The new Diamond Trading Policy introduced by the Government of the Republic of Angola in July 2018 is said to have brought about “positive results” – both in terms of gross revenue and tax collections.   

According to a note containing the performance figures released by SODIAM, Angola’s national diamond sales company, and available on the Official Portal of the Government of the Republic of Angola, tax revenues have increased by 41.6% in the last two years. 

“The document indicates that, over that period, gross revenue registered an average annual growth of 8.5 per cent, which compares with the level of 2.3 in the previous period, in 2016 and 2017,” the report on the Angolan Government portal states. 

Further, the notes states that the “ongoing reforms”, also led to an “exponential growth” in tax revenues from the sale of Angolan diamonds, while “bringing competition and transparency to the sector, until then nonexistent”.

During the period 2012-2016, a model of “preferred customer” prevailed and which    represented “a pre-authorised and pre-ordered direct sale procedure”, the document says,  and notes that only those who benefited from this prerogative could buy diamonds from SODIAM, “in addition to benefiting from preferential prices, with a discount on the market value”.

“The realisation that this model “was seriously harmful” to the treasury led the current Executive to approve, in 2018, the new Diamond Marketing Policy currently in force,” the report explains.

Under the new marketing model, the “base sales reference price is previously defined, by agreement of the main players in the process, namely the producer, Sodiam and the Independent appraiser”.

According to the new rules, the current Diamond Marketing Policy will undergo an evaluation, and depending on the results, some changes may be made.