The discovery of diamonds in the late 1960s was without
a doubt Botswana’s most significant development. Through diamonds, the country
has managed to move from a GDP per-capita of $70 to an impressive $17,918 in
the 51 years since it gained independence. The economy has expanded by an
average of 5% per year in that time — a trend that has been attributed to
prudent financial management and forward-looking leaders.
Leading the way
“Botswana was fortunate to have had great leaders since
diamonds were discovered,” says Charles Siwawa, CEO of the Botswana Chamber of
Mines organization. Those leaders have been able to invest the country’s
diamond revenues in growing the economy, lifting other sectors in the process.
Debswana, the mining company the
government owns jointly with De Beers, has sent hundreds of citizens abroad for
engineering and technical courses.
“Remember, when diamonds were discovered,
we did not have engineers and technicians to run the mines. This initiative has
helped a lot,” says Siwawa, whose group is a voice for mining companies in
Botswana.
Debswana owns four diamond mines and
employs over 11,000 people, making it the country’s largest private-sector
employer, according to its corporate affairs manager, Matshidiso Kamona.
Building up the community
The company has also played a meaningful role in
Botswana’s social landscape. It owns two hospitals and, along with De Beers,
has established the Diamond Trust, which funds eco-tourism projects.
Additionally, more than 10 years ago, the government set up the Diamond Hub,
which coordinates economic activity in the sector. The cutting and polishing
industry has created thousands of jobs as well, with 17 companies actively
manufacturing diamonds in the country.
“These companies also source diamonds from
other producers to come and manufacture them here,” says Susan Matlolela, the
Diamond Hub’s deputy coordinator.
In 2013, De Beers transferred its
London-based rough-diamond sales activity to Botswana, creating new jobs and
boosting sectors such as trade, hotels, security and property. The estimated
value of the diamonds sorted, sold and marketed in Botswana is approximately
$7.56 billion (BWP 80 billion) annually.
Still, the industry is facing fresh
challenges that will likely impact state revenue. The way Botswana can continue
to benefit from diamonds, says Kamona, is through diversification of the
economy and within the sector itself.
Image: De BeersArticle from the Rapaport Magazine - Special Supplement Ancient Beauty, Bold Future. To subscribe click here.