ABN AMRO opens branch in Botswana

THE Dutch ABN AMRO bank opened a new branch in Gaborone, symbolising ‘a giant leap in the development of Botswana’s diamond industry,’ as described by the country’s Vice President Mompati Merafhe.

ABN AMRO Botswana’s presence will help fortify the country’s Diamond Hub, co-ordinated by Akalong Tombale, as it will provide financing to the downstream industry.As part of strengthening Botswana’s status as an up-and-coming diamond trading centre, as opposed to just a diamond producer, ABN AMRO’s International Diamond and Jewellery Group is closing its Johannesburg office and will use Botswana from hereon out as its African base. Therefore, the bank will have two licences – one for banking services and one for international business.Through a joint venture with Lazare Kaplan International and the Overseas Private Investment Corporation (OPIC), the bank will provide up to US$83 million in revolving credits as part of the total facility to local DTC sightholders, reports Mmegi Online. The partnership involves a US$333 million revolving facility in which OPIC will share credit risk for up to US$250 million in loans to Botswana-based diamond polishing companies, according to Mmegi Online.The Vice President told the Sunday Standard that the government anticipates that employment created primarily in diamond cutting, polishing, sales and marketing will lead to a 30 per cent increase in local diamond industry jobs and a 10 per cent increase in the country’s total number of manufacturing jobs.- diamondintelligence.com