14 Mar 2022

President Dr Mokgweetsi Masisi has implored investors in the diamond industry to support Botswana’s beneficiation drive.

Addressing De Beers Client Companies in Dubai on Sunday as part of the ongoing quest to attract investors to the diamond value-chain, Dr Masisi said there were immense opportunities that remained untapped in the sector.

They included setting up additional cutting and polishing factories and up-scaling existing ones, establishing secondary rough trading platforms such as a diamond or multi-commodity exchange as well as jewellery manufacturing, he said.

The President said other opportunities were downstream activities such as banking and finance insurance, security, hotels, training facilities, diamond industry consulting, equipment/consumables manufacturing and supplies. 

There was therefore an urgent need for all in the diamond industry to play a meaningful role in the development of the sector which he said would make the diamond industry sustainable and globally competitive beyond the resource’s lifespan, he said.

Dr Masisi said indications were that diamond resources could take the country to around 2044. 

He said government was in the process of crafting a comprehensive beneficiation strategy to promote greater citizen participation in the diamond sector; increase income from diamond-related activities and utilisation of proceeds to pursue economic diversification. 

The diamataires heard that Botswana had a very competitive mineral policy with a strong fiscal regime, security of tenure, efficient administrative services, transparent and open processes and respect for the rule of law. 

“These, coupled with our political stability, availability of infrastructure and high literacy rate, zero tolerance for corruption, as well as our continued Investment Grade sovereign credit ratings by Moody’s and Standard & Poor’s should persuade you to consider Botswana as an ideal partner,” Dr Masisi stated.

He also stated that Botswana diamonds proceeds had been used to build physical infrastructure, develop national policies and strategies, efficient structures, processes and systems as well as human capital. 

The President however said despite being the world’s biggest diamond producer by value, Botswana currently held only about  12 per cent share of global diamond exploration expenditure and a 24 per cent share of global rough production by value. 

At actual trading level, inclusive of cutting and polishing, Botswana was slightly above two per cent in terms of global output share while local manufacturing stood at around 55 per cent, well below the agreed target of 80 per cent, said Dr Masisi. 

“At the tail-end of the spectrum, which is jewellery manufacturing activities, Botswana’s participation remains very limited,” he stated. 

De Beers Group CEO, Mr Bruce Cleaver concurred with the President that Botswana presented enormous avenues for growth and diversification.

Botswana, he said, had become the centre of gravity for a vital part of international rough diamonds trade and had grown to be synonymous with the global diamond sector.

He told investors that Botswana’s share of global supply had rendered it the cornerstone of the diamond industry and that the country had helped to shape the sector through its role in trade organisations such as the Kimberly process.

“Botswana has supported our ability to communicate the narrative of the positive impact of natural diamonds on the people and the places where they are found,” Mr Cleaver said. Ends