16 Aug 2022

There has been a decline in the percentage of diamonds supplied for cutting and polishing in Botswana over the last five years.

Minister of Minerals and Energy, Mr Lefoko Moagi said the value of diamonds supplied for cutting and polishing, as a percentage of the total value of diamonds mined in Botswana, was 25 per cent in 2017, 23 per cent in 2018, 17 per cent in 2019, 16 per cent in each of 2020 and 2021.

Answering a question in Parliament from Maun West MP, Mr Dumelang Saleshando on Monday, Mr Moagi explained that the decline was due to a number of factories closing or scaling down operations in Botswana, citing high costs of manufacturing.

“The high costs were attributable to inter alia the reliability of power, which necessitated investments in back-up power systems, skills and productivity levels,” said the minister.

He added that the scaling down of production was further noted at the height of the COVID-19 pandemic. 

He, however, said more factories were now opening up in the country.

“While there were 25 factories operating last year, currently we have 33 factories with five licensed, but still setting up their operations to commence operations before the end of the year. 

What we are seeing now, especially with new factories, is the adoption of new technologies, which accelerate skills development as well as improve efficiencies and productivity,” said the minister.

He said there was now expectation that the percentage in the total number of diamonds mined, cut and polished in  Botswana would increase substantially. 

He further said the recent improvements in power supply situation would further assist in production costs containment.

Mr Saleshando had asked the minister to state the annual value of diamonds cut and polished in Botswana as a percentage of the total value of diamonds mined in the country over the last five financial years. ends