Role of diamond industry reviewed

Global leaders and representatives from the local diamond industry, public and private sectors, De Beers, the Leviev Group of Companies, the Lazar Kaplan International including Martin Rapaport, economists and businesspeople were among those who attended a major gem indaba in Windhoek to review the diamond industry and its role in SADC and come up with resolutions.

The Namibian’s TONDERAI KATSWARA spoke to Namibia’s Diamond Commissioner KENNEDY HAMUTENYA about the significance of the event. Q: What was the main objective of the International Diamond Conference? A: The objective of the conference was to bring diamond industry stakeholders together in Namibia to discuss the subject ‘Diamonds for Development’, particularly from a SADC perspective.The concept of was borne out of the ‘Conflict Diamonds’ debate.SADC countries want to have their diamonds distinguished.Proceeds from our diamonds are used for building schools, hospitals, roads etc as opposed to those of countries such as Liberia and Sierra Leone, where diamonds were used to fuel wars- with the devastating consequences of death, mayhem and destruction.In the Post Kimberley Process era, there have been calls by NGOs and SADC states for diamonds to contribute much more to our countries, in a much more sustainable manner.SADC states have been calling for a significant reduction in the wholesale export our rough diamonds to traditional diamond manufacturing centres – India, Belgium and Israel- for an increase in benefication in Southern Africa, as well as increased indigenous ownership and empowerment in the local diamond industry.Q: Did you, as the organiser, feel that the conference achieved what you had in mind and was the one day sufficient for deliberations? A: I, and many others, were impressed with the outcome of the conference.The quality of the speakers, the discussions and the attendance was impressive.The moderator Chaim Even-Zohar is an author and a diamond expert who is respected throughout the world.He really steered the discussions in the right direction.The issues raised were contextually discussed in-depth and were relevant to the case of Namibia and SADC.I felt that those Namibians who attended the conference were privileged to have an opportunity to interact and listen to the key players in the industry and to learn so much about an industry that is generally perceived to be mysterious.I was also impressed with the manner in which the moderator managed to control the flow of the discussions in a timely and efficient manner.So, yes, one day was more than enough.Time is money and we didn’t want to hold up business people for longer than was necessary.Q: Which issues came out as prominent, and how are you going to address them? A: The issue of the supply of rough diamonds to the local diamond manufacturing factories and how best to develop a downstream industry in SADC.There was consensus that much needs to be done to change the status quo, however, there was divergence in opinion on how best to achieve that objective.There were drastic proposals as well as moderate ones.Nonetheless, Government acknowledged that negotiations with De Beers were in progress and that the issue of supply of rough was one of the agenda items.Q: The issue of adding value to Namibian diamonds locally seemed to be a hot one and generated much talk – what exact progress is being made to see to it that Namibian diamonds are not just exported as rough to the DTC? A: As mentioned, negotiations are now in progress with DTC.GRN has promised that some sort of solution is imminent.I can’t say much more about this issue without risking negotiating in the media, and pre-empting and compromising the negotiations themselves.Q: Is there a way that Namdeb could sell diamonds to local manufacturers, like LLD Diamonds, directly? A: I think that everything is possible.De Beers have indicated that they are not averse to local supply.I think what is at issue now is the terms of the transaction, and I think that is something that should be up to the companies to negotiate, like any other business transaction, on a willing seller, willing buyer basis.Although one cannot discount the increased pressure on government to intervene directly or to use coercive force against De Beers.But I believe that local supply is inevitable.How much and how? I can’t say right now.Q: How did you find the attendance at the conference? A: The room was filled with people from the whole spectrum of the diamond pipeline – from mining, to manufacturing to dealing and jewellery design and so forth, as well as Namibians who aspire to become players in an industry that is traditionally and historically owned by Jews and Indians.The room was packed, and the discussions lively and intense.Q: Who else was involved in organising the conference and how long did it take to prepare and how much did it cost? A: Generally, Namdeb, DTC Valuations Namibia and Ogilvy and Mather, together with the Ministry of Mines and Energy were involved.Other players such as Namcot Diamonds and Hardstone Processing helped through sponsoring the jewellery competition and the auction at the gala dinner respectively.It was a team effort.It took us barely a month to put his thing together and the jewellers had very little time to design and manufacture their pieces.We were working under pressure.Some wanted to postpone the event to next year, but we decided to forge ahead, and I think that was the right decision because we already had key role players in the industry committed and enthusiastic about participating at the watershed event.The Diamond Board for Namibia authorised us to spend close to N$1 million.I think it was value for money.The event definitely put Namibia on the map as a key member of the diamond fraternity and it would attract more attention to Namibia.All eyes in the diamond world are on Southern Africa as the winds of change in this part of the world are bound to shift the centre of gravity of the diamond pipeline.Q: What resolutions came out of the debates? A: It would be unrealistic for anybody to expect general consensus on issues at an indaba such as this one.As you are aware there are diverse and sometimes very conflicting interests in the industry, with the Government caught in the middle, with its own interests as well.This was more than anything a forum for sharing ideas.Some of those ideas will be useful to the Government, some would be useful for prospective entrants into the industry, and others would help different players position and align themselves in line with changing dynamics in an evolving industry that has seen more change across the entire length of the pipeline in the past five years than in all the previous 100 years before that.So we will put together documentation and speeches presented at the Omugongo.These would be circulated to cabinet, within the industry, our neighbouring governments, and to other interested parties.It would then be up to them to digest the contents and to extract what is of benefit to them.Q: Is this kind of conference going to be an annual thing and will it be held in Namibia only? A: The Omugongo is a truly Namibian concept.Other key diamond countries have created and branded their own annual diamond conferences such as the annual Australian Diamond Conference, the International Diamond Conference in Vancouver, the Annual Antwerp Diamond Conference etc.Because the Namibian Omugongo was a major success by world class standards and because it attracted so much international attraction, we are seriously thinking about making it a yearly event that would discuss other key pertinent burning issues pertaining to the growth and development of our diamond industry.Of course, finances would dictate the prospects for and frequency of such events.Q: What was the main objective of the International Diamond Conference? A: The objective of the conference was to bring diamond industry stakeholders together in Namibia to discuss the subject ‘Diamonds for Development’, particularly from a SADC perspective.The concept of was borne out of the ‘Conflict Diamonds’ debate.SADC countries want to have their diamonds distinguished.Proceeds from our diamonds are used for building schools, hospitals, roads etc as opposed to those of countries such as Liberia and Sierra Leone, where diamonds were used to fuel wars- with the devastating consequences of death, mayhem and destruction.In the Post Kimberley Process era, there have been calls by NGOs and SADC states for diamonds to contribute much more to our countries, in a much more sustainable manner.SADC states have been calling for a significant reduction in the wholesale export our rough diamonds to traditional diamond manufacturing centres – India, Belgium and Israel- for an increase in benefication in Southern Africa, as well as increased indigenous ownership and empowerment in the local diamond industry.Q: Did you, as the organiser, feel that the conference achieved what you had in mind and was the one day sufficient for deliberations? A: I, and many others, were impressed with the outcome of the conference.The quality of the speakers, the discussions and the attendance was impressive.The moderator Chaim Even-Zohar is an author and a diamond expert who is respected throughout the world.He really steered the discussions in the right direction.The issues raised were contextually discussed in-depth and were relevant to the case of Namibia and SADC.I felt that those Namibians who attended the conference were privileged to have an opportunity to interact and listen to the key players in the industry and to learn so much about an industry that is generally perceived to be mysterious.I was also impressed with the manner in which the moderator managed to control the flow of the discussions in a timely and efficient manner.So, yes, one day was more than enough.Time is money and we didn’t want to hold up business people for longer than was necessary.Q: Which issues came out as prominent, and how are you going to address them? A: The issue of the supply of rough diamonds to the local diamond manufacturing factories and how best to develop a downstream industry in SADC.There was consensus that much needs to be done to change the status quo, however, there was divergence in opinion on how best to achieve that objective.There were drastic proposals as well as moderate ones.Nonetheless, Government acknowledged that negotiations with De Beers were in progress and that the issue of supply of rough was one of the agenda items.Q: The issue of adding value to Namibian diamonds locally seemed to be a hot one and generated much talk – what exact progress is being made to see to it that Namibian diamonds are not just exported as rough to the DTC? A: As mentioned, negotiations are now in progress with DTC.GRN has promised that some sort of solution is imminent.I can’t say much more about this issue without risking negotiating in the media, and pre-empting and compromising the negotiations themselves.Q: Is there a way that Namdeb could sell diamonds to local manufacturers, like LLD Diamonds, directly? A: I think that everything is possible.De Beers have indicated that they are not averse to local supply.I think what is at issue now is the terms of the transaction, and I think that is something that should be up to the companies to negotiate, like any other business transaction, on a willing seller, willing buyer basis.Although one cannot discount the increased pressure on government to intervene directly or to use coercive force against De Beers.But I believe that local supply is inevitable.How much and how? I can’t say right now.Q: How did you find the attendance at the conference? A: The room was filled with people from the whole spectrum of the diamond pipeline – from mining, to manufacturing to dealing and jewellery design and so forth, as well as Namibians who aspire to become players in an industry that is traditionally and historically owned by Jews and Indians.The room was packed, and the discussions lively and intense.Q: Who else was involved in organising the conference and how long did it take to prepare and how much did it cost? A: Generally, Namdeb, DTC Valuations Namibia and Ogilvy and Mather, together with the Ministry of Mines and Energy were involved.Other players such as Namcot Diamonds and Hardstone Processing helped through sponsoring the jewellery competition and the auction at the gala dinner respectively.It was a team effort.It took us barely a month to put his thing together and the jewellers had very little time to design and manufacture their pieces.We were working under pressure.Some wanted to postpone the event to next year, but we decided to forge ahead, and I think that was the right decision because we already had key role players in the industry committed and enthusiastic about participating at the watershed event.The Diamond Board for Namibia authorised us to spend close to N$1 million.I think it was value for money.The event definitely put Namibia on the map as a key member of the diamond fraternity and it would attract more attention to Namibia.All eyes in the diamond world are on Southern Africa as the winds of change in this part of the world are bound to shift the centre of gravity of the diamond pipeline.Q: What resolutions came out of the debates? A: It would be unrealistic for anybody to expect general consensus on issues at an indaba such as this one.As you are aware there are diverse and sometimes very conflicting interests in the industry, with the Government caught in the middle, with its own interests as well.This was more than anything a forum for sharing ideas.Some of those ideas will be useful to the Government, some would be useful for prospective entrants into the industry, and others would help different players position and align themselves in line with changing dynamics in an evolving industry that has seen more change across the entire length of the pipeline in the past five years than in all the previous 100 years before that. So we will put together documentation and speeches presented at the Omugongo.These would be circulated to cabinet, within the industry, our neighbouring governments, and to other interested parties.It would then be up to them to digest the contents and to extract what is of benefit to them.Q: Is this kind of conference going to be an annual thing and will it be held in Namibia only? A: The Omugongo is a truly Namibian concept.Other key diamond countries have created and branded their own annual diamond conferences such as the annual Australian Diamond Conference, the International Diamond Conference in Vancouver, the Annual Antwerp Diamond Conference etc.Because the Namibian Omugongo was a major success by world class standards and because it attracted so much international attraction, we are seriously thinking about making it a yearly event that would discuss other key pertinent burning issues pertaining to the growth and development of our diamond industry.Of course, finances would dictate the prospects for and frequency of such events.