Connect with us

Hi, what are you looking for?

Business

A glimmer of hope

A glimmer of hope
De Beers CEO: Cleaver

Diamond sales improve, but De Beers remains cautious

Following a disastrous start to the year, diamond sales have started to pick up ahead of the upcoming holiday season.

De Beers’ latest rough diamond sales value for the eighth cycle indicate that there has been an impressive turnaround in rough diamond sales, even surpassing figures recorded in the same period last year.

Rough diamond sales from De Beers for the eighth cycle amounted to $467 million, an improvement from $334 million recorded in the previous cycle, even better than $297 million recorded in the eighth cycle in 2019.

The diamond sector, of which Botswana government derives much of its revenue, has been under heavy strain since last year, and the problems were further compounded by the outbreak of the Covid-19 pandemic.

The effects of the underperformance of the mining industry, especially diamonds, were documented in recent data from Statistics Botswana which showed that diamond production in carats went down by 67 percent during the second quarter of the year.

The government data collecting agency noted that diamonds are luxury goods and therefore are bound to fluctuate due to the appetite of reliable customers as the world is highly affected by the outbreak of coronavirus pandemic.

Advertisement. Scroll to continue reading.

Now there seems to be light at the end of the tunnel as shown by the steady improvement in diamond sales by De Beers, which together with the government of Botswana operate in a 50/50 joint venture, Debswana.

The diamond group says owing to the restrictions on the movement of people and products in various jurisdictions around the globe, it has continued to implement a various approach to rough diamond sales during the eighth sales cycle of 2020.

This included extending the sighting event beyond its normal week-long duration.

De Beers Chief Executive Officer (CEO), Bruce Cleaver said the Group continues to see a steady improvement in demand for rough diamonds in the eighth cycle of the year, with cutters and polishers increasing their purchases as retail orders come through ahead of the upcoming Christmas holiday season.

“It’s encouraging to see these demand trends, but these are still early days and there is a long way to go before we can be sure of a sustained recovery in trading conditions,” said Cleaver.

The diamond industry remains a key driver of the local economy and for the 2021 financial period, the government had envisaged receiving P20 billion from diamond sales.

Owing to the outbreak of the pandemic, Minister of Finance and Economic Development, Dr Thapelo Matsheka, previously told the media that the ministry has since revised the figure P6.7 billion, meaning a loss of P13.3 billion.

Advertisement. Scroll to continue reading.

Furthermore, he said taxes and levies from diamonds were expected to fall from P14 billion to P12 billion, while Value Added Tax (VAT) is expected to drop from P8.6 billion to P7.6 billion during the 2020/2021 financial year.

Click to comment

Leave a Reply

Your email address will not be published. Required fields are marked *

Advertisement
Advertisement
Advertisement

You May Also Like

News

Old Naledi Police are investigating two cases in which two men were found dead behind Fairgrounds Mall and Kgale Hill. Kgale death incident is...

Entertainment

Local Poet turned businesswoman Berry Heart is not amused by some people in her circle of friends. This week she spoke out on social...

Entertainment

Shaya has been a close follower of BDP’S former Minister Alfred Madigela. Ali, as his close friends call him this week announced his retirement...

Entertainment

Bringing calm to BBS Following the headline-making boardroom squabbles that engulfed BBS Limited throughout April, Bernard Mzizi was identified as the man to rescue...

Entertainment

Despite his hectic academic schedule, a final-year Baisago University student has still found time to write and publish a book. The impressive Tumelo Abotseng,...

Entertainment

Funnyman Ras Doko has taken social media by storm. His unique brand of comedy has seen his popularity soar. Quiet exceptional considering that he...

Business

An Organic drive on the road to Agric success In this installment of Meet the Boss, Voice Money’s KABELO ADAMSON speaks to Lesego Elijah,...

Business

A guide to eating out in Francistown) The scent of sizzling boerewors drifts across the spacious yard like smoke from a campsite braai and...

Politics

The Botswana National Front (BNF) will embark on a massive recruitment drive as they look to attract new blood to the party. Addressing the...

Entertainment

Popular music producer and singer, Dr. Tawanda, has teamed up with his daughter, 17-year-old Tadiwawanashe Kaisara (Princes Takana) on a Gospel single titled ‘Pagomo’....

Entertainment

40-year-old Thabo Osekeng is one of the most sought-after veteran celebrity sports presenters in the country. As live local football continues to be in...

Entertainment

The Covid-19 pandemic has forced many people, especially those in the entertainment industry, to look elsewhere for a living. One notable figure is Clement...

Entertainment

With close to 200 000 followers on social media pint-sized singing sensation, Dato Seiko has been earmarked as the next big thing in Botswana...

Entertainment

Hot on the heels of her last single, Drum Queen BW (Gonewa Mojumi) is poised to release another track, ‘Banna Wee’. The 25-year-old Serowe-born...

Entertainment

Legendary guitarist, Kapenda Katuta, has released an 11-song instrumental album. Engineered by Alfredo Mosimanegape, the songs were recorded live at Masa Square. The Afro...

Business

CCA approves Puma Energy takeover by Singapore company The Competition and Consumer Authority (CCA) has unconditionally approved the takeover of Puma Energy by Singapore-based...

Advertisement

Copyright © TheVoiceBW. (Since1993) made with ❤️ in Botswana.