De Beers spends N$2,8b on local procurement

DE BEERS Group and its joint venture partners invested N$2,8 billion purchasing goods and services in Namibia in 2016, according to the company’s latest Report to Society, published this week.

The spending with Namibian-based businesses covered a diverse range of suppliers for Namdeb and Debmarine Namibia during one of the most significant years in the company’s history, the company said in a statement this week.

De Beers Group and its joint venture partners also invested N$86 million in community development initiatives in Namibia over the course of last year, the company said.

“This included launching a N$10 million partnership with the University of Namibia Southern Campus to support underprivileged students – of which at least 50% will be female – with their studies,” the company said.

Funding from the company and its partners also helped to establish a new art school at Oranjemund, provide clothing and food to disadvantaged people across a number of communities and donate IT equipment to schools, said De Beers.

Globally, De Beers Group returned US$5 billion to stakeholders in 2016 – a 26% 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 investment came in the same year that the company signed its longest ever sales and marketing agreement with the Namibian government.

The new 10-year agreement means that more Namibian diamonds will be sold in the country for the purpose of supporting the domestic cutting and polishing sector, and providing a platform for greater sustainability in the industry.

The report also highlights that in Namibia, De Beers Group and its joint ventures:

• Spent more than N$56 million on training of employees;

• Signed a partnership agreement for a new wind farm capable of generating around 17% of Namdeb’s total electricity needs.

Bruce Cleaver, CEO of De Beers Group and chairman of Namdeb Holdings commented: “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 provide additional support to smaller businesses, which are the unsung heroes of the country’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,” said Cleaver.