De Beers Group says it has transferred its initial contribution of P 1 billion (about $73 million) to the Diamond for Development Fund, marking a major milestone in the progress of the Fund and its mandate to support Botswana’s long-term economic diversification.
According to the company, the disbursement follows the establishment of the Fund’s governance structures, including the appointment of Dr Akinwumi Adesina as the Chairperson as well as the appointment and onboarding of the 10-person independent board.
The Diamonds for Development Fund was established through the longstanding partnership between the Botswana government and De Beers Group to support the country’s economic diversification by using diamond wealth to catalyse investment to develop new industries, support enterprise, create employment and strengthen long-term economic resilience.
De Beers CEO, Al Cook, highlighted that Botswana’s economic progress since independence has benefited from the discovery and recovery of diamonds over many decades.
He added the mining major will continue to invest to ensure the future success of Botswana’s diamond industry while committing to supporting the government’s ambitions to diversify their economy.
“With the Diamonds for Development Fund, we are proud to work with our partners in Government to introduce a new vehicle through which diamond revenues can generate sustainable economic opportunities beyond diamonds,” Al Cook said.
“The Diamonds for Development Fund now has both an outstanding Board and significant funding. I am confident that the Diamonds for Development Fund can accelerate Botswana’s future economic growth and act as an example to the world of the responsible development of natural resources.”
Minister of Minerals and Energy, Bogolo Kenewendo, stated that the Fund is a strategic instrument for advancing Botswana’s economic transformation.
She added it seeks to find new ways to convert the value of the country’s diamond resources into long-term prosperity and investing in the industries, enterprises and capabilities that will drive the next phase of our nation’s development.
“Through the Diamonds for Development Fund, we can create quality jobs, expand opportunities for Batswana and strengthen the foundations of a more diversified and resilient economy. This is about building the future we want for Botswana, leveraging the success of diamonds to create new pathways for growth and shared prosperity.”
For his part, Dr Adesina, noted that the receipt of the initial contribution marks an important milestone for the Diamonds for Development Fund.
“The Fund will now move towards implementation. We are excited to get going on our work to support strategic intervention areas to drive economic diversification, industrialisation, export competitiveness and the creation of jobs and prosperity for the people of Botswana,” he said.
In September, the Chairperson and the Board of Directors of the Fund held its first in-country Board meetings in Gaborone during which they held extensive meetings with key stakeholders.
The Fund’s vision is “to help transform Botswana’s diamonds’ wealth into diversified, productive and sustainable resources for advancing national development and future prosperity of the people of Botswana.”
It serves “serves as a catalytic investment platform for crowding in significant larger pools of domestic and international capital into Botswana’s economic diversification, productivity, competitiveness, expansion of exports and creation of jobs.”
With its strategic vision and mandate and its full governance systems in place, the Diamonds for Development Fund is now transitioning to its next phase: completing its strategy, business plan and the roll out of its programs in strategic intervention areas.
The initial contribution from De Beers Group provides the financial foundation on which the Diamonds for Development Fund will build through accessing larger pools of private, domestic and international capital.