets for the industry. Since ancient times gemstones and jewellery have been coveted symbols of wealth and style, and with millions joining the global middle and upper classes each year their demand and value increase.

This makes Africa a unique investment opportunity, both for local and overseas business interests. Many gem rich countries such as Mozambique, Ethiopia, and Madagascar are currently underdeveloped in many regards creating difficulties for prospective buyers of their stones. Across the continent, dysfunctional bureaucracies and strained infrastructures can heap difficulties and expense on the export of their rich gem reserves.

However, where there is great challenge lies greater spoils. In the interest of profit, and the benefits to both local and international economies, it is the job of trained professionals to face down adversity in their hunt for the best stones.