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The Untapped Potential: Addressing Namibia’s High Percentage Of Unprocessed Gemstone Exports

By: Justicia Shipena

Trade Minister Lucia Ipumbu has expressed sadness over the fact that more than 90% of gemstones leave the country in their unprocessed form, depriving the nation of the economic benefits that could derive from value addition.

Ipumbu made the remarks when officiating the graduation ceremony of the gemstones students for the year 2021 and 2022 in Windhoek this week.

A total of 44 young Namibians of which 25 were women graduated.

The graduation ceremony was put together to recognise the students’ accomplishments and achievements in the gemstone cutting and polishing course, which is offered every year for six months at the Ministry’s Karibib Gemstones Centre in the Erongo region.

“Sadly, more than 90% of the gemstones leave the country in a rough form which means loss of jobs and revenue for the local economy,” Ipumbu said.

She stated that data shows the Namibian economy is mostly dependent on the mining sector.

She explained the training was implemented due to the variety of semi-precious stones created by small-scale miners who dig and sell them to local consumers and visitors.

The Minister pointed out that small-scale mining, as a sub-sector of the mining sector, offers a living for many individuals and their families, reducing poverty and improving lives.

“In addition, small scale mining activities provide numerous job opportunities to various rural communities in Namibia especially in regions endowed with gemstones,” she said.

Ipumbu further said the initiative was established to teach Namibians how to cut and polish gemstones, adding that 142 people were trained, with 138 graduates completing the training programme satisfactorily.

The training centre has assisted in the placement of at least 95% of trainees in the diamond sectors, “where they further their skills and at the same time earning as qualified employees,” Ipumbu said.

“These ideals of value addition and skills training for the diamond, gemstones and associated value chains are further embellished in the collaborative strategy that was released by our Ministry and the Ministry of Mines and Energy released in 2021.”

The Minister hopes that the graduates would use their newly acquired skills to contribute more to Namibia’s jewellery industry, coloured gemstones, and linked value chains’ sector growth strategy.

“Therefore, it is only through this kind of interventions that we can transform the structure of the Namibian economy when we prioritise the most productive and efficient economic activities and local industries, as it provides a well improved market access at home and abroad.”

Ipumbu also stressed that creating a large number of graduates from this course is an important component of the war on poverty and a further step on Namibia’s path to become a highly competitive and industrialised nation in gemstone cutting and polishing with a long-term economic growth strategy.

Meanwhile, the Executive Director Sikongo Haihambo stated the Trade Ministry is eager to learn how the graduates are faring in the labour market.

According to Haihambo, the focus should be on ensuring a viable diamond and gemstone cutting and polishing business in Namibia that is competitive, value-adding, and sustainable in terms of income and job creation.

“Your tasks, graduates, are therefore much bigger than excelling in your careers.”

Justicia Shipena

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