Botswana Bank to Invest in Diamond Beneficiation Sector

Stanbic Bank Botswana has announced that it plans to use capital it recently raised through listed P2 billion (~$300 million) bonds to finance Botswana’s diamond beneficiation industry, among other infrastructure developments, Mmegi reported.

Stanbic Managing Director Dennis Kennedy commented that the bonds were listed to provide the institution with a healthy balance sheet, allowing it to lend money and play a significant role in the development of Botswana’s economy, in part through funding general mining and diamond cutting and polishing operations.

To date, a total of 16 cutting and polishing companies have been licensed in Botswana. Polished production from the country is expected to grow from approximately $60 million in 2006 to upwards of $500 million by 2009.

According to the most recently released results, Botswana exported P6.4 billion ($960 million) worth of diamonds in the first quarter of 2008, up from P3.9 billion ($585 million) in the last quarter of 2007.

The bank has presently been involved in injecting funds into the expansion of a coal mining project, a copper miner’s note issue program and advising the government in a P5 billion ($764 million) bond issue.

Kennedy noted that there are plenty of investment opportunities in Botswana that will support local development, including a new university and airport and power station expansion projects.