Economics

Diamonds continue to make a significant contribution to development in southern Africa.

Nicky Oppenheimer and the South African Minister of Minerals and Energy, Buyelwa Sonjica, at the earth turning ceremony of the Voorspoed mine

Nicky Oppenheimer and the South African Minister of Minerals and Energy, Buyelwa Sonjica, at the earth turning ceremony of the Voorspoed mine

This contribution has been most marked in Botswana and Namibia, where diamonds remain the largest single contributor to Gross Domestic Product (GDP), export earnings and government revenues.

For the African diamond producing countries, beneficiation is an essential part of macroeconomic policy designed to uplift their economies, to provide education, jobs and healthcare ... and to make poverty history.

Gareth Penny, Managing Director, De Beers, Report to Society 2008

The rapid development of Botswana and the success of De Beers, since
we partnered with the Government of the Republic of Botswana (GRB) in 1967, illustrates how the effective integration of both company and national development objectives can lead to the development of a powerful business model.

This model is based on the convergence of two compatible aims:

First, our need for long term access to natural resources in a secure and stable environment.

Second, a government’s need to generate reliable revenues from natural resources to invest in its people.

This model is particularly important in diamond mining given the long lead times before investment in a mine returns a profit and the fact that the life of a diamond mine is typically measured in decades rather than years.

We believe that this business model based on forging effective mutually beneficial partnerships enables the transformation of natural resources
into shared and lasting national wealth.

Did you know?

US $1.2 billion was paid in taxes and royalties to governments in southern Africa

Issues and important questions that are addressed in the Report to Society 2008:

  • Impact of the global economic downturn
  • Governance, revenues and taxes
  • The private sector role in African Development
  • Diversification
  • Beneficiation
  • Government partnerships
  • Local employment and skills development
  • Planning for closure 

2008 Performance