Namibia Desert Diamonds (Pty) Ltd (Namdia) today announced a dividend handover to its shareholder of N$300 million.
The state-owned diamond marketing company has seen improved fortunes during the year 2022/2023, and has thus doubled its dividend amount compared to the year 2021/2022.
At the handover of the dividend today in Windhoek the chairperson of Namdia Board of Directors Mr Bryan Eiseb said that the doubled dividend is the company’s highest ever.
“This achievement is a testament to the hard work, dedication, and resilience of our entire team, and it underscores the strength of our business model and the new 5-year strategic plan adopted by the Board and approved by the Minister of Finance and Public Enterprises,” Eiseb said.
“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.
“As we celebrate this milestone, let us not forget that our journey is far from over, the current global economic conditions have a detrimental impact on consumer behaviour, especially for luxury goods.”
Eiseb added that 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.”
He pointed out that the company is “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.”
He also stated that the challenges Namdia is facing currently seem more structural than cyclical because of the pressure being exerted by synthetic diamonds in certain categories.
“Despite these risks, we must not forget that synthetic diamonds have not yet proven that they are a lasting alternative to natural diamonds, nor can they serve as a store of value.”
Natural diamonds in contrast, Eiseb said, have displayed that their natural beauty coupled with their natural formation process remains a store of value and a “woman’s best friend”.
“At NAMDIA, we will continue to explore new horizons and adapt to changing market dynamics.”
The dividend declaration was made in the presence of the Deputy Minister of Finance and Public Enterprises Mrs Maureen Hinda-Mbuende, and the Deputy Minister of Mines and Energy Ms Kornelia Shilunga.
In the photo: Mr Bryan Eiseb and Namdia CEO Ms Alisa Amupolo handing over the dividend declaration to Deputy Ministers Maureen Hinda-Mbuende and Kornelia Shilunga.
