Globally it is broadly accepted that the creation of a Sustainable future for Africa lies in its ability to develop and maximise the continent’s abundant natural resources.
Botswana is on-going proof that, given good governance and the appropriate laws, diamond revenues can contribute significantly to the economy in countries where they are sourced, fuelling economic and social development. It is largely thanks to the highly effective partnership between the Government of the Republic of Botswana and De Beers, underpinned by the sound management and strategic foresight of Botswana’s government, that the country has become a widely admired example of progressive African development.
Spend with Botswana-based companiesBWP 4,037 million
Spend on citizen-owned
companiesBWP 694 million
Assessed and registered into our Supply Chain134 new citizen-owned companies
BOTSWANA’S LARGEST INDUSTRY
Botswana is the world’s largest diamond producer by value, producing about 21% of global output. Debswana is the largest producer of rough diamonds in the De Beers Group of Companies, as well as being Botswana’s largest taxpayer. Roughly 80% of the profits generated by Debswana is accrued as government revenue for the benefit of the people of Botswana. Diamond mining is the single largest industry in Botswana and has been a catalyst for national development in a myriad ways, including community upliftment, skills enhancement and as a promoter of economic diversification. Debswana is the largest corporate contributor to the socio-economic development of Botswana.
In addition to the returns our mining operations generated for its shareholders, we contribute to local economic development through:
- Direct employment and the employment of local contractors;
- Preferential procurement from local and citizen suppliers; and
- Enterprise development and social investment.
Debswana has a preferred procurement policy which emphasises and supports the development of local business. Our citizen spend and local procurement spend in 2014 amounted to more than BWP 5.4 billion. Debswana also assessed and registered 134 new citizen-owned companies into the company’s supply chain system during 2014.
Debswana procurement spend (BWP million)
|Local Spend||4, 037||4,110||2,981|
|Non-Botswana Spend||1, 425||1,372||1,096|
|Total Spend||5, 463||5,483||4,600|
|% Citizen vs local spend||17%||16%||17%|
A new enterprise development programme called Tokafala (meaning 'to improve') was launched in 2014. The programme which is a partnership between Debswana, De Beers, Anglo American and the Botswana government, aims to promote ecnomic development and stimulate employement creation by supporting small, medium and micro enterprises (SMMEs) both financially and access to markets.
In addition to loans and seed funding, a key aim of Tokafala is to improve the access of SMMEs to markets and supply chains, and to create links to business opportunities with Debswana, De Beers global sales function in Gaborone and other partners.
Over a three-year period, Tokafala aims to support 560 micro and 415 small to medium enterprises, creating or maintianing up to 5 600 jobs. The programme will also prvide capacity building to government enterprise development institutions in Botswana, such as the Poverty Eradication Programme (PEP).