Saturday, June 15, 2024

China asks Botswana to increase diamond exports

Chinese investors have called on Botswana to have a clear and transparent level of engagement and identify key areas in which they want to do business with China.

During a recent mining conference in Gaborone, Bateman Beijing Axis General Manager Nitesh Dullabh said China is interested in investing in Botswana.

China has experienced increased demand for lead, copper and other commodities, fuelled by the gradual upswing in the global economy and the potential demand for increased consumer goods.
“There is a potential for Chinese companies to invest in the mining of copper, uranium, diamonds, coal, lead and zinc,” said Dullabh.

Botswana, the world largest producer of rough diamonds, is also in a better position to trade with China because of an increase in diamond consumption in the country.

Currently the consumption level stands at 6.7 percent and estimates project that it will have increased to 18- 20 percent by 2015.

“China is comfortable with investing in Botswana as the country has an attractive fiscal policy that creates a favorable environment for investors,” Dullabh later told Sunday Standard.
China is one of the world largest consumers of copper, coal, nickel and zinc.
Dullabh also advised Botswana to built investment relationship with China and increase their diamond export to China from a mere 10 percent.

“Investment with China is worthwhile as China’s GDP growth rate has been resilient, notwithstanding the drastic impact of the global economic crisis, with its 2010 GDP being forecast at 10 percent” he said.

The Chinese economy has in the past ten years recorded a dramatic economic growth .With a fourfold increase since 1998, China‘s economy is set to become the second largest economy in the world.
“There will be a constant need and demand for resources in China. Botswana should capitalise on that and become a major supplier thereby creating a competitive edge“, said Dullabh.

With China’s appetite for commodities, said Dullabh, Botswana can enjoy the competitive advantage of increased FDI inflow, infrastructure development and upgrading of existing facilities, exchange of technology and skills transfer.

He encouraged Botswana to develop good marketing strategies that will enable her to benefit from China’s economic position. “There is need for Chinese companies to partner with local companies on exploration and processing,” he said.


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