INTERVIEW: Dr M’Zee Fula Ngenge, Chairman of African Diamond Council (ADC)

“The Republic of Angola is not merely open to the idea, but is actively campaigning for foreign investment in manufacturing. The offer is particularly compelling for diamond companies, for which access to rough diamonds is directly tied to local investment”, assures Dr M’Zee Fula Ngenge, Chairman of African Diamond Council (ADC)

Dr M’zée Fula Ngenge is a preeminent authority in the global diamond sector, whose distinguished career spans over four decades as a mining engineer and senior strategy advisor. As Chairman of the African Diamond Council (ADC), he occupies a pivotal role at the nexus of industry, governance, and economic development, serving as a principal liaison between international trade bodies and public and private sector stakeholders. 

Dr. Ngenge’s strategic acumen is evidenced by his seminal work in resource governance. In early 2017, he architected a comprehensive revenue recovery proposal for the Republic of Angola, which catalyzed the implementation of “Operation Transparency.” This assertive policy initiative, launched in late 2018, was internationally lauded for its efficacy in curtailing illegal immigration, suppressing unlawful mineral exploration, and combating environmental crimes and resource plundering.

His leadership portfolio extends to the highest echelons of the industry’s financial and commercial infrastructure. In 2019, he was appointed Chairman and Managing Director of the African International Diamond Exchange (AIDEX), Africa’s paramount source of transparent rough diamond supply for major global bourses. Concurrently, he was entrusted as Chairman of the Board of Trustees for the African Diamond Trust Fund (ADTF), an autonomous financial depository and vault operator dedicated to securing ethically sourced rough diamonds of African origin.

A recognized and battle-tested thought leader in mineral provenance, Dr. Ngenge is the industry’s foremost expert on diamond and gemstone traceability methodologies. His recent work is concentrated on the integration of advanced technologies, which include blockchain and artificial intelligence to establish rigorous standards for electronic data interchange, process mapping, and sustainability documentation. This decade-long pursuit of technological innovation has fundamentally enhanced transparency and operational integrity for major mining corporations and international diamond centers alike.

Dr. Ngenge’s career is defined by a consistent commitment to transforming the African diamond industry through principled leadership, strategic innovation, and unwavering advocacy for ethical provenance.

Here, in an Exclusive Interview with PRECIOUS WORLD, Dr M’Zee, in his inimitable style, explains the scenario that can emerge with India and Angola establishing a partnership in the diamond sector.

Some excerpts …

Of late, Indian companies in the G&J sector have been toying with the idea of shifting their manufacturing base to other countries where the US tariff is lower. While this is still an idea, has Angola taken any steps to invite outsiders to set up units in the country?

Recently, Indian companies in the gold and jewelry sector have been seriously considering the idea of shifting their manufacturing base to other countries with lower U.S. tariffs. While this remains a strategic discussion, Angola has indeed taken concrete and proactive steps to position itself as a destination for such investment, particularly in diamond cutting and manufacturing. The country’s efforts are part of a broader national strategy focused on economic diversification and mineral beneficiation, moving beyond its historical reliance on oil and petroleum as well as extractives refined from those.

The most direct actions have been spearheaded by Angola’s state diamond sector. Sodiam, the national diamond marketing company, has actively invited international manufacturers, including major Indian firms, to establish cutting and polishing facilities within the country. The cornerstone of this strategy is a policy often referred to as “Angola First,” which links access to the nation’s valuable rough diamond production to local value addition. In practice, this means the state-owned mining company, Endiama, prioritizes selling rough diamonds to manufacturers who have a physical operational presence in Angola, creating a powerful incentive for foreign companies to invest in local factories.

To complement the objectives of the Luanda-Bengo Special Economic Zone (ZEE) and to facilitate an additional impetus, the government has developed the Saurimo Diamond Development Hub as a dedicated hub for diamond manufacturing. Companies such as Kapu Gems, Stardiam and KGK led the initial charge to establish operations within Angola and have benefitted from a package of incentives, including significant tax breaks and holidays on corporate income and import duties for machinery. These initiatives also aim to streamline the often complex process of setting up a business through a “one-stop-shop” for licenses and regulations, while providing improved infrastructure like reliable power and secure facilities.

These sector-specific measures are supported by wider reforms to improve Angola’s overall investment climate. The government has revised its Private Investment Law to offer greater protection and incentives to foreign investors, guaranteeing equal treatment and facilitating the repatriation of profits. Under President João Lourenço, there has been a public campaign to combat corruption and increase transparency, especially in the extractive industries. Furthermore, Angola’s engagement in an African Diamond Council (ADC) program has encouraged structural reforms aimed at stabilizing the economy and strengthening the financial sector, all of which are designed to reduce risk for foreign investors.

However, for an Indian jewelry company considering this move, several challenges must be weighed against these incentives. The specialized skills required for high-precision cutting and manufacturing are not yet widespread in Angola’s workforce, which could necessitate significant investment in training. While infrastructure is better within the Special Economic Zone and the Development Hub, it can remain a challenge elsewhere in the country. Although bureaucracy is being addressed, it can still be a discouraging hurdle. It is also important to note that the current, most formalized invitation and incentive packages are primarily targeted at the diamond industry. A company focused solely on gold jewelry would need to engage directly with Angolan authorities to negotiate similar terms under the country’s broader mineral beneficiation policy.

The Republic of Angola is not merely open to the idea, but is actively campaigning for foreign investment in manufacturing. The offer is particularly compelling for diamond companies, for which access to rough diamonds is directly tied to local investment. For the broader gold and jewelry sector, the national policy direction is favorable and improving. The potential for lower US tariffs on goods manufactured in Angola adds a significant financial incentive, making the country a serious subject for feasibility studies and high-level discussions for Indian firms looking to globalize their production base.

African nations benefit from lower U.S. tariffs of up to 10% under trade frameworks like the African Growth and Opportunity Act (AGOA). This could turn into an incentive for relocation by Indian companies. Your opinion?

From my perspective, the potential for Indian companies to relocate manufacturing to African nations in order to benefit from preferential U.S. market access under treaties like the African Growth and Opportunity Act (AGOA) presents a complex strategic equation. This practice, often termed as “tariff jumping,” is driven by the significant advantage of exporting goods to the United States with tariffs eliminated or sharply reduced, sometimes by the full 10% mentioned. This can substantially lower the landed cost of products, making them far more competitive against goods exported directly from India or other Asian manufacturing hubs. The way I see it beyond this primary incentive, such a move offers diversification of a company’s supply chain, aligning with the China Plus One (C+1) strategy many firms are adopting to mitigate geopolitical and operational risks. Furthermore, establishing a presence in Africa can serve as a strategic gateway to the nascent African Continental Free Trade Area (AfCFTA), a single market impressively encompassing over 1.3 billion people, thus offering growth opportunities beyond just the U.S. market. Additional potential benefits include lower local production costs, particularly for labor and land, and various investment incentives often offered by host governments, such as tax holidays. For early movers, there is also the advantage of establishing strong brand recognition and government relationships before a market becomes overcrowded.

In my view however, this strategy is countered by a set of considerable challenges and risks. The most frequently cited obstacle is the state of infrastructure in many eligible African countries. Deficits in reliable electricity, roadways and rail networks, as well as port logistics can introduce inefficiencies that easily negate the cost benefits gained from tariff savings and cheaper labor. Companies must also effectively navigate complex bureaucratic environments, which can be accompanied by governance issues and political instability in certain regions, creating an unpredictable operating climate. While labor may be inexpensive, a significant skills gap often exists, necessitating substantial investment in training and development for the local workforce. The business model itself carries an inherent political risk, as AGOA is a non-reciprocal agreement that requires periodic renewal by the U.S. Congress; though it has enjoyed longstanding bipartisan support, its long-term future is not absolutely guaranteed. Finally, relocation creates geographical distance from the established and dense supplier ecosystems found in India, potentially increasing the cost and lead time for importing necessary raw materials and components.

I firmly believe that the decision for an Indian company to pursue this path is highly specific to its industry, product, and risk tolerance. By my reckoning, it is a strategic trade-off between gaining superior market access and diversification against navigating operational complexities and instability. A successful move requires meticulous due diligence, often starting with a pilot project or joint venture, rather than a full-scale immediate relocation. This dynamic also places indirect pressure on the Indian government to enhance its own domestic manufacturing competitiveness and pursue favorable direct trade agreements to dissuade businesses from moving operations abroad.

Many African countries like Ethiopia, Botswana, Morocco , Nigeria etc have offered financial incentives as well like custom duty, long tax holidays etc. Can you please spell out the incentives offered by Angola for setting-up units in the country?

As I mentioned, Angola has been actively working to diversify its economy away from its traditional reliance on the oil and gas sector. As a key part of this strategy, the government offers a range of substantial financial and legal incentives to attract foreign investment into designated priority sectors.

A fundamental benefit for all approved foreign investors is the guarantee of the right to repatriate capital, including dividends and proceeds from the sale or liquidation of their investment, after all applicable Angolan taxes have been settled. Furthermore, the state accepts international arbitration for resolving disputes, providing a significant layer of security and confidence for international businesses.

Regarding fiscal incentives, Angola offers highly attractive terms and more favorable conditions are being established. A major benefit is an exemption from customs duties on the importation of machinery, equipment, accessories, spare parts, and other capital goods that are necessary for the initial installation and operation of the project and are not produced locally in sufficient quantity or quality. The corporate income tax or imposto Industrial, which carries a standard rate of 25%, can be reduced to as low as 15% for projects deemed to be of strategic importance. Perhaps the most significant incentive is the potential for a prolonged tax holiday, which offers a temporary exemption from corporate income tax altogether. The duration of this holiday is not fixed and is negotiated on a case-by-case basis within an Investment Contract, but it can typically range from three to eight years, with the possibility of being even longer for exceptionally strategic investments.

The value and duration of these incentives are not uniform, yet are carefully calibrated based on the project’s category and location. Projects classified as strategic for economic diversification receive the most favorable terms. I am referring primarily to activities in agriculture, manufacturing, tourism outside of Luanda, technology, education, and health.

To promote balanced regional development, investments made in less economically developed provinces, such as Cuando Cubango, Cunene, or the two Lunda Norte and Lunda Sul provinces, are eligible for enhanced incentives compared to those available for investments in the capital, Luanda.

It is crucial to understand that access to this incentive package is contingent upon the investment project receiving prior approval from the local investment agency. The process differs based on scale, which is a Simplified Regime exists for smaller projects (investments below approximately USD $1 million, while larger projects enter the General Regime, which involves negotiating a custom Investment Contract that legally codifies the specific incentives offered. Therefore, while the framework is designed to be attractive, engaging with the investment agency directly and often securing local legal and financial expertise is an essential step for any investor looking to establish a unit in Angola.

Does Angola support Special Economic Zones ( SEZs) for foreign investors in the diamond manufacturing sector? What are the regulations that govern units in SEZs?

Angola actively supports and encourages foreign investment in diamond manufacturing a dedicated hub specifically for this purpose. The Saurimo Diamond Development Hub is not a generic industrial zone, but a purpose-built ecosystem designed to host the entire diamond value chain, including cutting, polishing, jewelry manufacturing, and ancillary services like grading labs and banking. The government’s clear objective is to transition Angola from a mere exporter of rough diamonds into a major international center for value-added diamond products, and attracting foreign expertise and capital is central to this goal.

The regulatory environment for this zone is established by two key pieces of legislation. Companies operating within this zone benefit from a highly attractive package of incentives designed to make Angola competitive in the global market. This includes a full exemption from Corporate Income Tax for the first ten years of operation, followed by a reduced rate of 10% for the subsequent five years, a significant reduction from the standard national rate of 25%. Furthermore, investors receive exemptions from customs duties on the import of all machinery, equipment, and raw materials essential for their projects, which is critical for importing high-value diamond cutting technology.

Beyond fiscal benefits, the SEZ framework offers crucial operational advantages. Guichê Único is a streamlined system that is designed to minimize bureaucracy for licensing, company setup, and regulatory compliance. Investors also benefit from favorable foreign exchange regulations, including easier access to foreign currency for international transactions and the ability to hold foreign currency accounts, which addresses a historical challenge in Angola’s investment landscape. As I mentioned earlier, the right to repatriate invested capital and dividends is also guaranteed under the law. It is important to note that while the SEZ provides these incentives, companies must still comply with Angola’s national diamond laws and international commitments, including regulations managed by Sodiam and ENDIAMA, and adherence to the industry’s global diamond Certification Scheme. Ultimately, to qualify for these benefits, investors must obtain a license from the SEZ management body and present a viable project aligned with the zone’s objectives, underscoring Angola’s targeted approach to developing its diamond manufacturing sector.

With Africa positioned now as a viable alternative for Indian G&J companies looking to maintain their competitive edge in overseas market, Angola could become a partner for mutual  growth of both the countries. Your views?

It could be argued that the contemporary strategic pivot of Indian Gem & Jewellery enterprises toward Africa is necessitated by the critical dual objectives of supply chain diversification for rough diamonds and the consolidation of a defensible competitive posture in response to global market instabilities. Within this context, Angola emerges not merely as a supplier, but as a potential partner for profound mutual growth. This partnership is built on a foundation of complementary strengths. Angola’s recent and current position as the world’s leading producer of rough diamonds by value, possesses abundant resources from significant kimberlite deposits like the Catoca or Luele mines as well as extensive alluvial fields that are unexplored. Conversely, India brings to the table its unparalleled status as the global manufacturing hub, processing an estimated 92% of the world’s diamonds by volume and 73% by value, alongside a massive and culturally significant domestic consumer market.

The core of this partnership must extend beyond a simple buyer-seller relationship into a vertically integrated alliance. For India, securing long-term contracts and making direct investments in Angolan mining projects provides a critical, ethical, and stable alternative to existing dominant suppliers, thereby de-risking its supply chain.

For Angola, the partnership offers the tangible realization of its national goal of beneficiation, which involves moving beyond raw material extraction to creating local value addition. This is achieved by incentivizing Indian companies to establish cutting and polishing units within Angola, which directly creates local jobs, fosters skills development, and facilitates the transfer of crucial technology. Furthermore, Angola’s significant untapped gold reserves present another avenue for collaboration, supplying raw materials for India’s vast gold jewellery industry.

The role of both governments is pivotal in enabling this particular vision. A robust government-to-government agreement could provide the essential framework, covering aspects like the avoidance of double taxation, protection for Indian investments, and a more simplified visa regime for professionals and technicians. Collaboration on ethical standards is also key, which would integrate Angolan diamond production into a global traceability platforms and would enhance the brand value and marketability of Angolan diamonds globally via direct engagement with the African Diamond Council (ADC). Mutual participation in major trade fairs, like the India International Jewellery Show (IIJS) in Mumbai or events across the African continent hosted by the African Diamond Manufacturers Association (ADMA), would further solidify commercial ties and market access for both nations.

While the opportunity is significant, it is not without its challenges. Angola’s internal infrastructure, such as power and transportation, requires development, though this can be mitigated by starting operations in special economic zones with reliable utilities. Perceptions of bureaucracy, though greatly improved under President João Lourenço’s reform-oriented administration, still necessitate continuous dialogue through joint business councils to address operational hurdles. Despite these challenges, the potential for a symbiotic relationship is clear. For Angola, it means genuine economic development, job creation, and ascent up the value chain. For India, it translates into a secure, diversified supply of rough materials and new investment frontiers. Ultimately, a deeply integrated India-Angola partnership in the Gem & Jewellery sector can serve as a model for South-South cooperation, transforming a transactional dynamic into one of shared, long-term, and equitable growth.

The African Diamond Council (ADC) has been pivotal in promoting ethical sourcing and traceability across the continent. How can Indian manufacturing expertise, particularly in Surat and Mumbai, integrate with the ADC’s initiatives to create a powerful “Source-to-Skillet” narrative that adds significant brand value and consumer trust for diamonds entering markets like the U.S. and EU?

The African Diamond Council’s (ADC) pivotal role in establishing ethical sourcing and traceability protocols across the continent provides a foundational element of trust that is increasingly demanded by the global market. This initiative dovetails perfectly with India’s world-class manufacturing expertise, creating a powerful synergy that can redefine the value proposition of a diamond. The integration point lies in creating a seamless, digitally verifiable chain of custody. The ADC’s work begins at the source, implementing systems to track a diamond’s origin from mines in Africa, ensuring it is conflict-free and adheres to strict environmental and social standards. This data becomes the diamond’s unique ethical fingerprint.

Indian manufacturing expertise, particularly the highly advanced and tech-savvy sectors in Surat and Mumbai, integrates with this by embedding this traceability data directly into the production process. This can be achieved through public blockchain technology that is compatible with private blockchain offerings or other secure digital ledgers, creating an immutable “passport” for each stone. As the rough diamond is planned, cut, polished, and even set into jewellery in India, each step can be recorded onto this digital record. The result is a finished product that comes with a verifiable story: a narrative that confirms it was responsibly mined in Africa under the ADC’s ethical guarantee and transformed by the skilled craftsmanship of India. This “Source-to-Skillet” narrative is a powerful marketing tool that speaks directly to the conscious consumer in markets like the United States and the European Union, who seek transparency, sustainability, and social responsibility. It allows brands to move beyond competing solely on price and instead compete on value and values, building immense consumer trust and allowing them to command a premium for a product with a guaranteed, positive impact.

Given India’s role as the world’s diamond manufacturing hub and the ADC’s mission to enhance beneficiation within Africa, what specific joint initiatives or partnership is the ADC fostering with Indian trade bodies to develop skills, transfer technology, and build manufacturing capacity within nations like Angola to ensure the partnership is truly mutually beneficial in the long term?

The ADC’s mission to enhance beneficiation within Africa is the cornerstone of its partnership with India, ensuring it is a truly symbiotic relationship rather than a purely extractive one. This long-term vision is operationalized through concrete, joint initiatives developed with Indian trade bodies. The strategy is multi-faceted, focusing on human capital, technology, and ecosystem development. A primary initiative is the establishment of Vocational Training Centers of Excellence within Africa, particularly in Angola, developed in partnership with the GJEPC. The curriculum for these centers is designed by Indian master craftsmen, and the program includes a “train-the-trainer” model where experts from both, Surat and Mumbai are deployed to African diamond producing nations, such as Angola for extended periods to up-skill the local workforce, creating a sustainable pipeline of talented African diamantaires.

Beyond training, the ADC actively facilitates knowledge-based Joint Ventures (JVs) between Indian manufacturing firms and local African partners. In these JVs, the Indian partner contributes advanced technology, such as laser cutting machines and planning software, as well as crucial managerial expertise and global market access. The local partner provides infrastructure and the growing local workforce. This model ensures that critical technology transfer and operational knowledge are deeply rooted within African producing nations, rather than just being housed in a foreign-owned enclave. Furthermore, to build leadership for the future, the ADC is developing its “Bridge to India” Scholarship Program, which will sponsor high-potential Angola students at the outset to receive advanced technical and business education at premier Indian institutions like the Indian Institute of Gems and Jewellery (IIGJ). The focus on beneficiation also extends to building ancillary industries, encouraging the local manufacturing of tools, packaging, and other support services. Through this comprehensive approach, the ADC ensures that the partnership delivers tangible, long-term benefits for Africa: job creation, economic diversification, and the development of a complete, value-added diamond ecosystem, while India secures a stable, ethical supply chain and new avenues for growth.