Developing the diamond cutting and polishing industry in Namibia

Abstract

Namibia has high levels of unemployment and poverty among its people despite being endowed with a high level of mineral resources that are perceived to be drivers of industrial development, economic growth, employment creation, and poverty reduction. Diamond is one of the valuable mineral resources in Namibia, and the country is one of the large diamond producing countries in the world. However, most of the valueadded diamond products in the global value chain are produced abroad, despite implementing the diamond value addition policy in 2007 in Namibia. There is a knowledge gap around the level of progress in the development of the diamond cutting and polishing industry in the Namibian economy. The question is, “To what extent has the Namibian diamond cutting and polishing industry been successful, and how can this success be explained?” The study adopted a qualitative evaluative case study approach to determine the performance of the diamond industry in Namibia. The study was done using literature review and primary data collection through interviews with various stakeholders of the diamond industry in Namibia and the neighbouring Botswana and South Africa. A sample of 28 interviewees was drawn from diamond industry stakeholders in Namibia, Botswana, and South Africa using the non-probability purposive sampling method. The data collected was analysed qualitatively, and the findings revealed that the Namibian diamond industry has made some considerable gains, but more can be done through the removal of constraints. The challenges affecting the Namibian diamond industry are counter-production, tripartite security policy, and expensive labour costs of production. Following the identified challenges, it is recommended that Namibia must develop comprehensive legislation and policies that are directly focused on the growth of the diamond industry, with clear objectives and targets.