Table of Contents
Starting a Diamond Business in Namibia: Dealers, Cutters, and Tool-Making Licences (2026 Guide)
Want to trade rough diamonds or open a polishing factory in Namibia? We break down the costs (N$10,000 for Dealers), the licence types, and the strict Business Plan and Police Clearance requirements.
Namibia produces some of the highest-quality gem diamonds in the world. For jewelers and international traders, the opportunity to source or process these stones locally is immense. However, the industry is one of the most strictly regulated sectors in the economy.
The Ministry of Mines & Energy differentiates clearly between those who trade (buy/sell) and those who manufacture (cut/polish). Applying for the wrong licence can lead to immediate rejection.
If you are searching for “how to start a diamond business in Namibia”, this guide breaks down the three main licence categories, the significant cost differences, and the two critical documents you cannot apply without.
1. The 3 Types of Licences (Dealer vs. Cutter)
Under the Diamond Act, 1999, you must define exactly what you intend to do with the diamonds. There is no “general” diamond licence; you must choose one of the following:
A. Dealer’s Licence (For Traders)
This is the most sought-after licence for international buyers. It entitles the holder to carry on business as a buyer, seller, and exporter of rough diamonds. It is strictly for trading unpolished stones.
B. Cutter’s Licence (For Manufacturers)
This licence is for beneficiation. It entitles the holder to polish diamonds for the purpose of business or trade. If you plan to set up a factory to cut rough stones into gems, this is the licence you need.
C. Tool-making Licence (Industrial)
This is a niche licence. It entitles the holder to set unpolished diamonds in tools or implements, or to crush diamonds for industrial trade purposes (e.g., making diamond-tipped drill bits).
2. The Cost of Entry When Starting a Diamond Business in Namibia (Fees & Validity)
The government encourages local manufacturing (cutting) over raw export (dealing). This policy is reflected in the fee structure, where Dealers pay significantly more than Cutters.
| Licence Type | Annual Fee | Validity Period |
|---|---|---|
| Dealer’s Licence | N$10,000.00 | 5 Years |
| Cutter’s Licence | N$1,500.00 | 10 Years |
| Tool-making Licence | N$1,500.00 | 5 Years |
Note: All applications for Starting a Diamond Business in Namibia also require a non-refundable application fee of N$500.00.
3. Critical Requirements When Starting a Diamond Business in Namibia: Police & Business Plan
The Diamond Commissioner evaluates applications based on strict security and economic criteria. To pass the evaluation, your application packet must include:
1. The “Clean” Police Clearance
You must submit an Original Police Clearance Certificate. The Ministry has a zero-tolerance policy: if you have any record of criminal offences—especially related to theft, fraud, or illicit dealings—your application will be rejected immediately under Section 48 of the Diamond Act.
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2. The Detailed Business Plan
You cannot simply fill out a form; you must prove your business is viable. Your plan must demonstrate:
- Financial Viability: Proof of working capital and insurance arrangements.
- Supply Chain: A clear indication of your source(s) of rough diamonds.
- Market: Proof of market and distribution channels (who are you selling to?).
- Technical Expertise: The experience of your key personnel (e.g., master cutters).
4. Evaluation & Approval
Once submitted to the Office of the Minister using Form 1, the Department of Diamond Affairs checks if all documents (including Tax Certificates and Company Registration) are attached.
If approved, you are not finished yet. Before the physical licence is handed over, you must meet two final conditions:
- Premises Approval: You must be issued a Business Premises Certificate.
- Security Plan: The Minister must approve your security plan (often involving police vetting of your safe, cameras, and access control).
Wait Time: Applicants should expect feedback on their licence application within 6 months.
Enter the Diamond Market with Confidence (Starting a Diamond Business in Namibia)
The paperwork for diamond licences is complex and the scrutiny is high. Elidge Business Solutions assists with Business Plans, Police Clearances, and Ministry compliance. Contact Our Team
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Stop Waiting on Stagnant Markets.
Strike Gold in Africa.
While Western economies face saturation and sluggish growth, African markets are booming. Namibia offers a highly politically stable, safe, business-friendly gateway to the African continent.
Join global investors scaling across 54 African jurisdictions with our business registration services.
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