The macroeconomic outlook remains positive onto 2019 underpinned by the anticipation of sustained growth in the mining sector, particularly diamonds, as the global economic recovery ensues. At the same time, the non-mining sector is expected to drive growth, largely from the services sectors. The projected accommodative monetary conditions, expansionary fiscal policy, stable water and electricity supply, should all serve to add impetus to economic growth.
The country is set to go to the polls this year with the general elections marked for October. Notwithstanding increased factionalism within the ruling Botswana Democratic Party (BDP) we anticipate the party will retain power come elections. The new political administration’s approval of key legislation aimed at improving the business environment could serve to attract much needed Foreign Direct Investment (FDI) into Botswana.
The Bank of Botswana September 2018 Business Expectations Survey also highlights the positive prospects of 2019. Businesses have indicated positive expectations about 2019 business conditions, which they expect to improve further, with the main drivers being increased demand for consumer products and sustained growth in global demand for mining output.
Over the surveys of recent years, constrained domestic demand has consistently been cited as one of the biggest challenges facing businesses. It is particularly encouraging to note that increased demand for consumer products is now expected to be a key driver of growth. Furthermore, firms expect wages to increase in the first half of 2019, likely premised on the anticipated public service salary increment.
From a global viewpoint, the year has begun with much uncertainty. Key events, including Brexit, the US-China trade war, China’s economic slowdown and the Italy debt crisis, will likely result in investors shying away from equities and parking their money in safe haven assets. The outcome of these events will be pivotal in determining the direction equity markets will take and could influence whether liquidity from foreign investors will return to our local stock market. However, considering the positive domestic macroeconomic outlook, improved fundamentals and attractive valuations on the DCI, investors should see our local stock market as a good buying opportunity.
The Banking Sector
The performance of the banking sector is largely tied to the health of the economy. With ensuing growth anticipated for 2019, demand for credit should remain strong. 2018 saw a recovery in credit growth from the lows seen in 2017 in line with improved economic performance. We anticipate 2019 will be another year of solid credit growth, with businesses acting as the primary driver.
The aforementioned Business Expectations Survey indicates local firms expect a rise in domestic borrowing this year. Meanwhile, consumers are currently under pressure from constrained disposable incomes and there is the general perception of household debt being at high levels. However, the anticipated increase in wages should serve to provide some relief to households and increase their borrowing capacity, albeit to a limited extent.
With the economy only recently beginning to pick up steam and the subdued inflationary environment, we expect the Central Bank will maintain an accommodative monetary policy stance throughout the year. We therefore see the bank rate maintained at 5% in 2019. The monetary policy environment substantiates our expectations of decent credit growth.
Non-interest income growth remains a key focus for the banks. Increased development and enhancement of digital banking channels are driving transactional income growth, with self-service banking increasingly being utilized by customers due to its convenience of 24 hour access and mobility. On the brick and mortar front, banks appear to be adopting a model of leaner branches, with increased self-service access points.
FNBB, the largest bank and market leader in innovation, is well poised to continue driving solid non-interest income growth underpinned by aggressive rollout of digital platforms and initiatives aimed at increasing penetration of clients’ use of the bank’s products. FNBB has targeted particular business sectors for credit extension, while it intends to lend cautiously to households.
Barclays is set to experience a change in leadership with Managing Director, Reinette Van Der Merwe’s tenor coming to an end in the current financial year. The bank’s strategy of growing its fee income will result in ensuing investment in digital solutions in line with increased use of these channels by its clients. Barclays has made it clear it intends to grow its advances market share, with a strong focus on growing its book via client penetration and acquisition. The cost impact of the separation from Barclays PLC however, does bring some uncertainty.
Following the de-risking of its balance sheet, Stanchart should be positioned to drive growth that doesn’t compromise on asset quality. Given its elevated cost/income ratio of 95% as at June 2018, the bank finds itself under immense pressure to bring this metric down and grow its income lines. Newly listed BancABC will largely be focused on the rollout of new and enhanced product offerings and extensive marketing to drive its envisioned transactional banking proposition. The bank significantly lags its more established peers with regards to non-interest income contribution, currently at 16.4% of total income. This indicates the scope that ABC has to grow and diversify its revenue streams.
The Financial Services Sector
Blue chip financial services giant BIHL is set to launch a new strategy this year following the end of its 5 year twin strategy of growth and profitability in 2018. The group’s segmentation approach under the life business has made good in-roads and we believe this will remain a key part of the new strategy with innovation likely to play an ever increasing important role amidst the competitive environment. We anticipate that the affluent segment will continue to be a key driver of growth in value of new business given its low penetration and higher average size premiums.
Asset management arm, BIFM, faces an increasingly challenging landscape. Ex-BPOPF pension funds have followed suit in adopting the measure of splitting mandates amongst asset managers. This development makes it more difficult to grow assets under management. Further, the entry of new asset managers will over time intensify competition for assets as these firms build track records and acquire mandates. On a group level, business development initiatives aimed at marketing BIHL as a “one stop financial services shop” should serve to further harness synergies between the underlying subsidiaries and associate businesses.
Letshego’s broad geographical footprint across Sub-Saharan Africa (SSA) has the group well positioned to scale its operations further. According to IMF statistics, GDP growth for SSA is expected to improve to 3.5% (2018: 2.9%) and 3.6% in 2020. Letshego appointed Smit Crouse as the new group Managing Director late in Q3 2018. Mr. Crouse has extensive experience in finance, commerce, and law, including advising on and managing African banking investments.
Access is the focal point for the firm in driving its strategic agenda of becoming the continent’s leading inclusive finance group. Letshego’s agency network, mobile digital banking solutions, strategic partnerships, new products and cross selling initiatives have substantially increased access and driven customer acquisition. We expect the continued rollout and promotion of these initiatives to drive further growth momentum going forth. With increased diversification into MSE lending, Letshego would do well to monitor the composition of its loan book in order to simultaneously drive growth and keep loan loss rates in check. 5
The Property Sector
The listed property companies are increasingly diversifying across our local borders. The Botswana property market has seen varied dynamics. Demand for retail space has been strong and is still rising with further mall developments and expansions having been recently completed and some underway. This sector is enjoying good occupancy rates and escalations. The industrial sector is seeing solid demand, especially in Gaborone. Developments have reportedly been low; however, demand for prime location space is expected to improve further.
The office market’s state of oversupply has put downward pressure on rentals. Considering the number of new developments and ongoing construction (particularly in Gaborone Central Business District) coupled with subdued employment creation, this sector is likely to remain under pressure. The residential sector has seen improved conditions for the low to middle income segment of the market, while the high end remains weak.
NAP, which has bucked the trend of diversification with an unchanged property portfolio, has nonetheless been a consistently solid performer. The retail property giant should see sustained top line growth from escalations. The weak economic conditions in Selebi Phikwe however will likely remain a drag, with the area currently accounting for 43% of vacancies across the portfolio.
The evolved dynamics of the hospitality sector have forced Letlole management to dispose of its hotel portfolio (which contributes 30% to rental revenues and 28% to the consolidated property portfolio) to related party and incumbent tenant Cresta, subject to unitholders approval. The BWP235 million to be raised from the transaction (a 10% discount to book value) is intended to be reinvested in new acquisitions. Given the length of time acquisitions normally take, investors will likely suffer the opportunity cost of the difference in rental yield and return on cash until the proceeds are utilized.
RDCP has been a significant benefactor of regional diversification on the back of its investments in South African based Capitalgro. South Africa is to be of increasing importance to the company as management has emphasized the number of opportunities being evaluated by Capitalgro. The Xai Xai shopping centre will give RDCP a foothold in Mozambique, while further developments there and in Namibia are still in early stages.
Turnstar has been experiencing prolonged tepid demand, and rightfully so given its challenges in Tanzania. Vacancies at the Mlimani office park have been a major drag on revenues, and pose a significant downside risk to performance. Locally, the expanded area of Gamecity is now largely occupied and should boost retail revenues.
Primetime’s regional and sectoral diversification has been bearing fruit. Three retail developments, Chirundu mall and Munali Mall (Zambia), and Design Quarter (Botswana) were completed late in the previous fiscal year. The revenue impact from these developments will largely be reflected in the current financial year, with management focusing on tenancies in Chirundu and Munali. A further 1,100 sqm extension of Pilane Crossing is currently underway, scheduled for completion in Q2 2019.
Brewery behemoth, Sechaba, has been under the torment of a harsh regulatory environment which saw its profitability decline over the years. The company’s fate has taken a turn for the better with the new political administration’s decision to reduce the alcohol levy from 50/55% to 35% late in 2018, a development which we expect will prove earnings accretive for the beverages giant. A further regulatory change was the extension of liquor trading hours, which should be positive for Sechaba’s volumes.
Shareholders approved of the related party transaction between Sechaba and AB InBev Africa BV which resulted in Sechaba shareholders (excluding AB InBev Africa BV) effectively retaining their financial interest in the sparkling soft drinks business. This segment accounts for roughly 30% of volumes and is thus a paramount part of the business. However, it remains to be seen what the implications of the restructuring of KBL will be following this transaction.
Ecotourism counters Chobe and Wilderness delivered excellent numbers for their interim reporting periods, which include peak season. This should translate to a solid full year performance for their respective reporting periods ended February 2019. The outlook for the Southern African tourism industry is robust and is anticipated to remain so over the medium term.
Locally, the government’s recent policy decision to simplify VISA applications is anticipated to expedite turnaround times and potentially result in increased tourist arrivals into Botswana, particularly from the Far East. We do have some reservations on the sector however, considering the uncertainty around several global events which could dampen consumer confidence in some key markets. The IMF has projected that global output will slow to 3.5% (2018: 3.7%). Risks to this outlook are largely tilted to the downside which could result in an even sharper slowdown in growth if outcomes to several events prove unfavorable.
The Retail Sector
With Choppies yet to release results and Sefalana being the only other listed counter in the retail sector, we have limited indication of developments in this space. Following a period of continued pressures on its local FMCG margins, Sefalana has posted positive performance under its Sefalana Cash and Carry Botswana unit. The improved performance has been attributed to a gradual uptick in consumer spending and confidence. Given the optimism amongst businesses with regard to consumer product demand going forth, we are cautiously optimistic that these improved dynamics will ensue.
Sefalana’s focus going forth will largely be on its core FMCG and supporting businesses. The group plans to open 3 further stores in Botswana this year and to continue its efforts to provide its customer base with a wider product and service offering. The group is also looking to expand its manufacturing business into bottled water and fruit juice manufacturing over the next 12 – 18 months.
The high level of dependence on government tenders remains a key risk for the manufacturing arm, as well as for the smaller Commercial Motors subsidiary. There is however, a general anticipation of a boost in government spending over this election year, which could act as a boon for these segments.
Choppies remains in limbo, yet to release its full year financial results, while its Dec interim results are due for release soon as well. Amidst this debacle, the group appointed a new Finance Director, Heinrich Mathiam Stander effective 15 December 2018. Shareholders recently found some relief following Choppies statement announcing that the Zimbabwe litigation issue has been resolved. The Mphokos, former minority shareholders, have disinvested from the subsidiary and have no further interests in Choppies. Given this was a legal matter; it is likely it was the largest impeding factor with regards to release of Choppies financials.
As the largest retailer in Botswana, Choppies is well positioned to benefit from a recovery in consumer spending. Meanwhile, the civil unrest in neighboring Zimbabwe has exacerbated the difficulties of conducting business, the country battling with foreign exchange shortages and exorbitant inflationary pressures. For now, the market waits with angst for release of the group’s financials to get an indication of the current standings of the business and management’s outlook. (Adopted from SBB Market Outlook for 2019)
Cresta Marakanelo Holidays Limited, Botswana’s leading hotel group, is battling the catastrophic effects of the Covid-19 pandemic and its far-reaching implications.
The tourism and travel business was by far one of the most hit economic sectors. The key to containing the COVID-19 pandemic was the significant curtailment of movement of the people to reduce the spread of the virus. On the flip side, this delivered a massive blow to the tourism and hospitality business, which largely relies on accommodating travellers.
This week, Cresta released their unaudited condensed consolidated financial results for the half-year period ended June 2021. The Group, which operates 11 hotels in Botswana, reported a significant reduction in losses owing to stringent cost-containment measures deployed by management to ensure the business doesn’t plunge deeper into the negative figures zone.
The Group’s registered a six-month loss before Taxation of P34.1 million, which was P8.4 million lower than the prior-year first six months period, which reported a loss of P42.5 million. Cresta says the COVID-19 headwinds continue to significantly affect the tourism and hospitality industry, and Cresta Marakanelo Limited was not an exception.
During the six months to June 2021, the Government of Botswana continued to implement a raft of measures imposed in December 2020 to curb the spread of COVID-19. These measures, which include restrictions on inter-zonal travel, a ban on alcohol sales, and a limited number of conference guests, have had a direct effect on reducing the level of activity in hotels.
The resort town hotels, which ordinarily generate at least 50 percent of their business from incoming foreign travellers, were significantly affected by the lockdowns in the source countries and low travel sentiment even after the hard lockdown measures were lifted. The first-quarter performance was low in line with the seasonality of the business. However, the performance was further slowed down by the pandemic induced low travel sentiment and pandemic mitigation controls in place.
The second quarter saw a rise in the performance of the business when compared to the first quarter, contributing 60% of the revenue generated for the six months ended 30 June 2021. The business enjoyed a steady month-on-month increase in revenues from January to June 2021.
Under the adverse operating conditions for the industry, Cresta Directors boast of the P8.4 million loss cut. This, according to a commentary alongside financials, was mainly driven by the cost reduction measures implemented, some of which will be continued in the long term, even after the pandemic has been contained.
Revenue for the period under review was P96.5 million, 4% (P3.3 million) higher than the same period last year. Earnings before interest, tax, and depreciation and amortization (EBITDA) achieved during the period was P2.2 million, an improvement on the prior year’s loss incurred of P2.5 million.
The reduced market base has seen a surge in price wars in the industry, a variable that further puts pressure on the company’s revenues. Cresta management noted that the Group would continue to focus on cost containment to ensure the business’s survival through this difficult pandemic season.
In a drive to reduce the operating leverage of the business to ensure the company continues to be a going concern, several measures were implemented, including the suspension of all non-critical capital expenditure projects and freeze on all discretionary expenditure. In addition, Cresta negotiated with staff, landlords and other strategic suppliers to reduce contractual obligations. Following these measures, Cresta was able to minimize the reduction in cash balances during the period.
From 31 December 2020, cash balances declined by P29.1 million for the six months to 30 June 2021, compared to a decline of P42.1 million during the same period in 2020 on largely the same level of revenue mirroring successful cash preservation. In assessing the ability of the Group to continue as a going concern, management performed a sensitivity analysis on a 12-month cash flow forecast which the Board of Directors reviewed to their satisfaction.
A range of possible outcomes related to the COVID-19 pandemic were considered, and it was concluded that Cresta Marakanelo Limited would continue as a going concern. The single most significant assumption was that the business should make a turnaround for the better within 12 months period on the back of vaccination programmes both in the source market countries and locally.
Vaccination enhances travel sentiment for the market, and it is on its strength that most paid guests are opting to postpone their bookings rather than cancel altogether. The company has also secured an additional working capital facility of P25 million. This will provide extra headroom while the business levels are low.
Based on the review of the Group’s cash flow forecasts, the Directors believe that the Group will have sufficient resources to continue to trade as a going concern for a period of at least 12 months from the date of approval of these financial statements and accordingly, the interim financial statements have been prepared on the going concern basis.
Last month Cresta announced that they had decided not to renew the lease for the Cresta Golfview Hotel in Lusaka, Zambia, which comes to an end on 31 January 2022. The landlord of the property will continue to run the hotel under a different brand, and preparations are currently underway for a smooth handover of the property, with the least possible impact to staff, suppliers and guests.
During the half-year, P11.7 million (2020: P25.8 million) was utilized in operating activities, primarily due to the subdued revenues. Net cash used in investing activities amounted to P2.5 million (2020: P14.4 million).
The reduction in cash outflow on investing activities was because of the capital expenditure freeze. With regards to financing activities, P15.2 million (2020: P4.1 million) was utilized, split between bank loan repayments of P3.7 million (2020: P1.5 million) and leasing hotel properties P11.5 million (2020: P11.6 million).
In the future, Cresta pins its full recovery hopes on the vaccination plan, which is envisioned to cultivate revived travel sentiment significantly. “As seen in other countries whose vaccination programmes were embraced by a significant part of the population, vaccination is expected to see the removal of conferencing restrictions, alcohol sale ban and lifting of travel restrictions,” the company said.
The International Renewable Energy Agency’s (IRENA) latest Renewables Readiness Assessment of Botswana has made it known that the country enjoys considerable renewable energy potential. Notably, solar, wind and bioenergy are more prevalent. However, these remain largely untapped, despite the country’s ambitious plans for integrating renewable energy into its energy system.
According to the report, Botswana’s total primary energy supply (TPES) is fossil-based and largely reliant on oil products and coal, complemented by biomass and waste energy. In the Integrated Resource Plan (IRP) launched in December 2020, it was announced that renewable energy should account for at least 15% of the energy mix by 2030, whilst the country’s Vision 2036 calls for a 50% renewable energy contribution to the energy mix by March 2036. The ambitions are arguably aloof given the insufficient critical actions that could significantly impact the energy transition in Botswana.
Access to electricity stands at 65%, with 81% of urban areas illuminated and 28% of rural regions electrified. As of 2017, the country’s total energy supply of 2.9 million tonnes of oil equivalent consists of oil products (35%), coal (44%), (traditional) biofuels and waste (19%) and imported electricity (2%). The IRENA has established that electricity is mainly produced from coal or petroleum products imported from South Africa.
As is the case in most regions, Botswana’s power system is characterised by an unreliable power supply, lack of investment, poor maintenance, and high service costs. To meet its peak power demand, Botswana imports power from the Southern Africa Power Pool (SAPP) – mainly from South Africa – and when imports are not available, resorts to costly backup diesel power plants.
In 2013, the International Energy Agency’s (IEA) Clean Coal Centre found that Botswana has estimated coal resources of 40 gigatonnes (Gt) or 40 trillion Kg. In 2014, the only two measured coal reserves were Morupule and Mmamabula basins, with a capacity of 7.2 Gt. IRENA believes this abundant resource is underexploited as only a single coal mine, Morupule, is currently operating.
Already established, Botswana relies heavily on fossil fuels for its electricity generation. As shown by the country’s installed generating capacity of 893.3 megawatts (MW), comprising 600 MW from the coal-fired Morupule B, 132 MW from the also coal-burning Morupule A, 90 MW from Orapa power plant, which is a diesel peaking plant, 70 MW from Matshelagabedi power plant (diesel peaking plant) and 1.3 MW from Phakalane solar photovoltaic power plant, according to the then Ministry of Mining, Minerals, Energy and Water Resource (MMERW) in 2017, now under a new name.
IRENA posits that although the installed capacity can cover the country’s peak demand estimated at 610 MW, the Botswana Power Cooperation’s (BPC) interconnected system faces several challenges. According to the power parastatal, in 2017, Morupule A did not produce electricity and was closed down for refurbishment. It produced 25 gigawatt-hours (GWh) in 2018 but had to be shut down again to remedy defects identified during commissioning.
Morupule B has been running under capacity since its commissioning in 2013 due to plant breakdown and system failures. BPC is currently undertaking remediation, which is expected to be completed in 2023/24, with all units running 100% production.
As for the diesel power plants of Orapa, producing 90MW and Matshelagabedi’s 70MW, which are rented to Alstom, they were conceived to support peak load but are being used for regular electricity supply BPC reports. The Corporation’s two diesel power stations were not used during 2018 and remained on standby. The lack of capacity to satisfy electricity demand requires regular imports from surrounding countries.
Botswana relied on electricity imports to cover up to 94% of its demand until the progressive recovery of the Morupule B plant. IRENA noted that the share of electricity imports in total supply decreased to about 17%, or 594 gigawatt-hours (GWh) in 2018 from 1 297 GWh in 2017 due to lower demand from the mining sector.
BPC has been in a precarious financial state for many years due to high import costs, operational difficulties and inoperative assets and has been kept afloat by government subsidies. Botswana has an exceptionally high rate of solar irradiation, making solar energy a promising renewable energy source in the country.
The semi-arid country has an estimated 3 200 hours of sunshine per year. According to a MMEWR study, the yearly solar resources from global horizontal irradiation (GHI) range from 2 050 to 2 920 kilowatts received in one hour by one square meter of a surface (kWh/m²). For comparison, these irradiation levels are similar to those in California, which is amongst the most competitive solar market today.
Botswana is also endowed with a range of bioenergy resources that could be used for energy production. Wood fuel remains the dominant cooking fuel for rural households, as 42% of the population relies on it. A 2016 World Bank study based on a government study from 2007 to assess biofuel production and use in Botswana revealed the potential for biodiesel production from Jatropha curcas and bioethanol from sweet sorghum and sugarcane crops.
The Central district presents the highest biodiesel potential from Jatropha production, while the North-West district’s bioethanol potential from sweet sorghum is mainly located in the Ngami sub-district. However, another study coordinated by IRENA found that Jatropha is not suitable to cultivate in Botswana, as 100% of the land is restricted due to protected areas, wetlands, existing agricultural lands or urban areas, as well as additional exclusion areas and other restrictions in terms of market access and water availability. Sugarcane crops were only viable if irrigated, and the extent of production could reach 9% of the land.
Furthermore, an analysis conducted by IRENA and United States-based Lawrence Berkeley National Laboratory (LBNL) for the Africa Clean Energy Corridor depicts some suitable zones for wind turbine power deployment, which are mainly located in the southern part of Kgalagadi district near Tsabong and the Southern region, with a technical potential of up to 1.5 GW.
In the foreword of Botswana’s Renewables Readiness Assessment, the Minister for Mineral Resources, Green Technology and Energy Security, Lefoko Moagi, said the release of the report coincides with the recent adoption by Parliament of the Botswana National Energy Policy – a key, strategic instrument for the successful and economic development of the local energy sector.
A prominent objective of the Policy is to achieve a substantive penetration of new and renewable energy sources in the country’s energy mix; the goal is to attain adequate economic energy self-sufficiency and security, as well as to position Botswana to fulfil its vision of becoming a regional net exporter, especially in the electricity sector. Director-General for IRENA Francesco La Camera said Botswana possesses considerable potential for renewable energy development.
In the introduction of the assessment, La Camera stated that the report presents clear and practical steps to maximise the country’s use of renewables in driving sustainable economic growth for Botswana. The extensive document identifies the need to adopt a broader range of renewable energy technologies to diversify Botswana’s power generation away from coal, generate socio-economic value and fulfil the country’s environmental and climate commitments.
Joint venture between De Beers and Government of Republic of Namibia announces new plan, supporting economic, commercial, employment and community benefit, following receipt of royalty relief Namdeb Diamond Corporation (Proprietary) Limited (‘Namdeb’), a 50:50 joint venture between De Beers Group and the Government of the Republic of Namibia, today announced the approval of a new long-term business plan that will extend the current life of mine for Namibia’s land-based operations as far as 2042.
Under the previous business plan, the land-based Namdeb operations would have come to the end of their life at the end of 2022 due to unsustainable economics. However, a series of positive engagements between the Namdeb management team and the Government of the Republic of Namibia has enabled the creation of a mutually beneficial new business plan that extends the life of mine by up to 20 years, delivering positive outcomes for the Namibian economy, the Namdeb business, employees, community partners and the wider diamond industry.
As part of the plan, the Government of the Republic of Namibia has offered Namdeb royalty relief from 2021 to 2025, with the royalty rate during this period reducing from 10% to 5%. This royalty relief has in turn underpinned an economically sustainable future for Namdeb via a life of mine extension that, through the additional taxes, dividends and royalties from the extended life of mine, is forecast to generate an additional fiscal contribution for Namibia of approximately N$40 billion. Meanwhile, the life of mine extension will also deliver ongoing employment for Namdeb’s existing employees, the creation of 600 additional jobs, ongoing benefits for community partners and approximately eight million carats of additional high value production.
Bruce Cleaver, CEO, De Beers Group, said: “Namdeb, a shining example of partnership, has a proud and unique place in Namibia’s economic history. This new business plan, forged by Namdeb management and enabled by the willingness of Government to find a solution in the best interest of Namibia, means that Namdeb’s future is now secure and the company is positioned to continue making a significant contribution to the Namibian economy, the socio-economic development of the Oranjemund community and the lives of Namdeb employees.” Hon. Tom Alweendo, Minister of Mines and Energy for the Government of the Republic of Namibia, said: “Mining remains the backbone of our economy and is one of the largest employment sectors within our country.
Government understood the fundamental impact of what the Namdeb mine closure at the end of 2022 would have had on Namibia. Therefore, it was imperative to safeguard this operation for the benefit of sustaining the life of mine for both the national economy as well as preserving employment for our people and the livelihoods of families that depend on it.”
Riaan Burger, CEO, Namdeb Diamond Corporation, said: “After more than a century of production, these operations were approaching the end of their life, but the creation of this new business plan means we can continue to deliver for Namibia for many years into the future. This is great news for the hardworking women and men of Namdeb, as well as for all our community partners who we are proud to have worked with over the years. We now look forward to starting a new chapter in Namdeb’s proud history.”