STAFF WRITER
DEPUTY prime minister and minister of Industry and Mines, Natangue Ithete says Namibia will receive about N$70 million worth of investments in the next twelve months from Sight Holders despite a plunge in diamond prices and interest globally.
He told parliament on Monday that the investment is an addition to the N$500 million made by the Namibia Diamond Trading Companies (NDTC) Sight Holders companies so far.
Ithete was answering questions earlier raised by Landless People’s Movement (LPM) member of parliament Eneas Emvula on how Sight Holders are selected in Namibia.
Emvula also asked a plethora of questions including how the Sight Holders are developing Namibia skills as reinvesting locally.
“In enhancing infrastructure and technology in their Namibian operations since 2021 with a further N$70 million envisaged to be invested over the next 12 months as several Sight holders expand their operations and c a p a c i t y in Namibia.
“At present the employment status is as follows:
The 15 factories currently employ a total of 1,430 direct workers of approximately 1,160 (81%) are Namibian citizens and 270 (19%) are expatriates.NDTC Customers (Sightholders a n d EDP companies)
account for 1,225 (86%) of the total employment in the cutting a polishing industry. Moreover, 62 Namibians hold management positions in the 12 Factories all together,” Ithete told parliament.
He said the 15 Namibian cutting and polishing factories have processed and exported more than N$ 21 billion worth of polished diamonds over the period 2021 – 2024.
He said this constituted over N$ 7 billion worth of polished diamonds being exported during the 2022 financial year. According to Ithete Namibia is looking at ways of improving loc benefits from precious stones.
“The Ministry of Industries, Mines and Energy as a regulator is guided by the Diamond Act 13 of 1999. The Act makes provisions for Namibians and Non-Namibians to participate in the diamond value chain if they are fully licenced. Therefore, there is not any form of exclusion or discrimination in terms of participating in the Namibian diamond sector,” Ithete said.
He said his ministry is finalizing a framework to ensure Namibia’s benefits a r e improved in the Diamond sector and any other mineral resources sector in the country.
Ithete explained that all Sight Holders in Namibia are expected to meet stringent criteria set by the NDTC Board-approved allocation framework.
He said part of the criterion is for Sight Holders to meet the finance compliance criteria which allows them to declare its financial accounts in accordance with International Financial Report Standards (IFRS), have financial accounts approved by an auditor and have a maximum debt to equity ratio of 70% to 30%.
“NDTC Sight holders are required to comply in full of the Financial Compliance Criteria on a continued basis throughout the duration of the supply period.
NDTC Sight Holders are required, throughout the duration of the supply period, to have a fully operational cutting and polishing facility in Namibia,” he said.
Ithete also added that to be eligible for supply, a n d maintaining Sight Holder status, the Sight Holder must meet a minimum purchases threshold of N$270 million ( approximately US$15million).
“This is to ensure Sight Holders can support their Namibian factories with the critical level of rough supply that enhances the viability a n d sustainability of the Namibian operations,” he said.
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