By: Hertha Ekandjo

Namibia’s diamond sales and marketing entity, Namib Desert Diamonds (Namdia) concluded nine diamond sales, with its purchase entitlement increasing by 24.9% from 222,978 to 278,609 carats during the 2022/2023 financial year.

This was revealed by the Namibia’s Chief Operations Officer, Uahoroka Kauta during the launch of the company’s annual report for the financial year from 01 March 2022 to 28 February 2023 on Wednesday, in Windhoek.

Kauta also declared a record dividend of N$ 300 million to the government after an impressive performance during the 2022-23 financial year

During the financial year, the average buying price was N$11,039 (US$581) per carat and the average selling price N$12,711 (US$669) per carat, translating to margins of 15.2% above Standard Selling Value (SSV), the company’s highest since its establishment.

This increase was made possible by the 46% increase in Namibia’s rough diamond production, from 1.467 million carats in 2021 to 2.137 million carats in 2022, mainly due to the inauguration of the diamond recovery vessel, Benguela Gem in March 2022.

The vessel enabled Debmarine Namibia to up production by 52%, from 1.137 million carats in 2021 to 1.725 million carats in 2022 mostly due to the increased production of Namibian diamonds.

According to Kauta, Namdia held its first competitive bidding sale in February 2022. The new selling method is made up of 60% direct sales and 40% competitive bidding and serves to optimise and obtain the best sales value for Namibian diamonds.

In March 2022, Namdia increased its client base from 16 clients to 36 clients according to the selection process outlined in the company’s client selection policy.

The company’s revenue for the 2022/2023 financial year amounted to N$3.1 billion, an increase of 63% compared to the N$1.9 billion achieved in the previous year.

The company recorded a gross profit of N$628 million (2021/2022: N$284 million), resulting in a profit before tax of N$612 million (2021/2022: N$218 million) and a profit after tax of N$409 million (2021/2022: N$144 million).

The N$300 million dividend declaration to the government is Namdia’s biggest dividend since its establishment in 2016. Dividends declared in previous years: N$ 50 million for 2018/2019, N$ 80 million for 2019/2020, N$ 40 million for 2020/2021, and N$ 150 million in 2021/2022.

During the presentation of the company’s strategic performance, Namdia’s Chief Executive Officer Alisa Amupolo, illuminated key performance indicators and provided an overview of Namdia’s strategic objectives as it continues to execute its 5-year strategic plan which was crafted in FY2022/2023.

She highlighted that the FY2022/2023 saw the company’s strongest performance since inception, with revenue reaching N$3.1 billion.

“Namdia’s hybrid selling method, which includes direct sales and competitive bidding, enabled the realisation of a diversified business model and led to exceptional results coupled with increased production and favourable market conditions,” Amupolo indicated.

Namdia`s Board Chairperson, Bryan Eiseb, said given the fact that the international marketplace shows a great demand for Namibian rough diamonds, the company is closely monitoring global trends and adjusting its strategies accordingly.

“We have observed that several factors, such as the Covid-19 pandemic, lab-grown diamonds, technological advancements and current global geo-political tensions, have impacted the global diamond industry. Nevertheless, we are pleased to note a rebound in the diamond industry,” Eiseb expressed.

He said Namdia is interested in the recovery of rough diamond sales, which increased by more than 60% in 2021, with Russia, Canada and Botswana leading the way in production.

Eiseb clarified that the company was well aware of the current shortage of rough diamonds in the international market due to the ongoing Russia-Ukraine conflict and resultant sanctions on Russian produced diamonds.

“Despite these challenges and uncertainties in the diamond industry, we see an opportunity to increase our market share and meet the growing demand for Namibian rough diamonds in the international market,” he pointed out.

“Thus, we remain committed to analysing, planning and adjusting our strategies to ensure that we continue to be a valuable player in the domestic and global diamond industry,” Eiseb stressed.

Namdia is the rough diamond sales and marketing channel of the Namibian government.

In terms of the Diamond Sales and Marketing Agreement, Namdia is entitled to purchase, on behalf of government, 15% of the representative cut-off of Namdeb Holdings’ total run-of-mine production per annum, from the Namibia Diamond Trading Company (NDTC).