Botswana to disrupt De Beers, Africa diamond trade

Authored by semafor.com and submitted by rogerram1
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Botswana's acquisition of a 24% stake in a Belgian diamond company is one of the most ambitious attempts by an African country to move beyond extracting minerals to adding more value.

The three-year old HB Antwerp is worth “hundreds of millions” of dollars, co-founder Rafael Papismedov told Semafor Africa. The investment will help the company open a new facility in Botswana and hire about 350 more people by 2026.

“Diamonds remain the mainstay of our economy,” said Botswana’s Minister of Minerals and Energy Lefoko Moagi, speaking during the announcement of the partnership in late March. “And indications are that they will remain so for the foreseeable future.”

The diamond sector accounts for some 20% of Botswana’s GDP and over 90% of its foreign export earnings and just over 30% of government revenue.

Botswana’s government is also keen for more transparency using HB’s proprietary platform to be able to trace diamonds from source to the consumer. “The legacy of the diamond industry is that everything is built on trust and a handshake,” Papismedov told Semafor Africa. “As disruptors we say don’t trust, verify.”

Nomustang on May 6th, 2023 at 15:44 UTC »

I hope Botswana won't fall to Dutch disease. There's a genuinely good future for them, if they use the revenue well.

rogerram1 on May 6th, 2023 at 14:30 UTC »

Botswana is the world's second largest diamond producer. It unearths the largest and highest quality raw diamonds on earth. But is way down the pecking order when it comes to exporting "polished diamonds" which is where the real money is.

Antoine1738 on May 6th, 2023 at 13:33 UTC »

Good