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Demand for rough diamonds remains imbalanced – report

A combination of factors continue to affect the supply and demand of rough diamonds across the globe creating a sense of confusion and uncertainty in the market.



This is an analysis contained in a new report published this week by the Dubai Multi Commodities Centre (DMCC) titled; 'Diamonds Changing Forever'.

It said due to the above factors, the global diamond industry was in need of a new narrative and rebranding to secure its future.

"Consumer preference is shifting, the supply and demand of rough diamonds is imbalanced, and access to finance is proving increasingly difficult for many traders," the latest DMCC report reads.

It adds; "Furthermore, advanced technology and automation has ushered in a new wave of disruptive change that has challeneged traditional business models. 

The combination of these factors has created a sense of confusion and uncertainty in the market."

It said diamond prices were also steadily decreasing while profitability is in decline and access to finance is restricted, placing the industry under significant pressure.  According to DMCC, the value of polished diamonds sold as jewellery since 2011, decreased by 13 percent.

The report also highlights how automated manufacturing is set to drastically change the supply of diamonds.



"Technology makes it possible to take a mined diamond today, cut, and polish it, set it in jewellery and sell it to a consumer on the same day."

According to DMCC, a new technology is also in the final stages of development, which will reduce the time it takes to make accurate and consistent assessments.  These developments would sharply reduce production times and DMCC believes that the shorter period would translate into lower inventory, lower bank financing and lower costs.



This, according to DMCC, would also remove polished diamonds price distortions caused by stocking and destocking.

The report further highlights that in order for laboratory grown diamonds (LGDs) and the main diamond industry to survive, the two must coexist, embrace innovation, harness technology and to focus on the customer.

The report went on to predict that LGDs were unlikely to find their niche and that will be to the detriment of the whole industry.

 

The report then identifies four necessary steps the international diamond industry should take collectively in order to secure its future.  The four steps proposed by DMCC are; 'Refocus on branding, Differentiate the product, Develop a new narrative and Surpass competition in retail.'

"The new narrative should show new consumers that each natural diamond is inherently unique, while demonstrating the long-lasting benefits to local communities.

"Many of the diamond-related brands launched over the past few decades are in fact simply logos.

Having a brand represents a promise that is both exclusive and desirable.  The industry needs to further establish brands that do not just sell jewellery, but sell emotional connections.

"Many of today's jewellery retailers are simply selling an increasingly commoditised version of crystallised carbon.  In doing so, they end up fighting a pricing war to survive and causing consumer confusion," the DMCC states.



As part of its recommendations in the report, DMCC said retailers had to offer more than a place to purchase jewellery.  The retailers were advised on the need to provide a community and a unique purchasing exprience.

The retail environment, according to DMCC, had been slow to adapt to the wider retail environment, particularly given the rise of e-commerce.

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Business

Food prices continue to rise, but at a slower rate

28th November 2022

Prices for cereals or staple foods in Botswana and other Southern African countries continue to rise at a slower pace, following trends in the global markets, according to the latest November 2022 Food Price Monitoring and Analysis by Food Agricultural Organization (FAO) of the United Nations.

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Business

Still doing business the old way?

18th November 2022

It’s time to get business done better with MTN Business Botswanas ICT Solutions.

Running a digital businessMTN Business Solutions Botswana, popularly known as MTN Business is an Internet Service Provider. We are a subsidiary of MTN Group Limited, a multinational telecommunications Group headquartered in South Africa, which operates in 19 markets across Africa and the Middle East.

More and more, clients are looking for ways to keep their staff productive in a dynamically changing business environment. Whether your people are working from home, the office or abroad, there is a growing recognition that digitising your operations can offer unprecedented commercial value in flexibility, productivity and growth. This new, digital reality means that it is more important than ever to stay agile – if there is anything that can slow a business down, it is being burdened by othatld technology.

Having made substantial investments in fibre technology, high-speed terrestrial and undersea networks and new frequency spectrum across the markets wherein it operates, MTN is perfectly positioned to respond to this shift in the market.

A few years ago, MTN also made the decision to build an IP capable radio network for its mobile services, giving its core network the ability to seamlessly integrate with enterprise IP networks. The mobile towers deliver services to enterprise clients absolutely anywhere it has a network, shortening the last mile and removing complexity and cost.

Now there is increasing demand from clients to connect their remote sites in all areas, including rural and semi- rural. MTN has assisted clients with overcoming this connectivity hurdle, enabling their staff to get the job done wherever they are.
MTNs evolution

For MTN, the focus has shifted from just being a core telecommunications services provider, towards also becoming a technology solutions provider. The service offering now also includes Unified Communications, Data Hosting and Cloud Solutions, Security-As-A-Service and Managed Network Services. The scope has changed to being client and industry specific, so the requirements and service portfolio vary from one client to the next. The expectation is that a company like MTN must respond to these challenges, helping clients to get business done better as they shift from old to new technologies.

As many businesses continue to grapple with a digitally dynamic world, they face new challenges that have to be solved. This environment will benefit those that are more digitally enabled and agile. It is a brave new world that will favour online over on-site, wireless over wired and fluid over formulaic. Businesses will seek out partners and suppliers that are every bit as flexible and forward-looking as they are.
Ultimately, clients need partners like MTN Business that will invest in infrastructure, deliver the services they require, have market credibility, are financially sound and have a long-term commitment to their market presence.

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Business

BIE to vitalize the Dignity of Engineers

9th November 2022

Botswana Institution Of Engineers (BIE), has last week hosted a gala dinner in which they appreciated engineers who worked tirelessly and with dedication for 10 years from 1983 to steer the BIE to its current status.

The event that was held at the Phakalane Golf Estate had brought together young, experienced and veteran engineers and was held under the theme Vitalize the dignity and eminence of all professional engineers.

Explaining the theme, the institutions treasurer, Thanabalasingam Raveendran said that engineers were looked upon reverentially with respect as the educated but with time it seems to have deteriorated. He indicated that there is a need to change the narrative by all means.

The BIE exists for the welfare and the betterment of us Botswana engineers, we need to recognize specialised units within our Institution. We Engineers strongly believe in Engineers make it happen Raveendran said.

He indicated that under the theme they appeal to all engineers to energize, to attain quality of being worthy of honour and respect and to achieve recognized superiority amongst the Society.

Raveendran stated that engineers need to ensure their end product is of good quality satisfying the end users expectations and engineers must be honest in their work.

Approximately 8000 engineers registered with Engineering Regulatory Board (ERB) are not members of the BIE, engineers need to make every effort to recruit them to BIE he said.

He alluded that BIE being a society, it currently needs to upgrade itself at par with professional institutions elsewhere like the UK and USA.

He further stated that BIE has to have engineering units of specialised disciplines like Civil/Mechanical/electrical etc

As President Masisi indicated in his inaugural speech, the young people, who make 60 percent of the population of this country, are the future leaders and therefore investing in them is building the bridge to the future said Raveendran

Kandima indicated that BIE has a memorandum of Understanding with Engineers Registration Board (ERB), where BIE is a recognised provider of CPD training, mentorship programmes and more importantly IPD undertaking to upgrade the skills and know-how of our engineers.

For us to achieve our mandate and make worthwhile changes to engineering in Botswana, we have to be totally focused and act with intent said Kandima.

Furthermore, Stephen Williams, past president of the BIE from 1986-1988 told the engineers that the BIE provides a fertile environment where they can meet, share ideas and grow professionally.

The BIE is also a nesting place for graduate engineers to learn from their peers and seniors, it also cater for engineering technicians and technologists and so nobody in the technology field is left out he said.

He further indicated that Botswana Government provides a conductive environment for growth of engineering professionals.

It must be stated that the Botswana Government recognises the existence of BIE and it can further be stated that the government enables ERB to carry out its mandate as a regulator of engineering professionals said Williams

He plead with engineering companies to recognize and support BIE as it is the only source of engineering personnels for various Industries .

Furthermore, when giving his farewell speech, Michael Pinard , a past president of the institution said how they are viewed as engineers by the general public might be due to some lack of appreciation as to exactly what role they play in the development of the country.

The BIE slogan is aptly coined-Engineers make it happen, in other words, what man dreams engineers create Said Pinard.

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