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The World Federation of Diamond Bourses: Connecting the Global Diamond Trade, with the Diamond Dealers Club of South Africa as a Key Player

The World Federation of Diamond Bourses (WFDB), established in 1947, serves as the official organization of the international diamond trading sector. Comprised of 29 member bourses, including the Diamond Dealers Club of South Africa (DDCSA), the WFDB facilitates a global network for the responsible and ethical trade of rough and polished diamonds.

One of the WFDB’s primary functions is to establish and uphold a set of common trading practices across its member bourses. This includes standardized procedures for diamond trading, such as valuation, dispute resolution, and ethical sourcing. Through these efforts, the WFDB aims to promote trust and transparency within the global diamond trade, ensuring a fair and consistent experience for all participants.

The WFDB also plays a crucial role in advocating for the diamond industry on a global scale. It engages with governments, international organizations, and the public to address issues such as the Kimberley Process Certification Scheme, which aims to prevent the trade of conflict diamonds. Additionally, the WFDB actively promotes consumer confidence by emphasizing the ethical and responsible aspects of the diamond trade.

The DDCSA, an esteemed member of the WFDB since its inception, plays a vital role within the South African diamond industry. Established in 1945, the club predates the WFDB, highlighting its longstanding commitment to ethical diamond trade practices. As a member of the WFDB, the DDCSA adheres to the organization’s set of trading practices, ensuring its members operate within a framework that promotes trust and transparency.

Furthermore, the DDCSA actively participates in initiatives led by the WFDB. This includes adhering to responsible sourcing guidelines and contributing to advocacy efforts aimed at promoting the diamond industry’s positive impact on communities and economies around the world.

However, both the WFDB and the DDCSA face challenges in the contemporary landscape. The rise of lab-grown diamonds has sparked debates about terminology and consumer preferences. Additionally, concerns regarding the environmental and social impact of diamond mining continue to receive widespread attention.

In response to these issues, both entities have demonstrated proactive leadership. The WFDB, for instance, actively engages in discussions surrounding lab-grown diamonds, advocating for fair and transparent terminology to avoid misleading consumers. The DDCSA, on the other hand, supports initiatives that promote responsible mining practices and contribute to the development of diamond-producing communities.

In conclusion, the World Federation of Diamond Bourses, with the Diamond Dealers Club of South Africa as a key member, plays a significant role in fostering a responsible and ethical global diamond trade. By establishing standardized practices, advocating for the industry, and addressing contemporary challenges, both organizations strive to ensure a sustainable future for the diamond trade and the communities it supports.

Dear Friends,

On February 24, 2023, the G7 Countries (USA, Canada, Germany, France, Italy, UK & Japan – along with the EU) made a statement regarding restrictive measures on Russian Diamonds. They stated that they would work closely to engage key partners in the diamond industry.

This was followed up by another statement on May 19, 2023, saying that they would ‘engage with key partners with the aim of ensuring effective implementation of future restrictive measures, including through tracing technologies.’
On December 6, 2023, similar statements were released by all the G7 nations including the EU.

‘We will introduce import restrictions on non-industrial diamonds, mined, processed, or produced in Russia, by January 1, 2024, followed by further phased restrictions on the import of Russian diamonds processed in third countries targeting March 1, 2024. To further the effectiveness of these measures, those G7 members who are major importers of rough diamonds will establish a robust traceability-based verification and certification mechanism for rough diamonds within the G7 by September 1, 2024, and we will continue to consult with partners, including producing and manufacturing countries on its design and implementation.

We will continue consultations among G7 members and with other partners including producing countries as well as manufacturing countries for comprehensive controls for diamonds produced and processed in third countries on measures for traceability.’

Only the EU have published their plans, which call on all non-Russian diamonds to be routed via Antwerp. It seems that the rest of the G7 countries will follow suit. There are many problems with this proposed solution. While we support the aim of the G7, the solution of funnelling all diamonds through one centre can only cause harm to the diamond trade.

Since the first declaration we, at the WFDB, have worked steadily alongside the WDC to try to find a solution that would satisfy the aims of the G7, but still allow our trade to function efficiently, without undue costs both in time and expense. Meetings were held between the trade and the G7 technical team, but our proposed solutions fell on deaf ears.

Despite our best efforts, the G7 seems determined to implement a system that will harm the flow of rough diamonds from African countries and other non-Russian sources. The proposed G7 solution will bring significantly increased costs to manufacturers and traders and will make non-Russian natural diamonds more expensive and less competitive, at a time when the industry is facing a multitude of challenges.

But we have not given up. We are continuing to work on a proposal that will hopefully unite the industry, which we will present to the G7 team, in the hopes that the industry’s needs will be taken into account.
We will continue to update you about developments concerning the G7 sanctions.

Sincerely,

Yoram Dvash
President
World Federation of Diamond Bourses Author Name
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