Botswana's World Diamond Ambitions Take Shape Wanetsha Mosinyi Staff Writer

The opening of the ABN AMRO Bank in Botswana on Thursday signalled the country's ambitious intentions to rival Dubai and Antwerp as a world diamond centre. Advertisement Advertise Here The bank and its partners have come up with a specific package to finance Botswana's diamond industry.

The opening of the bank in Botswana comes less than a week after government went into high gear in its bid to become a leading rough diamond trading centre by inviting a number of international rough dealers - virtually all DTC Sightholders - to apply for a Precious Stones Dealers Licence. Underscoring these intentions at the official opening of ABN AMRO Bank Botswana at the Diamond Technology Park, Vice President Mompati Merafhe said the bank's opening will make the country "sparkle even more".

He stated that the opening of ABN AMRO office in Botswana is indeed a second jewel in the crown after the establishment of DTC. He said finance is a vital component of any emerging diamond centre and in Botswana's case, it is crucial for development and success of the Diamond Hub. "Diamond activities thrive on specialised financing, and therefore for Botswana to prosper as a world diamond centre, the presence of a bank with global expertise in the diamond industry is crucial." To stake a claim to its rightful status, Botswana through the IFSC has managed to convince ABN AMRO's International Diamond and Jewellery Group (IDJG) to close its Johannesburg office and make Botswana the centre of its operations in Africa. This makes ABN AMRO Botswana the only bank in the country with two licences - one for banking services and one for international business.

Through a joint venture with Lazare Kaplan International and the Overseas Private Investment Corporation (OPIC), ABN AMRO will provide up to $83 million in revolving credits as part of the total facility to local Sightholders. The partnership involves a $333 million revolving facility in which OPIC will share credit risk for up to $250 million in loans to Botswana-based diamond polishing companies. Group CEO of ABN AMRO and IDJG Victor van der Kwast told Monitor Business at the opening ceremony that the offshore licence allows them to assist international rough diamond dealers who Botswana is currently luring to its second diamond revolution since the founding of Orapa kimberlite in 1967.

In its quest to become the next world diamond centre, Botswana has created a Diamond Hub coordinated by Dr. Akolang Tombale who announced at a conference earlier this year that the country is creating a parallel trading platform away from the current arrangement with De Beers. The parallel trading arrangement is envisaged to help Botswana attract traders and independent diamond producers.