Botswana's diamonds under spotlight

MONKAGEDI GAOTLHOBOGWE
Correspondent | Wednesday October 10, 2007 00:00

 

The country should use such conferences as a forum to tell its undiluted story regarding what it has to offer the world as a key player in the global diamond trade, Tombale said.

He was speaking ahead of next week's international diamonds conference in Antwerp, Belgium, where DTC Botswana and its ancillaries in Namibia and South Africa will be on the agenda.

He was also responding to a statement released by the conveners of the conference questioning Botswana's capacity as the new centre of the diamond trade.

'Perhaps we should host several of these conferences ourselves in the future not only to lure diamond companies to Botswana, but to reassure (ourselves) that Botswana has the capacity to deliver as the new world diamond center,' says Tombale.

He admits that European powers that have been centres of the diamond industry may feel threatened by steps taken by Botswana; he assured them that Botswana does not intend to upstage anyone.

'Diamonds are not infinite resources,' Tombale observes. 'But when they finally run out, we do not want to remain with just empty pits. Diamonds can help us diversify the future of the industry and De Beers has supported us in our move to diversify our economy from just being a diamond producer,' Tombale says.

'We wish European countries dependent on the diamond industry would help us achieve this dream because we need them on board. We do not want to be viewed as a threat to anyone.' Botswana will be represented by Minister Ponatshego Kedikilwe and key officials from the Ministry of Minerals, Energy and Water Resources at the Antwerp conference.

Tombale is hoping that Botswana's cutting and polishing companies, four of which originate from Belgium, will also be in attendance.

Sixteen cutting and polishing companies have so far been registered in Botswana, while more are expected to be licensed in the New Year.

Tombale was asked to respond to a press statement released in Belgium casting doubt on Botswana's capacity to be the new centre of the diamond trade.

'Questions have been raised about the viability of the fledgling African cutting industry, which faces stiff competition from India and China, and currently lacks the physical and financial infrastructures available elsewhere,' the statement reads in part.

It is feared that a number of invited speakers at the conference will dismiss the Botswana project and discourage any further interest in investing in the country. Notable among such speakers will be representatives of Canadian and Australian diamond companies, which have resolutely placed themselves to compete with Botswana.

'We are witnessing the beginning of a process that we know will change the way in which the diamond industry has operated for more than a century, but there are very real questions about the degree of change and what effects it will have on the business and the diamond market,' Freddy J. Hanard says in the statement. 'These changes are forcing members of our industry to question how and where they will obtain rough supply in the future, and where they will process the diamonds. All these issues will be addressed at the conference in Antwerp.'

Hanard is the CEO of the Antwerp World Diamond Centre, the organiser of the Antwerp Diamond Conference.

The strident statement warns that the need to secure a greater portion of the diamond value chain is an issue of critical economic and political importance in Botswana, South Africa, Namibia and Angola, which together supply more than 50 percent of the rough diamonds flowing into the world pipeline each year.