ODC opens trading platform in Dubai
Mbongeni Mguni | Monday October 18, 2021 06:00
Prior to the latest development, buyers of ODC’s rough diamonds have bid online, following the viewing of the lots in Gaborone. Last year, however, COVID-19 closed local borders and forced the suspension of sales in April and June, resulting in the trader establishing a viewing and sales platform in Antwerp, Belgium.
This week, the ODC announced a partnership with the Dubai Multi-Commodities Centre (DMCC) which will allow rough diamonds from Botswana to be viewed and sold to buyers in that country. Established by the United Arab Emirates government, DMCC is a state-of-the-art trading complex in Dubai, a major city for trade in gold and diamonds with more than $75 billion in annual values.
Speaking at the launch of the new platform on Tuesday in Dubai, Mineral Resources, Green Technology and Energy Security, Lefoko Moagi said the DMCC deal would expand the country’s growing footprint in the diamond industry and establish Botswana as the go-to-market for the sourcing of diamonds and associated business ventures.
“DMCC offers the ODC the opportunity to access more than 1,000 domestic and international precious stone companies doing business at the heart of the region’s diamond trade,” he said. “We believe through this diamond viewing centre, Botswana will get maximum exposure in the UAE leading to more visitors not only for diamond trading but also for our pristine tourism and other business opportunities.”
Moagi said Botswana expects to leverage on Dubai as a diamond gateway, to bring a large number of industrial players regularly to participate in the country’s diamond sales.
“We hope the impact of this will grow Botswana diamonds’ network and also bring investment and trade in other sectors in Botswana,” he said.
ODC managing director, Mmetla Masire said as a company that competes in the global market, the state diamond trader should be able to secure customers from across the world.
“We believe the DMCC’s experience and our local expertise can make an ideal partnership for ODC,” he said.
Established in 2013, the ODC is entitled to a portion of Debswana’s production, which it purchases and resells independently. ODC is ranked the fifth largest diamond trader in the world with average sales of more than $500 million annually.
Last year, market interruptions caused by COVID-19 led to ODC’s sales falling to $206.2 million, from $440.3 million in 2019.