May 03, 2024
Economy

PM demands more returns on local diamonds

March 13, 2023
PM demands more returns on local diamonds

Prime Minister Saara Kuugongelwa-Amadhila says the country should ramp up production of diamonds and local processing of the gems to maximise profits.

She added that the discovery of the diamond price should result in better returns for the domestic diamonds.

"I am inspired that we can do more moving forward to get more for our resources after noticing the sizable margins of increase in revenue generated as we continue to discover the price,” she said while paying a courtesy visit to NAMDIA on Monday morning.

“The Namibian economy should benefit from this because once we are able to produce and process our diamonds, we won't be as dependent on the prices of rough diamonds on the international market as we have in the past. As a result, when there is a downturn, the economy is shocked, and the government's fiscal policies are disrupted. Because it will advance the industry, I think this is important,” she advised.

The premier added that diamonds are Namibia’s most valuable resource and there was a need to ensure that the gems not only contribute to higher income but also higher growth. Ultimately, she said, this will result in increased employment opportunities, a reduction in poverty, and better welfare conditions for all.

"We take note of the efforts we are making specifically developing these resources, not only here in Namibia but also in support of the government's efforts to make the nation a producer of top-quality diamonds. We should work to build the capacity to mine and process these resources, resulting in a variety of products, with the goal of eventually allowing the nation to import diamonds and process them here," she said.

Kuugongelwa-Amadhila was accompanied by Minister of Mines and Energy Tom Alweedo, who noted that NAMDIA has reached the transition phase of price discovery.

"As with any institution, you must always begin with something, and as you grow, you begin to realise that there are additional things you can or should do that you had not previously considered. We are required by the government to understand the true value of our diamonds. Now that we are aware of this value, what should we do next?" he asked.

Alweendo also boasted that NAMDIA has improved its standing as one of Namibia’s most successful businesses for the past three years, standing and consistently paying dividends.

NAMDIA was established out of an agreement between the government and De Beers in 2016, to verify whether Namibia was getting the best value of its diamonds by going onto the open market.

 

 

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Last modified on Tuesday, 14 March 2023 20:25
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