Israeli businessmen eye Botswana gems

A group of Israeli businessmen were in Botswana last week exploring investment opportunities in the diamond industry.

The team was interested in value-adding investments in the areas of diamond cutting and polishing and manufacturing of diamond jewellery. The investors from Leviev Group of Companies (LGC) want to invest an initial capital of US$10 million and employ at least 10 000 people at the start.They intend to cut Botswana’s rough diamonds currently sold in its entirety by Debswana to De Beers’ subsidiary, the Diamond Trading Company (DTC) in London.The Israeli investors are said to have held meetings with top government officials including at least one cabinet minister.Sources privy to the venture say the Leviev diamond cutting and manufacturing proposals have become an instant hit with government and has proved too good to resist.Sources close to government revealed that the company’s proposal to add value to the country’s diamonds extend beyond cutting and polishing.It is said the venture will include not only manufacturing but also branding and improvement of pricing of diamonds, which can only be reliably done after cutting.The representatives of the Leviev Group impressed upon the authorities that adding value to diamonds would create other downstream industries.The Israelis want to encourage the establishment of retail shops dealing in diamond jewellery to be strategically located in main tourist attraction centres in order to capitalise on the growing tourist market.Leviev seeks to access about 10 per cent of Botswana’s rough diamond production for their local cutting and jewellery manufacturing concern.Meanwhile, the Minister of Minerals Energy and Water Affairs Boometswe Mokgothu has denied hosting officials of the Leviev Group.He added that they might have met some of his subordinates without his knowledge.But he said the Leviev proposal to cut, polish and manufacture jewellery in Botswana “is what the government is looking for as we want to add value to our minerals and generally create additional revenue and employment”.He said Botswana’s trading agreement with De Beers provides a window to divert part of the local rough diamond production for value-adding activities, should any investor come up with a serious proposal.The Director of Mineral Affairs Jacob Thamage confirmed hosting the Leviev representatives but said they were merely on a courtesy call and they are expected to give feedback to government.He revealed that the President of Lazare Kaplan Morris Templesman was in town to scout for the possibility of starting another diamond polishing company in Botswana after the company’s disastrous performance in Molepolole.The Leviev Group of Companies (LGC) is based in Ramat-Gan in Israel and is a leading shareholder in Africa Israel Investments, an international holding company and one of the largest and most dynamic investment groups in Israel.It is owned by Israeli billionaire Lev Leviev.It specialises in the cutting and polishing of rough diamonds.The company also has interests in overseas real estate, communications, construction, tourism, leisure, energy, fashion and beach-ware.The Leviev group is also in partnership with the Namibian government in the exploration and mining of Namibian off-shore diamond deposits.The Leviev Group adds value to diamonds worth more than US$1 billion per annum.The company has polishing businesses in Russia, India, China, South Africa, Ukraine and Armenia.It has also encroached into De Beers’ business in Angola, the DRC and Russia.It took over the spoils when De Beers’s deals went sour in these countries.Namibia is now the third country after Angola and Russia where the Leviev Group has pulled the rug under De Beers’ feet.-MmegiThe investors from Leviev Group of Companies (LGC) want to invest an initial capital of US$10 million and employ at least 10 000 people at the start. They intend to cut Botswana’s rough diamonds currently sold in its entirety by Debswana to De Beers’ subsidiary, the Diamond Trading Company (DTC) in London. The Israeli investors are said to have held meetings with top government officials including at least one cabinet minister. Sources privy to the venture say the Leviev diamond cutting and manufacturing proposals have become an instant hit with government and has proved too good to resist. Sources close to government revealed that the company’s proposal to add value to the country’s diamonds extend beyond cutting and polishing. It is said the venture will include not only manufacturing but also branding and improvement of pricing of diamonds, which can only be reliably done after cutting. The representatives of the Leviev Group impressed upon the authorities that adding value to diamonds would create other downstream industries. The Israelis want to encourage the establishment of retail shops dealing in diamond jewellery to be strategically located in main tourist attraction centres in order to capitalise on the growing tourist market. Leviev seeks to access about 10 per cent of Botswana’s rough diamond production for their local cutting and jewellery manufacturing concern. Meanwhile, the Minister of Minerals Energy and Water Affairs Boometswe Mokgothu has denied hosting officials of the Leviev Group. He added that they might have met some of his subordinates without his knowledge. But he said the Leviev proposal to cut, polish and manufacture jewellery in Botswana “is what the government is looking for as we want to add value to our minerals and generally create additional revenue and employment”. He said Botswana’s trading agreement with De Beers provides a window to divert part of the local rough diamond production for value-adding activities, should any investor come up with a serious proposal. The Director of Mineral Affairs Jacob Thamage confirmed hosting the Leviev representatives but said they were merely on a courtesy call and they are expected to give feedback to government. He revealed that the President of Lazare Kaplan Morris Templesman was in town to scout for the possibility of starting another diamond polishing company in Botswana after the company’s disastrous performance in Molepolole. The Leviev Group of Companies (LGC) is based in Ramat-Gan in Israel and is a leading shareholder in Africa Israel Investments, an international holding company and one of the largest and most dynamic investment groups in Israel. It is owned by Israeli billionaire Lev Leviev. It specialises in the cutting and polishing of rough diamonds. The company also has interests in overseas real estate, communications, construction, tourism, leisure, energy, fashion and beach-ware. The Leviev group is also in partnership with the Namibian government in the exploration and mining of Namibian off-shore diamond deposits. The Leviev Group adds value to diamonds worth more than US$1 billion per annum. The company has polishing businesses in Russia, India, China, South Africa, Ukraine and Armenia. It has also encroached into De Beers’ business in Angola, the DRC and Russia. It took over the spoils when De Beers’s deals went sour in these countries. Namibia is now the third country after Angola and Russia where the Leviev Group has pulled the rug under De Beers’ feet. -Mmegi