Investment in people and infrastructure

This takes place at all levels of our business and includes indirect empowerment through preferential procurement, enterprise development and social investment.

Equity ownership
Equity partnerships with local communities and governments are a critical part of the De Beers business model in Africa.

This approach has played a key role in enabling a shared sense of responsibility and the ultimate success of our operations. All of our mining companies in Africa are part owned by either governments or empowered communities.

Debswana is 50% owned by the Government of the Republic of Botswana (GRB).  Namdeb is 50% owned by the Government of the Republic of Namibia (GRN).

This ensures producer countries receive additional dividends through their shareholdings. The GRB also owns a 15% stake in De Beers.

In South Africa, the sale of a 26% equity interest in De Beers Consolidated Mines (DBCM) in 2006 to Ponahalo Holdings enabled De Beers to meet the ownership element of the Mining Charter significantly ahead of the legal requirement. The charter requires 26% Historically Disadvantaged South African (HDSA) ownership of all extractive companies by 2014. 

Ponahalo Holdings is a broad-based Black Economic Empowerment (BEE) company that includes trusts for employees of De Beers, historically disadvantaged women, people with disabilities and communities around our DBCM mines. It is 90% owned by HDSAs and 50% owned by DBCM employees and pensioners, with at least 27% overall participation by women.

Preferential procurement
Preferential procurement helps ensure that mining revenues stimulate growth in other sectors. It also helps offset any historical economic inequalities.

Procurement arrangements form a critical component of the De Beers strategy for driving economic development wherever it operates.

Procurement policies and procedures are most developed in South Africa, Botswana and Namibia and are being extended to other operations including De Beers Canada.

Each of our operations also works with existing suppliers to assist them in their transition to becoming BEE owned and “transformed” businesses.

The size of the Botswana economy has an implication for the nature and size of firms able to establish themselves in the country. Historically South African companies have met most of Debswana’s supply requirements.

Debswana aims to address this imbalance and stimulate local economic diversification by encouraging foreign direct investment, joint ventures with suppliers, SME development and increasing its expenditure with companies owned by Batswana citizens.

The Namdeb BEE Policy provides guidance on how the company can contribute to Namibian transformational requirements and the national Vision 2030 development strategy.

It aims to foster a culture of entrepreneurship among Historically Disadvantaged Namibians (HDNs), promote the development of commercially viable and sustainable businesses, and facilitate the transfer of capacity to Namibian suppliers.

Specific guidance on the identification and prioritisation of historically disadvantaged local suppliers is given through the Namdeb Preferential Procurement Policy that requires the accreditation of a supplier’s BEE status.

Preference is given to enterprises owned by HDNs, BEE enterprises and Namibian enterprises. The Namibian Preferential Procurement Council (NPPC) is working with the government to develop consistent HDN criteria and guidance.

Capital investment
Our capital investments are focused primarily on exploration for new diamond deposits, mine or project development, “stay-in-business” and maintenance investment on existing operations and, where appropriate, on expansion programmes at existing mines.

The initiation of new projects provides economic benefits to a diverse range of stakeholder groups by creating employment, generating income and direct procurement spending, and improving regional economic development by catalysing further investment and the development of local businesses.

Mines are usually located in remote and inaccessible areas, necessitating the development of new infrastructure. The provision of such infrastructure can benefit local communities and host countries by providing better access to key utilities, education and healthcare.