Mmegi

What is ring-fencing and why does BoB want it?

Curtailed: De Beers will restrain production this year to help clear out overstocking in the midstream and the retail market.  The move may have negative ramifications on Debswana’s workforce PIC: MORERI SEJAKGOMO
Curtailed: De Beers will restrain production this year to help clear out overstocking in the midstream and the retail market. The move may have negative ramifications on Debswana’s workforce PIC: MORERI SEJAKGOMO

At the height of the pandemic, the Bank of Botswana began pushing for a portion of the Pula Fund to be protected from frequent withdrawals. As the diamond slump deepens, the central bank is reigniting the issue. Staff Writer, MBONGENI MGUNI, reports

Anglo American, the majority shareholder in De Beers, on Thursday released figures showing that diamond production in Botswana fell 24% in the first six months of the year when compared to the same period last year. The diamond group which, in partnership with government, mines more than 95% of the country’s stones, also announced that average prices per carat in the first half of the year fell by 20%.

The diamond downturn seen from the second half of last year is persisting, with Anglo American now talking about a “protracted recovery” and saying it would have to further cut production this year, after the downward revision made in the first quarter.

Editor's Comment
Don't let FMD outbreak drag on

Acting Agriculture Minister, Edwin Dikoloti, is right in saying opening an export-ready facility whilst Foot and Mouth Disease (FMD) is still spreading would risk getting the whole country blacklisted before a single carcass leaves the door.A ban like that would break the already stressed nation. So, the postponement, painful as it is, is the right thing to do. The local economy is being squeezed from both ends. FMD has already slammed the door...

Have a Story? Send Us a tip
arrow up