Diamond cutting industry on recovery path
Pauline Dikuelo | Wednesday June 28, 2017 16:54
Speaking at the Botswana and Japan business forum, deputy permanent secretary in the Ministry of Mineral Resources, Green Technology and Energy Security, Moremi Phiri said about $808 million worth of rough diamonds were supplied to the industry in the past year, which was an increase when compared to $502 million recorded in 2015.
In 2014, the industry was allocated diamonds worth $936 million.
“The industry has managed to bounce back and we are hoping to see the performance improve this year,” Phiri said. According to Phiri, currently there are 17 manufacturing and diamond polishing companies locally employing about 2,025 people with about 25 of them being foreigners.
At its peak the industry employed about 3,700 workers with more than 20 companies in operation.
In the year 2015, the industry had massive retrenchments in companies like Moti Ganz, Leo Schachter & Company, Eurostar Diamonds, Shrenuj, Safdico, Zebra, Dalumni, Tiffany’s, and Diacore while Teemane, DMB just to mention a few closed shop.
Furthermore, he told the Japanese delegation that there is a lot that can be explored in the mining industry, which include supply of mineral plant equipment parts as well as manufacturing of supply of commercial explosives for use in the mining sector.
“There are a lot of business opportunities which exist in this industry. In regard to energy, we are having a lot of work to come up with energy security and we invite prospective developers to engage locals and work together to come up with projects in green technology,” he said.
In addition, he said his ministry has refined and focused on a 2017 to 2023 mining strategy aimed at catapulting Botswana to being one of the top 10 mining destinations of choice by the end of the period. The strategy would also ensure that it accords potential investors affordable access to supply in every industry.
“We are working on legislation changes in Mines, Minerals and Precious Stones Acts to remove obstacles that would hinder progress in the sector, which is going to be discussed in the coming Parliament in July,” he said.
On her part, the Ministry of Investment, Trade and Industry permanent secretary, Peggy Serame said despite the long standing bilateral relations between Botswana and Japan, trade has remained low with trade balance ‘understandably’ in favour of Japan.
Serame said trade figures show that in 2016, Botswana’s imports from Japan were worth $39 million whilst $12.6 million worth of goods were exported resulting in a trade deficit of $26.4 million.