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2016 in numbers…but not the ones you think

It should come as no surprise that as Chief Financial Officer for De Beers Group, I’m going to have a passion for numbers and a vested interest in the figures that, ultimately, contribute to our bottom line.

It was these numbers that were in the spotlight last Tuesday when Anglo American published its financial results for 2016. However, rather than recap the key figures from our financial performance, I thought it would be interesting to shed light on some of those figures that you wouldn’t necessarily consider when looking back on last year, but that are equally important when reviewing the year that was for De Beers.

This is the smallest carat size of colourless and near-colourless diamonds that our International Institute of Diamond Grading & Research’s (IIDGR) new PhosView instrument can analyse. Consumers’ confidence in the provenance of their diamond is of paramount importance to our business and PhosView is one of many innovative examples of how the IIDGR is helping

Opening a new mine is no small feat, but that’s just what we did last year at Gahcho Kué in Canada’s Northwest Territories. For those outside the industry, opening a new mine might not seem like something to write home about. However, when you consider that Gahcho Kué has been more than 20 years in the making, is the world’s largest new diamond mine and will make a significant contribution to Canada’s economy (more on that later), it really is a fascinating story worth telling.

The number of Historically Disadvantaged South African-owned diamond cutting and polishing companies selected for a new beneficiation project between De Beers, the South African government and the country’s cutting and polishing industry.
The industry, in South Africa in particular, faces a number of challenges that inhibit it from competing on a larger scale. However, this project aims to encourage growth and sits alongside other beneficiation initiatives we have a hand in, such as the Shining Light Awards.

The number of years established for the new sales agreement between De Beers and the Government of the Republic of Namibia, which will see more rough diamonds being made available for sale locally. The agreement – the longest ever signed between De Beers and Namibia – marks a new chapter in our partnership with the country, which first began more than 20 years ago, and reinforces our commitment to its future as a leading diamond-producing nation.

That’s how many disadvantaged Namibian children were supported with their academic studies last year through a new N$10 million partnership between De Beers and the University of Namibia. With so much of Namibia’s development built on an economic foundation of diamonds, it’s only right that we do what we can to support those who truly need it. With this five-year agreement, which complements the Government’s own efforts in supporting children from marginalised communities, we aim to do just that.

The amount invested in an expansion of the IIDGR’s diamond grading and testing centre in Surat, India. This world-leading facility, which was first opened in 2015 following a US$10 million investment, can process up to US$500 million worth of diamonds each year, bolsters India’s position as a leading diamond processing hub and complements the country’s position as a leading consumer of diamond jewellery.

That’s how many potential Millennial diamond consumers there are across our four main consumer markets, as highlighted in our recent Diamond Insight Report. It’s very clear to us that tomorrow’s consumers are not the same as yesterday’s. But, while they may share some of the same views, we intend to make sure De Beers is well positioned to capitalise on the opportunity these potential new diamond jewellery owners provide.

The contribution that our new Gahcho Kué mine is expected to make over its lifetime to Canada’s economy, which also includes a C$5.3 billion boost for the Northwest Territories. Our business is one built on partnerships. We can’t do what we do without working with our host countries’ governments, communities and local authorities. Having a social licence to operate, and as demonstrated by the socio-economic impact Gahcho Kué will provide, we can deliver value for our partners, as well as our shareholders. So, there you have it. From 0.003 to 6,700,000,000 in around three minutes.

And these are just a few of the figures that contributed to a year where we delivered strong financial returns and a robust operating performance.  However, while revenue and earnings can be important measures of success, it’s numbers such as those I’ve gone through here that help give a truer sense of our overall performance in 2016.

Nimesh Patel is CFO, De Beers Group

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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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Still doing business the old way?

18th November 2022

It’s time to get business done better with MTN Business Botswana’s 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.
MTN’s 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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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 institution’s 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 personnel’s 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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