De Beers' Penny calls for new view on Africa

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De Beers' Penny calls for new view on Africa

July 02, 2008

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Antwerp, Belgium—Diamantaires need to get behind the concept of a more prosperous Africa—one in which its people are working to lift themselves out of poverty, De Beers Managing Director Gareth Penny said in a speech at the World Diamond Council (WDC) dinner gala, held at the closing of the organization's sixth annual meeting.

"We should not underestimate the role our industry can play in achieving this," Penny told gala attendees. "To begin with, however, we must establish a positive approach and not subscribe to the view that Africa is a lost cause. For example, the typical perception, here in the West, is that all Africans are either victims or villains. We do not believe this to be the case."

More than 100 delegates to the WDC gathered in Antwerp, Belgium, for the meeting, which was hosted by the Antwerp World Diamond Centre. The main thrust of the meeting was to ensure the industry continues its campaign to eradicate the trade in conflict diamonds and to celebrate the fifth anniversary of the Kimberley Process Certification Scheme, an international agreement that WDC members say has effectively done so.

In his report to the plenary session, WDC Chairman Eli Izhakoff said the trade in conflict diamonds has ceased almost entirely, but that the industry needs to continue its efforts.

"The truth of the matter is that the Kimberley Process Certification Scheme has been so successful in monitoring the flow of rough diamonds into the pipeline that we concern ourselves today with essentially a limited number of instances of uncertified goods coming into the market, even though the diamonds in question rarely are sourced from an area experiencing any form of civil conflict," he said. "Our reason for behaving in this manner is clear. The system will work effectively only if all diamonds are traced, and not only those which are deemed to originate from a conflict zone."

After congratulating the WDC attendees on those efforts, Penny pointed out that it is the diamond industry, members of the private sector, who can have the greatest impact in helping Africa achieve greater prosperity. The transformation is already underway, he said.

"In 2007, African continental economic growth averaged nearly 6 percent, with the best performers closer to 7 percent," he said. "Compare that with the dismal economic performance in Africa in the '80s and '90s, when growth rarely exceeded 2 percent."

He also pointed out some stabilizing strides made in African nations, such as the first presidential elections in the Democratic Republic of Congo (with Angola appearing set to follow suit), Sierra Leone's recent round of peaceful, democratic elections and Liberia's recent election of Africa's first female head of state.

"Greater transparency in the way diamonds are traded in Africa and the subsequent increase in government revenues are part of this increase in economic growth and improving governance," Penny said. "Our collective experience, gained largely through our involvement in the Kimberley Process, has taught us much. Above all, it has taught us that we all have a responsibility to ensure that we are not only aware of where our diamonds come from, but also to ensure, where we can, that the communities from where they came have a peaceful and stable existence, and experience lasting social and economic benefit from them—just as we would expect for ourselves."

For companies getting involved in doing business in Africa, he recommended a series of steps such as forming strong partnerships with the government, committing to building a citizen-run organization, developing skills at the managerial level and helping small citizen companies develop by outsourcing the supply chain to them.

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