Angolan Diamonds: Smuggling Routes And Destinations

Angola is the third-largest producer of diamonds in Africa, but the industry is blighted by corruption, human rights violations, and diamond smuggling. Diamonds mined during the 20th and 21st-century civil wars in Angola are known as 'conflict diamonds' or 'blood diamonds', and have been used to finance insurgency and fund wars. Despite efforts to clamp down on the trade, such as the Kimberley Process, it is thought that diamonds are smuggled out of Angola and into neighbouring countries, where they are sold on the world market.

Diamonds smuggled into Cameroon

Diamonds smuggled out of Angola are often sent to neighbouring countries, such as the Central African Republic (CAR), and then on to Cameroon.

Cameroon is a key transit point for conflict diamonds from CAR. A 2016 report by Partnership Africa Canada (PAC) found that Cameroon's poor implementation of the Kimberley Process – the international diamond certification scheme meant to stop the trade of conflict diamonds – was facilitating the trade of conflict diamonds from CAR. The report found that Cameroonian traders were buying diamonds from CAR and then transporting them to buying houses in Cameroon's East region. There, the diamonds were "self-declared" as Cameroonian in origin and issued with Kimberley Process Certificates, allowing them to be exported to international markets.

Cameroonian authorities do not appear to be directly involved in the trade. However, the UN has noted that the illicit trade in diamonds is funding major players in the conflict in CAR and increasingly involves Cameroon and Chad. The UN estimates that 140,000 carats of diamonds, valued at $24 million, have been smuggled out of CAR since the 2013 ban on the export of its rough diamonds.

In addition to Cameroon, conflict diamonds from Angola are also smuggled to other neighbouring countries, such as the Democratic Republic of the Congo, Zambia, Namibia, South Africa, and the Republic of the Congo.

Diamonds smuggled into the Democratic Republic of Congo

Angola is the third-largest producer of diamonds in Africa, but the industry has been marred by corruption, human rights violations, and diamond smuggling. The country has lost $375 million annually from diamond smuggling, and the illicit trade has been linked to the funding of armed conflicts in the region.

Diamonds are smuggled out of Angola and into neighbouring countries, including the Democratic Republic of Congo. In 2000, the combined output of diamonds from Angola, the DRC, and the Central African Republic was estimated to be worth close to $2 billion, with only $1 billion accounted for through official exports. The discrepancy suggests that a significant portion of diamonds from these countries is being smuggled across borders.

The Democratic Republic of Congo has a long history of bad governance, corruption, and foreign pillaging of its natural resources. The country's diamond economy is difficult to define accurately due to inadequate controls and a thriving informal market. Diamonds are easily obtained and transported, making them a valuable form of hard currency for both state and non-state actors. The country's informal economy, which includes the diamond trade, has allowed miners and middlemen to survive despite the social upheaval and war that has plagued the region.

The Congolese population has largely retreated from state predation, and the informal economy has become "dollarized" due to massive devaluation and currency manipulation. Strongmen associated with longtime dictator Joseph Mobutu have aligned themselves with criminal networks to exploit the informal commerce, particularly in the diamond industry. The country's diamond mining parastatal, La Société Minière de Bakwanga (MIBA), has seen a steady decline in production over the years, with much of the output being used for the personal enrichment of President Mobutu and his associates.

The illicit diamond trade in the Democratic Republic of Congo is facilitated by lax regulations and low taxes, which attract corrupt international diamond dealers. Congolese diamonds are often smuggled through transit countries such as Rwanda, Burundi, Uganda, Zambia, and Zimbabwe before being sold on the world market. The country's diamond exports are primarily controlled by foreign armies and criminal networks, with little benefit reaching the local population.

Diamonds smuggled into Chad and Sudan

Diamonds smuggled out of Angola are often sent to neighbouring countries. Between $350 million and $420 million worth of Angolan diamonds were smuggled into neighbouring countries in 2000, representing about half of Angola's yearly diamond output.

Some of the countries that Angolan diamonds are smuggled into include Chad and Sudan. In the Central African Republic (CAR), smugglers and traders are thriving in the parallel black market. The CAR is a significant source of diamonds, with the United States Geological Survey estimating that there are 39 million carats of alluvial diamonds left to be mined in the country.

In CAR, the Union of Democratic Forces for Unity (UFDR) has taken control of the diamond-rich village of Sam Ouandja, near the border with Sudan. The UFDR provides security for diamond diggers and dealers in the village, but also extorts money and diamonds from them and forces miners to vacate productive pits. The diamonds from Sam Ouandja are either sent to Bangui by licensed traders or smuggled overland to Nyala in Darfur.

In addition to CAR, individuals close to or part of the Seleka rebels in CAR have confirmed smuggling links with Sudan. One claim states that during Seleka rule, planes from Sudan and other locations in CAR frequently landed directly in Sam Ouandja and Bria to pick up diamonds. Another claim suggests that Nourredine Adam and Oumar Younous, two senior Seleka commanders, travelled frequently to the Middle East via Sudan to sell diamonds to their contacts in Qatar and Dubai.

Overall, the illicit trade in diamonds is helping to finance conflicts and armed groups in CAR and involves neighbouring countries such as Chad and Sudan.

Diamonds smuggled into Qatar and Dubai

Angola is one of Africa's leading diamond mining countries. However, the revenue generated from diamond extraction does little to improve the quality of life for the people who live there. In fact, many find themselves stuck in a vicious cycle of exploitation and abuse.

The extraction and trade of diamonds in Angola are dominated by two markets: the formal extractive industry, which is subject to some level of oversight, and a clandestine market, which is dominated by miners and their sponsors. The latter market involves miners travelling deep into the bush to extract diamonds illegally and then selling them to sponsors, who often provide the miners with essential goods for subsistence.

Diamonds from Angola are smuggled to various destinations, including the Democratic Republic of Congo and Dubai. In the case of the latter, documents are forged to state that the diamonds originated in the DRC, thereby evading custom tariffs and concealing their true provenance. From Dubai, the smuggled diamonds can then be legally exported to other countries.

Dubai is a major hub for the international diamond trade. It is estimated that between 80% to 85% of undeclared African gold goes to the United Arab Emirates, with a total value of up to $35 billion. While the UAE has implemented measures to prevent money laundering in the gold sector, the country's advanced technologies and systems for tracking and authenticating data are applied only to its own records, not those of other countries.

Diamonds smuggled into Belgium

Angola is the third-largest producer of diamonds in Africa, but it has struggled to attract foreign investment due to corruption, human rights violations, and diamond smuggling. The country loses $375 million annually from diamond smuggling. In 2003, the government launched Operation Brilliant, an anti-smuggling investigation that led to the arrest and deportation of 250,000 smugglers between 2003 and 2006. Despite these efforts, diamond smuggling remains a significant issue, with diamonds being smuggled into neighbouring countries and onto international markets.

Belgium has been implicated in the trade of smuggled Angolan diamonds. Antwerp, in particular, has been identified as a hub for the diamond trade, with global connections. In 2013, a group of robbers stole approximately €38,000,000 worth of diamonds from a Swiss-bound plane at Brussels Airport. The heist was carried out with precision, indicating inside knowledge of transfer procedures and timing. While some of the suspects were arrested and diamonds were recovered, the majority of those involved were acquitted.

In addition to traditional smuggling methods, social media platforms like Facebook and WhatsApp have facilitated the illegal diamond trade. Investigators from Global Witness posed as smugglers and easily connected with dealers who sold diamonds in countries like Belgium. This highlights the evolving nature of the black market for conflict diamonds, which continues to thrive despite international efforts to establish legitimate supply chains.

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