Sierra Leone’s diamond export revenues collapsed by nearly 80 percent in 2025, official figures showed, dealing a sharp blow to public finances and highlighting the country’s vulnerability to swings in global commodity markets.
Export volumes fell to about 121,000 carats in 2025 from roughly 570,000 carats a year earlier, according to data presented by Mohamed Bah, director of precious minerals trading at the National Minerals Agency.
The value of diamond exports dropped even more steeply, declining from an annual range of US$100 million to US$200 million in recent years to just US$19.5 million by December 2025, Bah said at an annual meeting of the Kimberley Process Civil Society Coalition in Freetown.
“You can imagine the scale of the decline in what the country has been receiving over the years,” Bah told the meeting. “As a result of the decline in diamond prices, government revenues from the sector have dropped drastically, thereby constraining our fiscal space.”
The sharp fall has intensified pressure on government finances in a country where diamond revenues have historically contributed to public spending, local development programmes and community projects in mining areas.
Exposed to commodity volatility
Officials attributed the collapse largely to a global downturn in diamond prices, which has reduced demand and weighed on export earnings across several producing countries.
The slump has exposed Sierra Leone’s heavy dependence on the mining sector and its limited buffers against commodity price volatility. Diamonds, while no longer the dominant export they once were, remain a significant source of foreign exchange and fiscal revenue.
Economists say the revenue shortfall risks squeezing funding for essential public services at a time when the government is already facing competing demands linked to inflation, infrastructure needs and social spending.
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“The shock underlines the fragility of a commodity-dependent economic model,” said one analyst familiar with Sierra Leone’s mining sector, who asked not to be named.
Calls for reform and diversification
Bah said the downturn underscored the need for structural reforms, including stronger revenue management, economic diversification and greater domestic value addition in the mining sector.
“We need stronger revenue management mechanisms and increased value addition to reduce our dependence on raw exports,” he said, urging policymakers to accelerate reforms aimed at broadening the economic base.
He also raised concerns over governance challenges at the international level, pointing to long-standing disagreements within the Kimberley Process over the definition of “conflict diamonds.”
According to Bah, the lack of consensus weakens the credibility of the certification scheme, undermines investor confidence and complicates efforts to strengthen governance and human rights protections in producing countries.
“The ambiguity undermines the Kimberley Process framework,” he said.
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Domestic pressures persist
At the domestic level, Bah cited persistent challenges linked to artisanal mining, environmental degradation and weaknesses in licensing and revenue-sharing arrangements.
“Local communities carry the risks of environmental damage, disrupted livelihoods and social tensions,” he said, adding that benefits from diamond mining often fail to reach affected populations.
Sierra Leone’s diamond sector is dominated by artisanal and small-scale mining, which authorities say is difficult to regulate and prone to informal trading and revenue leakages.
In response to these challenges, the government enacted the Mines and Minerals Development Act in 2023, legislation aimed at strengthening environmental management, improving community participation and formalising benefit-sharing mechanisms.
Bah said the law provides a framework for more transparent community development agreements but stressed that effective implementation would be critical.
Economic shock deepens debate
The scale of the decline represents one of the most severe shocks to Sierra Leone’s diamond sector in recent years and is expected to intensify debate over the country’s long-term development strategy.
As authorities engage international partners on traceability, governance and rights protections, the immediate fiscal gap created by the diamond slump is likely to accelerate calls for economic diversification and reforms to the social contract between mining companies, the state and host communities.
For now, officials say stabilising revenues and restoring confidence in the sector remain key priorities as Sierra Leone navigates the fallout from a sharp downturn in one of its most historic industries.
