- Lesedi La Rona
- Buy diamond in Africa
- Discovery of diamond in Botswana
- Reinvestment in the future of Botswana
Buy diamond from Botswana?
14 Jul 21
Lesedi La Rona
The second biggest diamond ever was discovered at the end of 2015 in the Karowe mine (AK6) in the South-African country Botswana. Only the Cullinan diamond (3106,75 carat) exceeds the rough diamond found in Botswana. The valuable African gemstone of 1109 carat was called 'Lesedi La Rona', which can be translated as 'Our Light' in the Tswana. The government organized a competition where the citizens of Botswana could make a proposition for the name. Whoever that wants to buy the diamond will have to pay 70 million USD. A Sotheby’s auction in 2016 was unsuccessful because the requested minimum amount was not reached.
Buy diamond in Africa
The discovery of the diamond has not been a blessing for all the parts of Africa. In recent history, the demise on a regular basis was accompanied by the exploitation of workers, environmental destruction, government corruption and waste of incomes. As a result of these practices, conflict diamonds were used in various African countries to afford civil wars. To buy diamond in favor of rebel groups, however, was often unconsciously caused by false certification.
The story of the diamond in Botswana is however different. Keith Jefferis, economist and former deputy governor of the Central Bank of Botswana describes it as: "40 years as well-managed good luck". Botswana was thought to have no valuable commodities for decades, especially during the British protectorate. During the British regime, there was barely invested in infrastructure, but the natural resources were kept (unconsciously).
Discovery of the diamond in Botswana
A year after Botswana was once again declared independent (in 1966), the first diamonds were discovered. It took however a long time until men realized how valuable the ground in Botswana truly was. Buying and selling diamonds was a nonexistent industry in Botswana. Jefferis emphasizes that "infrastructure work was necessary as nothing was done structurally during the colonial period".
Reinvestment in the future of Botswana
Once the diamond sector was up and running in Botswana, there was a strong consensus that the proceeds of diamond sales had to be invested in the future of Botswana. The priorities were investments in schools, roads and water facilities in houses and farms.
"The principle," explains Jefferis, "was that all the income of mining (an disposable asset) had to be reinvested in a new national asset". In other words, profits had to be invested in sustainable projects that would create value and well-being in the long term for the entire country.
This principle was also taken into account in negotiations with companies that wanted to mine Botswana. Botswana is still the shareholder of most major mines through a joint ownership deal.
If you have questions about buying diamonds from Botswana or other specific countries, you can always ask objective advice and assistance from the experts of BNT Diamonds. Always the best investment and to your wishes.
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With this article, BNT Diamonds strives to inform you thoroughly about investing in diamonds. No investment can be guaranteed to be without risk or fully according to your expectations. That is why we recommend to research the risks and aspects of investing in diamond properly to ensure that you make the right choice for your portfolio.
