Interview with Bogolo Kenewendo: Revitalizing Botswana’s Diamond Market

This article discusses an interview with Bogolo Joy Kenewendo, Botswana’s Minister of Minerals and Energy, who reflects on Botswana’s recent contract with De Beers, thoughts on lab-grown diamonds, and proposals to promote the natural diamond market. Key points include increased sales structure for the Okavango Diamond Company and initiatives for consumer education and traceability of diamonds. Kenewendo emphasizes the cultural and economic significance of diamonds for Botswana’s future.

Bogolo Joy Kenewendo, Botswana’s Minister of Minerals and Energy, participated in a dialogue with JCK following her attendance at the Jewelers Vigilance Committee’s annual luncheon in New York on March 14. As an economist appointed to her role in November, she addressed Botswana’s recent contract with De Beers, her perspective on lab-grown diamonds, and strategies to rejuvenate the country’s natural diamond market.

In her observations regarding the U.S. market, Minister Kenewendo noted that while the industry is familiar with Botswana, American consumers remain largely uninformed about the origin of their diamonds. A market exploration revealed that many retailers mistakenly attribute diamond sources to South Africa. However, the reception at the luncheon was optimistic, with discussions centered on the relief following the new agreement with De Beers, aiming to collaborate on marketing strategies and educate consumers.

The newly signed agreement stipulates that the sales of the Okavango Diamond Company (ODC) will see an increase from 25% to 30%. After five years, this figure is expected to rise to 40%, eventually stabilizing at a 50/50 distribution within the decade. The ODC is exploring various sales strategies; while auctions will continue, the company may also pursue contract purchases and direct sales.

Kenewendo mentioned the potential of establishing a Botswana hallmark that emphasizes ethical sourcing. This hallmark would not only apply to ODC but also encompass diamonds marketed by De Beers. Possible concepts for the hallmark include themes like the Canadamark and could signify responsible mining practices to consumers.

Additionally, a joint marketing fund is being established, with a steering committee formed to elevate the natural diamond market, showcasing Botswana’s contribution to the diamond-for-development narrative. This strategy aims to unify marketing efforts under the Botswana brand while emphasizing the benefits arising from the diamond industry.

Regarding HB Antwerp, Kenewendo clarified that there are no current contracts or negotiations underway for a partnership with the company. Although discussions about efficiency in diamond manufacturing in Botswana continue, she reassured that while some factories may have temporarily paused operations, they remain hopeful for recovery as the market stabilizes.

Minister Kenewendo expressed her initial concerns about lab-grown diamonds impacting the natural diamond industry. However, recent reports indicate a rebound in demand for natural diamonds, particularly in markets such as the Middle East and India. She asserts that natural diamonds should still be valued for their rarity and societal significance, countering the argument that lab-grown alternatives are environmentally superior.

As news circulated about Anglo American considering a sale of De Beers, Kenewendo disclosed that Botswana is assessing opportunities to increase its stake beyond the current 15%. She emphasized the importance of shared values in potential ownership considerations.

Commenting on the $2.9 billion write-down of De Beers by Anglo American, Kenewendo stated that this was not unexpected. She highlighted the longstanding challenge of traceability in conveying the impact of Botswana diamonds to consumers. Emphasizing commitment to enhancing traceability, she indicated a desire for international audiences to engage in Botswana’s diamond story firsthand.

Minister Kenewendo concluded with a passionate assertion regarding the integral role diamonds play in Botswana’s economy and community development. She stressed the urgency of rebuilding the diamond industry while ensuring it thrives for future generations.

Finally, she urged stakeholders to renew investments in the natural diamond market, reaffirming that diamonds hold an enduring value, both culturally and economically for Botswana.

In conclusion, Botswana’s Minister of Minerals and Energy, Bogolo Kenewendo, highlighted the significance of the new contract with De Beers, aimed at bolstering the sale of Botswana’s diamonds. Her insights on the need for better consumer education regarding the origins of diamonds, coupled with strategies for enhancing market presence, underscore Botswana’s commitment to reviving its natural diamond industry. Furthermore, she emphasized the importance of maintaining the uniqueness of natural diamonds in the presence of lab-grown alternatives and expressed the need for sustainable practices and shared values in future industry collaborations. Overall, the dialogue reflected a forward-looking perspective concerning Botswana’s diamond sector and the aspirations for growth, efficiency, and ethical sourcing.

Original Source: www.jckonline.com