Zaamwani says crisis comes with opportunity

THE global financial crisis, which has dealt a severe blow to the world’s diamond industry, has also provided an opportunity for the alignment and consolidation of the industry.

This was said last week by Namdeb MD Inge Zaamwani-Kamwi, when she addressed the Kimberley Process’s 6th Intersessional Meeting on the impact of the economic downturn on the diamond industry.In her address, Zaamwani-Kamwi called on the support and co-operation of the different players in the diamond business, stating that this was crucial to the survival as an industry.’We are living in extraordinary times which require extraordinary action from all of us. We must simplify our internal processes to enable us to expedite decision making for flexible and innovative strategies. We cannot afford to stifle, or even worse, force companies into premature foreclosure through misaligned interests or bureaucratic red tape.’She noted that in such times, it was important for Government, civil society and industry players to work closely together.’When we advocate for understanding, support and true partnerships, we do not necessarily suggest the Governments should bail out the industry,’ she added.Namdeb, which has also felt the impact of the financial crisis, bringing about an interruption in the diamond production cycle and the retrenchment of 578 staff, at one point had to seek ‘letters of comfort’ from its shareholders – Government and De Beers – in order to renew its N$650 million overdraft with all four commercial banks in Namibia.’Each case must be judged on its own merits, and governments must facilitate a conducive climate in which transparency, accountability and fair treatment of all players are the order of the day. Doing otherwise risks reversing the positive gains made thus far,’ Zaamwani-Kamwi said.But she added that with the storm comes a chance to reflect on the industry’s future.’I believe that those companies who are proactive, bold enough to take tough and sometimes not so popular decisions will best weather the storm and emerge stronger. We should therefore use the opportunity provided to focus on fewer better things that can stand the test of time,’ she said.Noting the negative impact that the downturn had not only on Namdeb but also on other players in the industry, including cutting and polishing centres in Namibia, Zaamwani-Kamwi was nevertheless optimistic about the industry’s future.’The diamond industry still remains an important economic player. Despite the reduced activities, the industry still employs a significant number of people and remains at the cutting edge of innovation, national transformation and value addition strategies.’She added that while there were anecdotal signs of improvement in consumer confidence in the major markets, the industry remains in a recession, and the market remains ‘fluid and fragile’.’While we continue to monitor emerging trends and market dynamics, we cannot take our eyes off the dashboard as yet. We must at the same time redouble our efforts using the strengths of our diverse experiences and lessons learned to harness our collective defence of the diamond equity, the core of our industry,’ she cautioned.