Namibia Seeks More Control of Its Diamonds
Business Day (Johannesburg)
June 30, 2004
Posted to the web June 30, 2004
Emma Muller
Johannesburg
Prime minister signals policy change
NAMIBIAN Prime Minister TheoBen Gurirab yesterday signalled a wind of change for the country's diamond industry and possibly that of the entire southern African region.
In an interview this week at the opening in Windhoek of the largest diamond cutting and polishing factory in Africa, backed by Israeli entrepreneur Lev Leviev, Gurirab said a process of change had started.
At the moment, De Beers markets the vast bulk of production from Namibia and all the production from Botswana.
Gurirab said his government would be prepared to invoke a specific clause in the Namibian Diamond Act of 1999, which gives the government the right through section 58 to force producers such as NamDeb, the De Beers joint venture, to make rough available to resident diamond manufacturers.
This is in line with Canada's Northwest Territories where producers are effectively forced to supply a portion of their production locally for domestic processing.
"We would ourselves want to do what the Canadians are doing. Once Lev Leviev has made the policy decisions that goods should be supplied by Namibia, we should sit together and arrange that it happens. We would revisit the 10% clause as a way forward to supply Leviev with diamonds.
"Leviev did his part, Namibia must reciprocate," he said.
Gurirab's remarks highlight a wider political ambition in diamond-producing countries such as SA, Angola, Russia and Canada to manufacture diamonds domestically through local supplies and subsequently brand them as diamonds from their country of origin.
As well as the plant in Namibia Leviev is building a factory in Angola.
The arrival of Leviev in Namibia comes at time of growing unease in southern Africa over the way diamonds have been traditionally marketed by De Beers.
SA is reviewing its diamond sector regulations, including the terms on which De Beers and the industry export diamonds.
Official sources in Botswana have said the government is considering selling part of its production on the open market .
Speaking at the official opening of the plant Gurirab said: "You don't realise what you have done for us, Leviev.
"You have reminded us that diamonds in our country belong to our people. There has been deliberate programming, indoctrination and brainwashing."
He said Namibia was told it was not a good place to have a facility like the one which is backed by the Leviev group.
"You have introduced us to our level. You have brought boys and girls from the street. In a matter of months and weeks they are the ones who are cutting and polishing our diamonds. We have now put that lie to rest," he said.
Namibian m inisters in their speeches also emphasised the need to add value to rough diamonds found in Namibia.
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Minister of Trade and Industry Jesaya Nyama said: "To our neighbours Angola and Botswana, we hope you imitate what has been taking place here.
"The time has come to put an end to the export of raw materials."
AI
