NAMDIA doubles dividends to the government in fiscal year 2022/2023
In its latest annual report, Namib Desert Diamonds (NAMDIA) reported a N$300 million dividend to the government on 27 September. This is the company’s highest dividend ever in its history since its inception.
This success builds on past years’ dividend declarations: N$50 million in 2018/2019, N$80 million in 2019/2020, N$40 million in 2020/2021, and N$150 million in 2021/2022.
NAMDIA’s fiscal year 2023 annual report – spanning 01 March 2022 through 28 February 2023 – chronicles an in-depth examination of its operations, financial performance, sustainability initiatives, and vision for the future. It also reaffirms NAMDIA’s commitment to transparency, accountability, and exemplary governance practices, according to the company.
“This dividend represents more than just a financial transaction. It is a reaffirmation of our commitment to the people of Namibia, including our partnership with the government and fellow Namibians whom we serve,” said Bryan Eiseb, the Chairperson of the NAMDIA Board of Directors.
Eiseb continued: “The current global economic conditions have a detrimental impact on consumer behaviour, especially for luxury goods. The international diamond market is on its back foot and remains fragile and unpredictable. Apart from consumer behaviour, there are other factors like new trade requirements for rough diamonds, and revised import regulations being imposed in certain regions such as the EU that requires the rethinking of our business. In addition, we are currently experiencing a downturn in prices of certain categories of diamonds which are lower when compared with the low prices achieved during the recent COVID-19 crisis. We are also witnessing a slowdown in the Indian market on polished diamonds, which indicates stockpiling trends. As a result, we need to be more agile in our business tactics and strategies.”
Furthermore, the fiscal year 2022/2023 witnessed NAMDIA’s “strongest” performance, with revenue reaching N$3.1 billion. Moreover, another milestone in the report shows that the company has invested over N$40 million in corporate social responsibility (CSR) initiatives via its NAMDIA Foundation, established in 2018.
“The Foundation lent a structured approach to our CSR initiatives and highlighted the power of Namibian diamonds to drive positive change and enhance the lives of Namibians. Our hybrid selling method, which includes direct sales and competitive bidding, enabled the realization of our diversified business model and led to exceptional results coupled with increased production and favourable market conditions,” asserted Alisa Amupolo, Chief Executive of NAMDIA.
According to the report, during the second quarter of 2022, high inflation in the United States, the biggest consumer of diamonds, and a resurgence of COVID-19 in China, which prompted restrictions on movement and commerce, placed additional pressure on the diamond industry.
“Together with the Russia-Ukraine war, these factors affected global economic sentiment and, in turn, demand for diamonds. Despite these challenges, US consumer spending on jewellery remained steady,” it stated.
Toini Ashipala, Human Resources Officer at NAMDIA said: “I would like to emphasize that NAMDIA’s journey is far from over. We remain committed to innovation and sustainable development. Our vision for the future is bold, and it is built on the strong foundation of our past achievements.”
“We need to intensify our quest for value addition locally and will soon consider selling our diamonds primarily to those clients and companies that have shown a committed interest in Namibia by investing locally in cutting and polishing factories. However, we believe that more can be done to support the local beneficiation. The time has now come for NAMDIA to consider partnering with those willing institutions and entering the downstream market of local jewellery manufacturing, which will catalyze for NAMIBIA to become competitive in the luxury diamond brand market. We can certainly not export our diamonds in rough form anymore; that has happened for the last 100 years and has proven not to optimally benefit Namibians,” Eiseb commented.