Zimbabwe 

But with vast deposits of diamonds having recently been discovered in Zimbabwe's controversial Marange diamond minefields, a diamond boom is envisaged to fuel growth of the country.

President Robert Mugabe's cash-strapped coalition government, which desperately needs at least $5 billion to turn around its battered economy, is specifically pinning its hopes of recovery on the diamond boom.

The Zimbabwe coalition government, which was consummated nearly two years ago, has battled to secure international finance largely due to squabbling in the power-sharing process.

But with the discovery of diamonds, President Mugabe has publicly stated that the United States of America, the largest and biggest donor for Zimbabwe, and its Western Allies, should "go to hell" as the nation has found new sources of funding – diamonds.

Mugabe told a gathering of the SADC heads of state and government meeting in the Namibian capital, Windhoek, in August that the region was awash with natural resources.

Analysts said the KPCS, which recently allowed Harare to auction about a million carats from Chiadzwa, directly earning the government $30 million, has buoyed Mugabe's spirits.

Foreign buyers from as far afield as the United States, Lebanon, Israel, Russia and India descended on Harare for the country's first authorized sale of the Marange fields since the partial lifting of a ban imposed over human rights abuses.

"All hopes of economic recovery is on diamonds provided they are sold transparently," said Eric Bloch, an economic commentator based in Zimbabwe's second capital, Bulawayo. "Trade in diamonds has the prospects of uplifting the entire southern region which seems to be rich in diamond deposits. What is needed is for the Southern African leaders to use the revenues earned from the diamond sales for the development of their stagnated economies," said Bloch, adding that international funders were reluctant to bank-roll economies such as Zimbabwe, which are still regarded as rogue states.

The Zimbabwe Government has entered into 50-50 joint ventures with South African and Chinese firms to commercially exploit alluvial diamonds in Marange diamond fields. Mugabe is also on record as having confirmed the presence of Chinese at Marange diamond fields.

Zimbabwe says it has 4.5 million carats of diamonds in its stock, which the government values at $1.7 billion – equivalent to more than half the national budget.

Angola 

The Angola diamond industry, which had been in the doldrums, has been revived in recent months following the 2009 international crisis. Its revival, according to Angolan media reports, is attributed to demand from emerging markets, and particularly China, which is said to be now the biggest buyer of Angolan precious stones.

The diamond company Espirito Santo Commerce (Escom) has indicated that "the tendency for long-term demand continues to present good prospects of success" for Angola.

"Demand will be driven by the eventual recovery of the United States and by growth boosted by China and India," indicate forecasts recently released by the company.

The forecasts indicate that China's market share will double and demand from India should grow 10 percent by 2015.

Escom is participating in the Luo project in partnership with the Russian diamond company Alrosa, while Escom Kimberlites holds group interests in 14 concessions (eight kimberlite and six alluvial) awarded by the Angolan state.

China last year became the top buyer of Angolan diamond production, overtaking the United States. The increase in diamond sales to China is largely due to their use in barter transactions (diamonds in exchange for goods) or for amortizing Angola's debt, indicates the Africa Monitor newsletter.

(Reporting from Zimbabwe)