Bogolo Kenewendo, Botswana’s Minister of Minerals and Energy, discusses the recent contract with De Beers, consumer education on diamond origins, and plans to revitalize the diamond market. The interview highlights changes in sales strategies, ethical marketing initiatives, and the potential for Botswana to enhance its stake in De Beers. Kenewendo addresses concerns regarding lab-grown diamonds and emphasizes the country’s commitment to transparency and sustainability in the industry.
In an insightful interview, Bogolo Joy Kenewendo, Botswana’s Minister of Minerals and Energy, shared perspectives on the nation’s evolving diamond market after attending the Jewelers Vigilance Committee’s annual luncheon in New York. At 38 years old, she emphasized the importance of consumer education regarding Botswana’s diamond market, revealing gaps in American awareness about the origins of their diamonds.
Kenewendo referenced the recent contract with De Beers, which significantly impacts the distribution of diamonds through the Okavango Diamond Company (ODC). Currently, ODC sells 30% of De Beers’ diamonds, a figure set to increase to 50% over the next decade. She elaborated on strategic changes aimed at enhancing sales methodologies, moving towards direct sales and potentially transforming market dynamics.
A hallmark initiative was discussed, focusing on responsible sourcing similar to the Canadamark. This would position Botswana’s diamonds, marketed with ethical values, to distinguish themselves in a competitive landscape. Additionally, a joint marketing fund established under the new contract aims to boost Botswana’s position in the global diamond sector and strengthen the narrative surrounding diamonds as engines for development.
Regarding lab-grown diamonds, Kenewendo expressed her initial concerns about their impact on natural diamonds. However, she noted signs of recovery for natural diamonds in markets like the Middle East and the U.S., indicating a resurgence in their desirability. This trend may counter the notion that synthetic diamonds are equivalent to natural ones, which she clarified are distinctly different in their value and rarity.
On the operational front, Botswana is currently evaluating the state of its diamond-cutting factories, many of which are awaiting market recovery before making any irreversible decisions. Furthermore, efforts to improve manufacturing efficiencies in Botswana are underway to bolster competitiveness within the industry.
Kenewendo addressed inquiries regarding the future of De Beers, indicating that Botswana is open to increasing its stake beyond the current 15%, contingent on shared values and successful collaborative endeavors. The significance of Botswana’s diamond industry extends beyond economics; it symbolizes sustainability and its contributions to society.
Lastly, Kenewendo called for enhanced traceability of diamonds sourced from Botswana, reinforcing the nation’s commitment to transparency in the industry. Her passion for harnessing the potential of diamonds as a catalyst for development reflects her vision for the future of Botswana’s diamond sector, emphasizing the need for continuous investment in the product.
In conclusion, Minister Kenewendo’s insights underline Botswana’s proactive approach in revitalizing its diamond industry through strategic contracts, ethical marketing initiatives, and consumer education. As the nation navigates the evolving landscape of the diamond market, its focus on enhancing traceability and sustainability will serve to reinforce the intrinsic value of natural diamonds in the global marketplace.
Original Source: www.jckonline.com
