De Beers officials said this week during their interim financial results presentation that they expect the fund to target non-mining sectors of the economy to reduce mineral dependence.
The two parties have been engaged in increasingly tense negotiations since 2019, with government pushing for greater concessions that will enable the country to participate deeper down the diamond industry’s value chain, where activities such as cutting and polishing, as well as jewelry design and retail, produce greater values than mining.
Delivering the interim financial results this week, Chief Financial Officer for De Beers, Susanne Swaniker-Tettey said the fund will undergo three distinct phases before starting operations.
The three distinct phases include the design phase, the development phase and the delivery phase. “We want to do things right and ensure that all the necessary processes are followed for effective management of the fund, especially following the right governance structures,” she said. Swaniker-Tettey added the fund will take a different approach to development from all other funds that exist, saying that the new fund is eyeing sectors that are driven by innovation and have the ability to drive mass economic returns.
“The fund will focus on key economic areas such as agriculture and ICT which have the ability to empower the nation and deliver great economic value,” she said. Currently the fund is undergoing the design phase which includes vigorous consultation processes between De Beers and various stakeholders to establish the administrative processes surrounding the management of the fund.
Quizzed on whether the fund cash injection will affect De Beers operations, Executive Vice President at De Beers, Paul Rowley said that in principle the deal was a win win situation with the fund aligning with their motive of creating value in the economy by empowering non-mining sectors. “Businesses are about how you evolve them not about what happens when you push a product and spend money, we are committed to the evolution of Botswana’s economy and that’s what matters,” he said.
