Strengthening Botswana’s Diamond Industry: Insights from Minister Bogolo Kenewendo

Bogolo Kenewendo, Botswana’s Minister of Minerals, discussed the recent De Beers contract at a JCK luncheon, emphasizing consumer education and ethical diamond sourcing. The ODC will increase diamond sales from 25% to 30%, with a potential 50% share by year ten. Kenewendo remains cautious about lab-grown diamonds but sees an uptick in the natural diamond market. Plans for a marketing fund and hallmark initiative were also detailed.

Bogolo Joy Kenewendo, Botswana’s minister of minerals and energy, was the guest of honor at the Jewelers Vigilance Committee annual luncheon in New York on March 14. Appointed in November, she discussed Botswana’s new contract with De Beers, her perspectives on lab-grown diamonds, and the country’s strategy to enhance its natural diamond market.

Kenewendo highlighted that while the U.S. market recognizes Botswana, American consumers remain largely unaware of its significance in diamond production. She noted a positive reception to the concluded agreement with De Beers and the necessity to develop a marketing strategy to educate consumers about the origin of diamonds, enhancing industry leadership.

The recent deal involves increasing the sales of diamonds by the Okavango Diamond Company (ODC) from 25% to 30%, with projections to reach 50% in ten years. Kenewendo indicated that ODC is considering alternative selling strategies, transitioning from auctions to potentially direct sales.

Discussions at the luncheon also included the possibility of a Botswana hallmark for diamonds, akin to the Canadamark, aimed at promoting ethical sourcing. The goal is to raise consumer awareness regarding responsible mining and diamond provenance.

The new contract also establishes a joint marketing fund, supported by a high-level steering committee that aims to uplift the natural diamond market by sharing Botswana’s diamonds-for-development narrative, enhancing category marketing initiatives.

Regarding Botswana’s potential stake in HB Antwerp, Kenewendo clarified that no contract currently exists, nor are there active negotiations. The minister addressed the diamond-cutting factories in Botswana, reaffirming that while some have paused operations, the majority are preparing for an upcoming market recovery.

Kenewendo shared her initial concerns about lab-grown diamonds, likening them to cannibalizing the industry. However, recent signs indicate a rebound in natural diamonds, especially in regions like the Middle East and India, with marginal growth noted in U.S. revenues.

She emphasized the inherent differences between natural and synthetic diamonds, arguing against the narrative that lab-grown diamonds are environmentally superior. Botswana has committed significant land to conservation, advocating for the societal contributions of natural diamonds.

On Anglo American considering selling De Beers, Kenewendo mentioned that Botswana is evaluating potential ownership structures, focusing on shared values and the purpose of securing value for Botswana.

When discussing Anglo’s substantial write-down of De Beers, she remarked it was not unexpected due to the market slump. Kenewendo identified traceability as a key issue hindering the success of the diamond industry’s narrative and expressed intentions to enhance it through investments.

Kenewendo expressed her passion for the diamond industry, highlighting its critical role in Botswana’s economy and future. She reiterated a commitment to rejuvenating consumer interest in diamonds and increasing market values.

Kenewondo’s insights reveal Botswana’s proactive approaches towards strengthening its diamond industry through enhanced contracts with De Beers, strategic marketing initiatives, and addressing consumer education. The discussion illustrates a sustained commitment to promoting the ethical sourcing of diamonds while asserting the significance of natural diamonds in the global market. The outlook for Botswana aims at leveraging its unique story and values to revive and expand its diamond trade.

Original Source: www.jckonline.com