De Beers unfazed by competitors fancying their chances in Botswana deal
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De Beers Co-Chairman, Bruce Cleaver, has said the company’s market share in the diamond industry enables it to play a significant role in shaping the industry, making it an ideal partner to the Government of Botswana, as the two entities are engaged in protracted talks amid interest from other players.
There have been reports that other diamond players are watching the developments involving De Beers and the Government of Botswana with keen interest, with the view of presenting themselves as an alternative partner should the two parties fail to agree terms.
De Beers and the Government of Botswana, who have a partnership dating back to the latter’s formative years, are involved in protracted talks over sales agreement and lease agreement for Orapa, Letlhakane and Damtshaa Mines (OLDM) and Jwaneng Mine, an unusual occurrence for the two agreements to be discussed concurrently.
While De Beers has continued to project a positive outcome at the end of the negotiations, President Mokgweetsi Masisi recently indicated that the Government will sever ties with the world’s oldest diamond mining company, bringing to end the over 50 years old partnership, should Botswana fail to get a fair deal. De Beers, however, believes its position in the diamond market, makes it secure in terms of maintaining its partnership with the Government of Botswana.
“The diamond industry remains absolutely dominated by two players; De Beers and Alrosa. The remaining players on the mining side are smallish businesses. They are good businesses but smallish. You need scale to be successful in this business because all these things that we do, like spending money on driving consumer demand, investing in Tracr, and dealing with the threat of lab-grown diamonds needs scale, and it needs funding,” Cleaver told members of the media on Tuesday.
“I think two big players probably got bigger in the last 10 years. We have seen some other players fall away. It is not De Beers style to criticize other people, it is De Beers style to work best we can with our partners in government to demonstrate to them that we have the best offering and to work with them to deliver their aspirations as much as our aspirations.”
Cleaver said part of the success of De Beers has been its ability to help drive consumer demand by spending significantly on advertising.
“We sometimes forget that it will not help to mine if people do not buy. We spend $200 million (over P2.6 billion) a year marketing natural diamonds. Without that, there will be less demand, but we need demand to keep selling this amazing product,” Cleaver said.
The former De Beers CEO, who left the role just under a fortnight ago, indicated that provided De Beers continues to do its business correctly, consumers’ desire for natural diamond will continue to be strong. The United States (US) and China markets remain core in De Beers revenue, with India also proving to be another important market. However, the consumers have new demands as the basis for continuing to buy diamonds.
“Provenance has become a big thing, which was not maybe five or 10 years ago. We will need to continue to tell an integrated story, all De Beers offices, to consumers about the good that diamonds have done,” he said.
“Five years ago, nobody asked you if your diamond was carbon-neutral, now every retailer in America asks you that question. Soon enough, every consumer in America will ask such a question. Not yet in China, but it will get there.
“Consumers desire diamonds as much as their parents did before them, but they have changed. They are very different to the way their parents used to be, particularly in America. Consumers are rightly very interested in the good the diamond they bought did. They are very interested in things like the carbon footprint of the diamond, and they are very interested in the story one can tell about a diamond.”
Cleaver said with provenance becoming a critical in driving consumer demand, De Beers has invested in Tracr blockchain technology. Tracr is the world’s only distributed diamond blockchain that starts at the source and provides tamper-proof source assurance at scale, enabling Sightholders to provide an immutable record of a diamond’s provenance, and empowering jewellery retailers to have confidence in the origin of the diamonds they purchase.
De Beers started deploying the Tracr blockchain platform at scale for its diamond production earlier in 2022. In the last sight, 100 000 diamonds were uploaded on Tracr.
“The diamond industry has become integrated, from exploration to retail. Gone are the days, when you say what happened at the mine does not matter as long as you buy my diamond. You do not buy the diamond unless you know what happened when the mining started,” Cleaver said.
De Beers, as a key player in the industry, has also been monitoring lab-grown diamonds since they started being produced at large scale in 2017. In a strategic move, in 2018 De Beers announced that it is investing a total of US$94 million over four years in a new Element Six production facility near Portland, Oregon, US, adding to Element Six’s existing UK-based facilities. Once fully operational, the plant was said to be capable of producing upwards of 500,000 rough carats of lab-grown diamonds a year.
“When we launched Lightbox, there were many people trying to sell lab-grown diamonds as the same thing as natural diamonds. They said it is the same thing, and it is cheaper. If they do that, and they are successful, then the natural diamond is going to have a big challenge because every sale of a lab-grown will cannibalize the sale of a natural diamond,” Cleaver stated.
“We launched this business called Lightbox deliberately. We have been pretty successful so far. If you look at the prices of wholesale lab grown, they have come down 90 percent down since we launched, which kind of proves that they are not the same thing because they are 90 percent cheaper than natural diamonds.
“We regard these two as different categories. We regard natural diamonds as our core business for luxury. That’s what we think natural diamonds are. The category of lab-grown diamonds is not going away, it will be here. In our view, it is a legitimate business, but it is fashion, and it is not luxury. It is not expensive.”
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The roles of PAP committees explained
Permanent Committees of the Pan African Parliament facilitate the effective implementation of the policies and objectives of the OAU/AEC.
The PAP Permanent Committees roles were eloquently explained by the PAP President Hon. Chief Fortune Zephania Charumbira when giving a presentation on the mandate of the permanent committees of the PAP on Tuesday in Midrand, South Africa. Charumbira’s words of encouragement come on the backdrop of the Pan African Parliament (PAP) members are attending the PAP Permanent Committee meetings that started on March 5-9 in Midrand, South Africa.
The mandate of PAP is to ensure the full participation of African peoples in the economic development and integration of the continent, therefore the permanent committees provide oversight to ensure effective implementation of policies.
According to Charumbira, effective implementation will drive the Africa Agenda 2063, African Continental Free Trade Area, AU Shared Values, Flagship Projects such the Inga Dam Project, Single African Air Transport Market, among others; and further facilitate attainment of AU Theme of the Year: “The Year of AFCTFTA: Accelerating the AFCFTA Implementation”.
Relatedly, the objectives of the Pan-African Parliament promote the principles of human rights and democracy in Africa; encourage good governance, transparency and accountability in Member States; Promote peace, security and stability; Contribute to a more prosperous future for the peoples of Africa by promoting collective self-reliance and economic recovery; Facilitate cooperation and development in Africa; Strengthen Continental solidarity and build a sense of common destiny among the peoples of Africa; and Facilitate cooperation among Regional Economic Communities and their Parliamentary fora.
THE PAP PERMANENT COMMITTEES
(a) The Committee on Rural Economy, Agriculture, Natural Resources and Environment;
(b) The Committee on Monetary and Financial Affairs;
(c) The Committee on Trade, Customs and Immigration Matters;
(d) The Committee on Cooperation, International Relations and Conflict Resolutions;
(e) The Committee on Transport, Industry, Communications, Energy, Science and Technology;
(f) The Committee on Health, Labor and Social Affairs;
(g) The Committee on Education, Culture, Tourism and Human Resources;
(h) The Committee on Gender, Family, Youth and People with Disability;
(i) The Committee on Justice and Human Rights;
(j) The Committee on Rules, Privileges and Discipline;
The Committees shall handle business that is ordinarily handled by the corresponding Specialized Technical Committee responsible to the Executive Council in accordance with Article 14 of the Constitutive Act.
SPECIFIC FUNCTIONS OF THE COMMITTEES
As for the specific functions of the committees, the Committee on Rural Economy, Agriculture, Natural Resources and Environment amongst other functions: Considers the development of common regional and continental policies in agricultural sector; Assists the Parliament to oversee and assist with the harmonization of policies for rural and agricultural development; and promotes the development policy and the implementation of programs of the Union relating to natural resources and environment.
On the other hand, the Committee on Monetary and Financial Affairs shall, amongst others: Examines the draft estimates of the Parliamentary budget and submit to Parliament; Discusses the budget of the Union and make appropriate recommendations; Examines and report to Parliament on the problems involved in the implementation of the annual budget; and Assists Parliament to execute its role of establishing sound economic, monetary and investment policies.
Meanwhile the Committee on Trade, Customs and Immigration Matters amongst other roles: Considers matters relating to development of sound policy for cross-border, regional and continental concerns within the areas of trade, customs and immigration; Assists the Parliament to oversee relevant organs or institutions and policies of the Union; and Helps the Parliament to oversee external trade.
The Committee on Cooperation, International Relations and Conflict Resolutions shall, amongst others: Considers issues relating to the development of an efficient policy in matters of cooperation and international relations of the Parliament and the Union; Deals with the conventions and protocols linking the Parliament with regional and international institutions and report to the Parliament; Carries out examinations on the revision of Protocols and Treaties of the Union; Assists the Parliament in its efforts of conflict prevention and resolution.
The Committee on Transport, Industry, Communications, Energy, Science and Technology shall, amongst others: Considers issues relating to the development of transport and communications infrastructure; Assists Parliament to oversee the development and implementation of policies of the Union relating to transport, communication, science and technology and industry; Considers issues relating to the use of science and technology for the development of the Continent; Helps Parliament to supervise the development policies and the Union implementation programs for matters of industry, science, technology and energy.
The Committee on Health, Labor and Social Affairs deals with strategies and programs for the improvement of the lives of African peoples; Considers issues relating to regional and international cooperation in strategic planning and implementation of social development and health policies and programs.
The Committee on Education, Culture, Tourism and Human Resources shall, amongst others: Considers issues relating to the development of human resources in Member States;Assists Parliament to promote policy development and implementation of programs of the Union relating to access to education, promotion and preservation of culture and tourism and human resource development.
The Committee on Gender, Family, Youth and People with Disability shall, amongst others: Considers issues relating to the promotion of gender equality; Assists
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I cannot reconcile with Khama – Guma
For the second time now, the Botswana Patriotic Front (BPF) National Executive Committee (NEC) meeting turned into a tribalistic boardroom brawl which turned violet and was ultimately capped off with a resignation from one member of the NEC.
Samson Moyo Guma decided to leave the party after a heated exchange with the party patron Lt Gen Ian Khama who attended the Monday meeting at Arirang virtually. The meeting, according to insiders, started on a good footing with President Biggie Butale asking about the venue of their much anticipated congress.
However, things turned nasty as Butale, after the venue discussion was concluded, asked some NEC members to stop attacking the party in public. The accused included the patron, Deputy Treasurer and Deputy Secretary General. It is then that, Guma pleaded with the patron to always liaise with President Butale before he can issue out any public statement, especially about the party, as the two work together.
“Guma then asked Patron to comment, Khama said he did not have any comment. But Guma then told patron to always inform Butale about anything he intends to do, and that is when all hell broke loose. Khama went berserk, he accused Butale of being a thief who stole party money and accused both of them of being captured and sent by the BDP to destabilize the party. Guma then told him to stop being abusive and that they will not tolerate his autocracy and the whole meeting turned chaotic as some NEC members of Ngwato origin now defended Khama,” said one NEC member who attended the meeting.
Guma was riled according to meeting attendees, and decided to walk out of the meeting and subsequently decided to resign his membership. Butale was also annoyed by the stance taken by some to defend the patron on the basis of being their paramount chief, and he too decided to leave the meeting but did not quit the party. This was after a violet attack between some NEC members. Butale is currently nursing the injuries he sustained when he tried to intervene in a fist fight.
Before all these scenes, one of the agenda items was to suspend the NEC members who disparage other members and the party in public. Failure to execute the plan frustrated both Butale and Guma.
In an interview following a tense meeting that led to his resignation, Guma said the difference between him and Khama is huge and irreconcilable. “I cannot reconcile with him, in fact, no one can reconcile with Khama,” Guma told Weekendpost before he continued. “He should maybe reconcile first with President Mokgweetsi Masisi that is when we can see if it is doable. But for now, I am at peace. I have left him with his party, but I am with the UDC now.”
Some in the party say the party will regret the departure of some key members such as Guma eventually. “We are losing people who add quality to the party. Guma has assisted us with a printing machine for membership cards as well as assisting meaningfully to pay office rent, but since he is gone, we might be in for a hard time.”
The two are, however, expected to meet at Umbrella for Democratic Change (UDC) as the BPF congress will ratify the NEC decision to join the main opposition party. Once they ratify, and if Khama is elected President, he will find Guma in the UDC. However, it is not clear what role Guma will serve in the UDC.
Guma and Khama have been trading blows once it became apparent that the former will contest for the BPF Presidency. Khama wanted anyone else but Guma. Khama’s political wisdom told him no one can beat Guma in the party in the race for the party leadership, but Khama was not confortable with the idea of Guma becoming the leader of the party he founded. Khama then decided to put on political garments and declared his candidature to lead the party. This is contrary to his uncles’ advice to stay away from politics, especially the BPF Presidency.
Khama’s opposition to Guma leading BPF has opened a can of worms, as some believe it corroborates the popular hypothesis saying the party is the project of the Khamas and no one will be allowed to lead it. One political observer opines that, if Guma or Butale could be allowed to lead the party without any interference, it will increase its footprint in the North East, which help in making it a mainstream party, as opposed to the current perfection that it is a Bangwato project.
The BPF has had a turbulent time ever since its patron, who is also a former President, Khama, relocated to South Africa. He said acts of indiscipline and deep divisions rocked the party, something which irked him.
The party’s NEC is set to convene this weekend in Phikwe, but contents of the meeting are a secret.
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More nurses heading for the UK
According to a report, the number of nurses leaving Botswana for better-paying jobs in the United Kingdom has increased significantly. This development has the potential to negatively impact the country’s struggling health sector.
Kenosi Mogorosi, the publicity secretary of the Botswana Nurses Union (BONU), in a letter addressed to union members on March 22, 2023, provides a comprehensive analysis of the factors that have affected the country’s nursing fraternity.
Through an agreement with the National Health Service (NHS), BONU was able to help facilitate the transfer of nurses from Botswana to the UK.
In a letter to the country’s nurses, Mogorosi stated that the recruitment firms Swift Trust and NEU Professionals would be coming to the country to look for 20 adult medical health nurses each.
“Submission of CV’s will be done at Lobatse Cumberland hotel on the 27th of March 2023 and Gaborone BONU offices on the 28 March 2023. Subsequently conducting interviews at Lobatse Cumberland Hotel on the 3rd April 2023 and Gaborone Hilton Garden Hotel on the 4th April 2023,” said Mogorosi.
He added that “This comes short notice because the trust is already in Southern Africa and could not reach its target in Zambia, hence coming to Botswana. All nurses who will be shortlisted for interviews should ensure that they mention that they were referred by BONU for easy coordination of sponsorship including English language tests.”
He also stated that “Since its short notice, nurses need not to travel from far places hence nurses around Lobatse and Gaborone can ensure they do submit their CVS.”
BONU is also working with the UK’s NHS to help its members secure jobs overseas as the country is going through a recruitment drive to address its shortage of 40,000 nurses.
This will increase the nursing vacancy rate in Botswana, which currently stands at over 30%. It is expected to further cripple the country’s already struggling health sector.
Last year, the Essex Partnership University NHS Foundation Trust (EPUT) said it offered roles to more than 60 nurses from Botswana. The Recruitment team at EPUT spent eight days in Botswana interviewing hundreds of nurses interested in a career with the NHS. Nesta Williams, Director of Workforce Transformation and International Recruitment, at the time said said: “We’re delighted that 66 nurses have chosen to take the next step in their nursing career with EPUT.”
“The interview panel was impressed by the applicants’ commitment to their patients, understanding of good team working, and their approach to providing excellent care.
“Some of the nurses are trained in both mental health and physical health, and this means they could choose to work in a range of services.”
The NHS’s clinical workforce is the largest in the world. Nurses play a vital role in delivering person-centered care.
Professor Natalie Hammond, Executive Nurse, said: “The last two years of the pandemic have been extremely challenging. A robust nursing workforce helps us provide safe care, meet the needs of our communities, and is key to achieving our vision be the leading health and wellbeing service in the provision of mental health and community care.”
“It’s an exciting time; our EPUT clinicians will have opportunities to share their experience and expertise with our new colleagues from Botswana.”
A recruitment team of the Essex Partnership University NHS Trust spent eight days in Botswana two weeks ago during which they say they interviewed “hundreds of applicants” who want to work in the UK.
In the first round of their recruitment campaign in Botswana, the NHS had hired 66 nurses from the huge parade of applicants and revealed that more recruitments are expected to follow.
Indications are that a nurse in England earns an average P52 000 per month; and the figure goes up to P70 000 for a nurse in Ireland and other places in the UK. In Botswana a registered nurse earns between P12 000 and P20 000.