Namibia DTC

In January 2007, the Government of the Republic of Namibia (GRN) and De Beers signed a new sorting, valuing and marketing agreement. Under the agreement, Namdeb’s production in Namibia will be sold through the DTC until 2013. The agreement included the formation of Namibia Diamond Trading Company (‘NDTC’, a 50:50 joint venture between the GRN and De Beers), to recognise and formalise the GRN’s and De Beers’ efforts to develop a sustainable local downstream diamond industry in Namibia. The purpose of NDTC is to make diamonds available for sale in Namibia for local manufacturing. This will support the GRN’s economic imperative to drive job and value creation from its diamond resources. Through NDTC, up to N$2 billion (US$300 million) worth of diamonds will be made available locally by 2009, representing close to five percent of Namibia’s GDP.

Shihaleni Ellis Ndjaba, CEO of NDTC

In Namibia, the sorting, valuing and sales of the country’s rough diamonds – as well as the development of opportunities for value creating marketing initiatives as appropriate for Namdeb’s diamond production – will now take place through NDTC. It is envisaged that NDTC will be the primary vehicle for growing the diamond manufacturing industry in Namibia and driving the creation of a sustainable downstream diamond industry in the country that will:

NDTC will sort and value in excess of two million carats annually, and incorporates state-of-the-art sorting equipment designed and manufactured by DTC. The majority of Namdeb’s production is sorted and valued at NDTC before being exported to DTC for aggregation. Once aggregated, a mix of diamonds is then returned to NDTC to be sold locally.

On 4 October 2007, the first NDTC client list was announced, formalising supply arrangements for 11 Namibian diamond manufacturing operations. The clients selected by NDTC will play an active role in creating a sustainable diamond manufacturing industry that will create employment in Namibia. On 29 October 2007, those companies with operational factories as of 18 July 2007 received their first supplies for cutting and polishing in Namibia, with the remainder receiving their first supply from 31 March 2008.

In addition to being sorted and valued, a proportion of diamonds from Namdeb is sold directly by NDTC to local manufacturers, without being aggregated. This is for the primary purpose of creating a local Namibian brand. NDTC will work together with Namibia-based diamond manufacturers to support local marketing initiatives, helping to create a brand that will focus on local consumers and tourists.

NDTC also intends to work together with clients on marketing initiatives to stimulate local and regional consumption of diamonds and to maintain the integrity of the gems as a magnificent and unique natural product. It is hoped that, with the support of NDTC’s clients, a small but viable market can be developed in the country, focusing on local consumers and tourists.

By facilitating the establishment of cutting and polishing in Namibia, the GRN and De Beers are paving the way for additional downstream activities, from diamond jewellery manufacturing through to retailing. As part of the beneficiation initiative, both parties will continue to facilitate, drive and support the creation of Namibia’s downstream diamond industry.

It is hoped that the expansion of diamond activities by NDTC will also give rise to the growth of secondary business sectors such as banking, security and IT. This should contribute to the cultivation of a more advanced diamond industry and provide further opportunities for Namibia’s economy to grow.