Namibia’s diamond sales and marketing entity, Namib Desert Diamonds (Namdia) has declared a record dividend of N.dollars 300 million to the government after an impressive performance during the 2022-23 financial year.
This was revealed by Namdia’s chairperson, Bryan Eiseb, here on Wednesday, when he also launched the company’s annual report for the financial year from 01 March 2022 to 28 February 2023.
He said the dividend is the highest in the history of the diamond sales company, which has been in existence for just over six years.
The year saw Namdia’s strongest performance, with revenue reaching N.dollars 3.1 billion, a 63 per cent increase compared to last year’s revenue of N.dollars 1.9 billion.
“This dividend represents more than just a financial transaction. It is a reaffirmation of our commitment to the people of Namibia, including our partnership with the government and fellow Namibians whom we serve,” he said.
Eiseb noted that Namdia has made a compelling case for Namibia to sell its diamonds. “We have displayed in a very short time that Namdia is the route to market the Namibian diamonds. In light of that and despite the circumstances, I think it is time that, as a government, we start rethinking our approach and our arrangement with the 50-per cent shareholder, Namdeb, at this point in time,” he said.
In May 2016, the government and De Beers signed a 10-year sales agreement for the sorting, valuation and sale of Namdeb Holdings diamonds.
The agreement also provides for 15 per cent of Namdeb’s annual run-of-mine production to be made available to Government-owned Namdia.
However, Eiseb stressed that there is a need to negotiate the 15 per cent allocation.
“We are nearing the end of the 10-year sales and marketing agreement, and when we start preparing to go to the negotiating table, I believe it is important that we negotiate that window that was opened 10 years ago. The 15 per cent of that window needs to be pushed much wider so that we can experience and enjoy the benefits of our Namibian diamonds,” said Eiseb.
The Namdia chairperson further called for the beneficiation of local diamonds, arguing that Namibian diamonds have been exported in rough form for over 100 years.
“That certainly cannot be the case. We are in the best possible space now as the government to demand for more diamonds, in the sense that our diamonds need to be cut and polished here in Namibia. I believe that Namdia has shown and displayed a compelling case for us to go downstream and to export jewellery made in Namibia, with Namibian gold and diamonds,” he said.
Source: The Namibia Press Agency