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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
Who watches the watchdog?

For a fact, in a democratic society such as Botswana, the media plays a crucial role of being watchdog, holding the powerful to account and exposing all possible wrongdoing for the benefit of the public.There has been a nagging question about who watches the watchdog after all? Perhaps, the investigations into alleged wrongful acts implicating those supposed to be playing the watchdog role will shed more light into what has happened such that the...

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