De Beers hopeful as sales tick up
Friday, September 18, 2020
Grinding along: Debswana is operational but eyeing lower production this year PIC: MORERI SEJAKGOMO
The coronavirus (COVID-19) restrictions in its producer nations and a drop in global demand saw De Beers’ revenue slump in the first half of the year by 54% year-on-year to $1.2 billion (P13.2 billion).
De Beers, which is a 50-50 partner with government in Debswana, is amongst the principal anchors of government revenues through dividends, royalties and taxes.
Whilst celebrating milestones in inclusivity, with notably P5 billion awarded to vulnerable groups, the report sounds a 'siren' on a dangerous and growing trend: the ballooning use of micro-procurement. That this method, designed for small-scale, efficient purchases, now accounts for a staggering 25% (P8 billion) of total procurement value is not a sign of agility, but a 'red flag'. The PPRA’s warning is unequivocal and must be...