Report Highlights Local Spending in Milestone Year in Namibia
De Beers Group gave the Namibian economy a major financial injection in 2016 and invested heavily in local communities, according to the company’s latest Report to Society.
The spending by the company and its joint venture partners on goods and services in the country reached N$2.8 billion (US$192 million) and covered a diverse range of suppliers for Namdeb and Debmarine Namibia.
And it came in one of the most significant years of the company’s history in Namibia, when it signed its longest ever sales and marketing agreement with the Government of the Republic of Namibia.
The new 10-year agreement means that more of Namibia’s diamonds will be sold in-country to support the domestic cutting and polishing sector, providing a platform for greater sustainability in the local diamond industry. It also gives the government a reliable route to market for its diamonds.
Bruce Cleaver, CEO, De Beers Group, and Chairman, Namdeb Holdings, said: “I am proud that we were able to put the Namibian supply chain to work last year by procuring goods and services with local companies. Aside from the revenues generated by the investment, this would have helped to secure jobs and provided additional support to smaller businesses, which are the unsung heroes of Namibia’s economy.
“More broadly, the country’s diamonds, already a major contributor to socio-economic development, now have the opportunity to play an ever more important role in shaping Namibia’s future and that of its people as a result of the new sales agreement.
“This year, we look forward to further business and community investments that will help both Namibia and De Beers Group achieve mutual success in a safe and sustainable way.”
De Beers Group and its joint ventures also invested N$86 million (US$5.9 million) in community development initiatives in Namibia during the year, including the launch of a N$10 million (US$650,000) partnership with the University of Namibia Southern Campus to support underprivileged students with their studies. At least 50 per cent of the students will be female.
Funding also helped to establish a new art school in Oranjemund, provide clothing and food to disadvantaged people across a number of communities and donate IT equipment to schools.
The Report, published on 4 May, highlights that more than N$56 million (US$3.9 million) was spent on training for employees in Namibia, and a partnership agreement was signed for a new wind farm capable of generating around 17 per cent of Namdeb’s total electricity use.
Globally, De Beers Group and its joint ventures returned US$5 billion to stakeholders in 2016 – a 26 per cent rise on 2015 – through taxes, payments and dividends, emphasising the importance of the relationships with stakeholders, including governments, communities, suppliers and joint venture partners.
The Report to Society 2016 can be viewed online at www.debeersgroup.com/reporttosociety.
About De Beers
De Beers is a member of the Anglo American plc group. Established in 1888, De Beers is the world’s leading diamond company with expertise in the exploration, mining and marketing of diamonds. Together with its joint venture partners, De Beers employs more than 20,000 people across the diamond pipeline and is the world’s largest diamond producer by value, with mining operations in Botswana, Canada, Namibia and South Africa. As part of the company’s operating philosophy, the people of De Beers are committed to ‘Building Forever’ by making a lasting contribution to the communities in which they live and work, and transforming natural resources into shared national wealth. For further information about De Beers, visit www.debeersgroup.com.
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