CHAMWE KAIRA
Namib Desert Diamonds (Pty) Ltd or Namdia is expected to pay N$300 million in dividends to the government in the current financial year, the company revealed this during a presentation on Monday.
In 2021/22, the company declared a dividend of N$150 million compared to N$40 million the previous year. In the 2019/20 financial year, Namdia declared a profit of N$80 million compared to N$50 million in 2018/2019.
The company has been growing its profit after tax from N$61 million in 2016/2017 to N$409 million in 2022/2023 in 2022/2023.
The amount of carats sold by the company has increased from 117,031 in 2016/2017 to 278,609 in 2022/2023.
Income tax and levies to the government have increased from N$93.6 million in 2017/2018 to N$232 million in 2022/2023.
Factors that are expected to impact the diamond industry include high polished diamond inventory in the mid-stream, provenance and traceability.
Namdia comprises, the Namdia Foundation, Eumbo Properties Investments and the Namgem Diamond Manufacturing that was acquired in 2021.
The acquisition of NamGem is aimed to assist Namdia in beneficiation in future years. The factory is currently on lease to a client. The Namdia Foundation was established in 2019 as a nonprofit association incorporated under section 21 of the companies act as the vehicle through which Namdia drives its corporate social responsibility initiatives.
The Eumbo Property Investment is a property investments and management company. The company is currently exploring possibility of developing a world class facility that will catapult the downstream beneficiation model and local value into polished product through smart partnerships.
Namdia’s Chief Operations Officer, Uahoroka Kauta said revenue from diamond sales has grown to N$3.1 billion in the current financial year from N$1.9 billion in the previous financial year.
From 2016 to 2022, the company’s sales strategy was initially direct sales, then hybrid selling method meaning it sold diamonds, 60 % direct sale and 40% competitive bidding.
This strategy helped Namdia to discover prices using different methods and to ensure client commitment to the company and brand.
From 2023 to 2026, the company has opted that 100% of its diamonds will be sold via a competitive
bidding process, driven by continuous client enrollment with preference to Namibian owned companies and those that are partly owned by Namibians.
