..Only five Namibian firms picked, while 27 foreign firms make the list to sell Namibian diamonds
TIRI MASAWI
The selection process of companies approved to trade Namibia’s rough diamonds over the next three years has come under scrutiny, after only five of 11 Namibian applicants made the cut.
Sources in the diamond industry alleges that some senior Namdia managers used their influence to favour friends and companies linked to people they know.
Namdia denies any wrongdoing and says the selection was conducted according to established criteria and independently reviewed.
The dispute centres on the selection of 32 companies that will sell and market Namdia’s rough diamonds during the 2026/27 to 2028/29 financial years.
Only five of the 32 selected companies are Namibian.
A source questioned why several local companies that have the capacity, security and international standards required to trade diamonds were left out.
“There are quite a number of local companies that have potential, security and meet the international standards to trade in diamonds but were cut out because some people in Namdia’s top echelons of power used their influence to favour their friends and companies that are linked to people that they know,” the source said.
Another source said Namdia should explain to unsuccessful local applicants why they did not make the list.
“It is imperative that under such circumstances Namdia should explain to locals that did not meet the trading list what their limitations were. They need to let local companies understand why the list is dominated by foreign entities, some of which work with influential personalities within the system and obviously disadvantages locally,” the source said.
The allegations have not been substantiated, and Namdia says it has no evidence that its senior managers improperly influenced the process.
Namdia spokesperson Beverley Coussement said the company would investigate if credible evidence of misconduct was presented.
“Should credible evidence of misconduct be presented, such a matter would be dealt with through Namdia’s established governance processes,” Coussement said.
She said the appointment of clients was based on established evaluation criteria and that internal governance procedures were followed.
The process, she said, was also subjected to an independent internal audit review.
“The review confirmed that the process was undertaken in line with the approved client selection criteria,” she said.
According to Coussement, all applicants who reached the prescribed 50% threshold were included in the final list of qualifying clients.
But the selection has left a sharp question over local participation.
Of the 11 Namibian companies that applied, only five were selected.
The five are Avalon Diamonds Namibia, Gayane Trading, Fine Star Jewellery and Diamonds Namibia Pty Ltd, Sinco Investments and Stargems Manufacturing Namibia Pty Ltd.
Coussement said the five represent an increase from two Namibian clients in the previous sales cycle.
She said the assessment considered annual turnover, financial capability, industry experience, branding and collaboration proposals, local beneficiation and ownership, with each criterion carrying a specific weighting.
Namdia’s limited diamond allocation, she said, also meant the company had to balance local participation with its commercial mandate of achieving optimal price discovery and maximising the value of Namibia’s diamonds.
The 32 companies were selected from applications received from Namibia, Belgium, the United Arab Emirates, India, Hong Kong, Israel, Singapore, the United States, Armenia and Zimbabwe.
The selected companies, known as sightholders, are approved buyers that purchase, market and distribute Namibia’s rough natural diamonds to the global market.
They receive exclusive rights to participate in Namdia sales cycles and buy rough diamonds directly from NAMDIA’s allocation.
Namdia previously said that, based on current production forecasts and its 15% purchase entitlement, it expects to sell about 928 350 carats over the next three financial years.
The stakes are significant.
In the 2024/25 financial year, Namdoa traded 218 674.92 carats, generating N$1.64 billion.
In 2023/24, it traded 426 059.00 carats, generating N$2.53 billion, while in 2022/23 it traded 278 609.00 carats, generating N$3.11 billion.
Coussement said the number of Namibian companies selected should not be interpreted as an assessment of the ability or competence of the local diamond industry.
“There is no guarantee of selection, as all applications are evaluated based on the established criteria and the overall alignment with NAMDIA’s strategic objectives and diamond availability,” she said.
She said Namdia’s Client Registration Policy gives local beneficiation clients a distinct advantage, with local participation defined as ownership of no less than 15% of equity shares by Namibian citizens.
The source, however, believes the selection warrants scrutiny and has called for an investigation by the Anti-Corruption Commission (ACC).
For now, the ACC says it has not opened an investigation.
“Thank you for your inquiry. The Anti-Corruption Commission is not investigating this matter,” ACC spokesperson Marina Matundu said.
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