BOTSWANA DIAMOND CENTRE:THE SECOND DIAMOND REVOLUTION

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BOTSWANA DIAMOND CENTRETHE SECOND DIAMOND
REVOLUTION

• BY
• DR. AKOLANG R. TOMBALE
• Botswana Diamond Hub Coordinator

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BOTSWANA LEADING WORLD DIAMOND PRODUCER

• Botswana is a mining country, more importantly a
  diamond mining country, producing on average 30
  million carats per annum since 2004, and
  contributing about 27 of world rough diamonds
  production by value

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PERCENT CONTRIBUTION OF BOTSWANA DIAMOND TO THE
GLOBAL PRODUCTION BY VALUE
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PERCENT CONTRIBUTION OF BOTSWANA DIAMONDS TO THE
GLOBAL PRODUCTION BY CARATS
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CONTRIBUTIONS OF DIAMONDS TO BOTSWANAS ECONOMY

• Diamonds have contributed immensely to the
  economy of Botswana. They have contributed to
  lifting Botswana from one of the poorest
  countries in the world to a mid income economy.
  

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DIAMOND CONTRIBUTION TO BOTSWANA GDP (1981-2006)
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DIAMOND CONTRIBUTION TO FOREIGN EARNINGS 1982
-2007
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CONTRIBUTION OF DIAMONDS TO TOTAL GOVERNMENT
REVENUE
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TRANSFORMATION OF BOTSWANA FROM A MINING COUNTRY
TO A WORLD DIAMOND CENTRE

• In 2002 Botswana Government carried out a review
  of the world diamond industry through L.E.K.
  Consultants, from this study the Government
  decided that Botswana should transform itself
  from a leading diamond producer to a WORLD
  DIAMOND CENTRE

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SOME OF THE REASONS FOR THE DEVELOPMENT OF THE
DIAMOND CENTRE

• Botswana has been marketing its diamonds through
  the De Beers single channel system, at the time
  where De Beers controlled 80 of the World
  diamond market before falling to below 50.
• De Beers efforts to comply with the European and
  United States of America trade competition rules
  meant that increasingly diamond prices will be
  market controlled.

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REASONS FOR DIAMOND CENTRE CONTINUED

• We live in an era where consumers especially the
  large ones are increasingly dictate how products
  are produced.
• Botswana,s main mines which has been producing
  for over 30 years have reached mature status, and
  going forward revenues to Government will reduce
  drastically.
• Producers not affiliated to De Beers not coming
  on stream.

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BASIC FOUNDATIONS OF THE BOTSWANA DIAMOND CENTRE

• Cutting and polishing of diamonds in Botswana to
  increase from US 30 million worth of diamonds in
  2004 to US 550 million by 2010.
• Botswana based cutting and polishing companies
  allocated diamonds for their local factories.

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FOUNDATIONS OF THE DIAMOND CENTRE CONTINUED

• Diamond Trading Botswana was created to sort and
  sell Debswana diamonds and manage local
  sight-holder clients.
• Aggregation to be done in Botswana increasing
  volume of diamonds in and out Botswana although
  marketing still in London.

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CORE ACTIVITIES OF THE BOTSWANA DIAMOND CENTRE
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ROUGH AND POLISHED DIAMOND TRADING CENTRE
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DIAMOND SET JEWELRY MANUFACTURE
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DIAMOND CUTTING AND POLISHING CENTRE
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DIAMOND ANCILLARY BUSINESSES