Minister Bogolo Kenewendo discussed the recent De Beers contract that increases Botswana’s share of diamond sales. She emphasized the importance of consumer education and ethical sourcing, outlined strategies for market recovery, and shared insights on lab-grown diamonds and future ownership considerations for De Beers.
Bogolo Joy Kenewendo, the Minister of Minerals and Energy for Botswana, recently shared insights at the Jewelers Vigilance Committee’s annual luncheon in New York. Appointed in November, she discussed the implications of Botswana’s new contract with De Beers, her perspective on lab-grown diamonds, and strategies to revive the natural diamond market.
Kenewendo emphasized the American consumer’s lack of awareness regarding the origin of their diamonds, noting that the industry is generally familiar with Botswana. However, confusion persists in understanding whether diamonds are sourced from South Africa, indicating a need for enhanced consumer education and marketing strategies post the recent De Beers agreement.
The new contract increases the Okavango Diamond Company’s (ODC) share from selling 25% to 30% of Debswana’s diamonds upon signing, with increments to 40% in five years and 50% in ten years. This change will involve reassessing sales strategies to avoid market distortions, including shifts towards direct sales rather than solely relying on auctions.
Kenewendo proposed establishing a hallmark similar to Canadamark to symbolize ethical sourcing linked with diamonds from Botswana. This initiative aims to create public recognition of responsible mining practices that bolster consumer confidence.
The contract also establishes a joint marketing fund, which will be governed by a high-level steering committee. This initiative aims to elevate Botswana’s natural diamond market through comprehensive storytelling, emphasizing the diamonds-for-development narrative to enhance consumer engagement.
On the topic of HB Antwerp, Kenewendo confirmed that, currently, there are no agreements or ongoing negotiations regarding a stake acquisition in the company. She addressed industry concerns regarding the efficiency of diamond manufacturing in Botswana, asserting that efforts are underway to improve efficiency while maintaining attractiveness in the market.
Initially apprehensive about lab-grown diamonds, Kenewendo noted signs of recovery in the natural diamond market, particularly in the Middle East and India, highlighting recent growth trends in revenue from natural diamonds in the U.S. She asserted the importance of distinguishing between synthetic and natural diamonds, emphasizing the rarity and value of authentic stones.
Regarding potential changes in De Beers ownership, Kenewendo stated that Botswana is open to exploring opportunities, having recently signed a long-term agreement. She emphasized shared values and stability as priorities for any future owner of De Beers.
Kenewendo expressed concerns about the industry’s struggle to effectively convey the positive impacts of diamonds, citing traceability as a key challenge. To foster appreciation and understanding, she indicated plans to enhance transparency around diamond sourcing while encouraging industry experiences in Botswana.
She concluded by reaffirming her passion for the industry, describing diamonds as integral to Botswana’s future. Committed to rebuilding the market, she iterated the importance of investing in natural diamonds as a lasting value.
Lastly, Kenewendo conveyed that securing the future of Botswana’s diamond industry remains a top priority, suggesting that sustained efforts in marketing and engagement will help revive the sector.
In summary, Minister Bogolo Kenewendo’s interview highlights Botswana’s strategic position in the diamond industry following the new De Beers contract. Key points include increased market share for the Okavango Diamond Company, the introduction of ethical hallmarks, and a commitment to enhancing consumer education. Furthermore, there is cautious optimism regarding the natural diamond market’s recovery amid the challenge posed by lab-grown diamonds. Botswana aims to strengthen its narrative and traceability to ensure the longevity of its diamond industry.
Original Source: www.jckonline.com
