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As Botswana seeks a greater ownership stake in De Beers and Angola eyes a potential interest, diamond veteran Martyn Charles Marriott is advocating for a radical return to industry collaboration, proposing a diamond equivalent of OPEC to stabilize the fragmented market.
Marriott, a former De Beers executive and key consultant to Botswana’s government, cautioned the nation against seeking an entirely independent path. He warned in an article on the International Diamond Manufacturers website that going it alone risks “putting all its eggs into one basket.”
“To my mind, this could be an opportunity to return to old strengths and disciplines. Some sort of OPEC for diamonds that could provide a basis for the future,” Marriott proposes.
The Case for Collaboration
Marriott argues that the diamond market’s current weakness stems from fragmentation, while its historic strength was built on a collaborative model, citing the success of the former Central Selling Organisation (CSO). The CSO maintained market discipline through a strategic stockpile and quota system, ensuring a crucial supply-demand balance.
He noted that the current deal between Botswana and De Beers, which directs 80% of mine profits to Botswana, is a “fantastic” arrangement that far surpasses industry norms.
Marriott recalls how his consultancy work in Botswana from 1970 to 1983 helped secure a highly favorable profit share for the government by leveraging the CSO system. He was instrumental in establishing the initial 50/50 joint venture for mine development.
Past Warnings and Future Strategy
The luminary, who also helped establish the Kimberley Process and restored Angola’s diamond industry, reflects on the past, noting that the market began to destabilize in 1986 when Argyle and Russia broke from the collaborative structure, a trend exacerbated by new Canadian mines and the rise of synthetic diamonds.
While Marriott admitted he previously opposed Botswana’s push for local processing—preferring a sovereign wealth fund and investment in other sectors like cattle and tourism—he now sees the convergence of African interests as a unique chance to restore market strength.
The proposed African cooperation, a potential diamond cartel, aims to bring back the market control and marketing prowess—including the “unforgettable advertising campaigns”—that historically sustained the industry’s value proposition. The key question now is whether major African producers will heed the call to unite their interests for collective market stability.
