RAPAPORT… Moody’s Investor Service expects Botswana to remain in deficit in the short to medium term, based on the slow pace of the diamond industry’s recovery. The rating agency downgraded its outlook on the country’s A2 government bond ratings from stable to negative, explaining that the financial downturn also had a profound effect on Botswana’s economy. Kristin Lindow, Moody’s senior vice president and regional credit officer for Africa, said that Botswana’s fiscal deficit will be particularly large again next year — and possibly beyond next year — due to the cost of completing its capital expenditure projects, which are designed to promote economic diversification and the expansion of the private sector.
Gemfields Discovers 6,225-Carat Emerald
Gemfields, a miner of colored gemstones, reported that it found a 6,225-carat rough emerald at its Kagem mine in Zambia. The stone has been named “Insofu,” which means “elephant” in the local vernacular, based on its size and in honor of the World Land Trust’s (WLT) “Elephant Corridor Project” that Gemfields is participating in. Insofu is currently being assessed by Gemfields’ experts.
Debswana Names Penny New Board Chairman
Debswana, the joint diamond-mining venture held by De Beers and Botswana, named Gareth Penny its new chairman of the board. Penny, who serves as the managing director of De Beers, took over the role from Eric Molale, the permanent secretary to Botswana’s president. Molale will serve as Debswana’s new deputy chairman
CIBJO Concludes Congress, Adopts New Initiatives
CIBJO, the World Jewellery Confederation, held its annual Congress from February 20 to February 22, 2010 at the International Congress Centre Munich (ICM) in Germany, where 135 delegates from jewelry, gemstone and precious metal associations considered and debated a range of international issues.
Among the highlights of the 2010 CIBJO Congress were the CIBJO Diamond Commission’s decision to increase the number of acceptable terms used to describe synthetic diamonds, the CIBJO Gemmology Commission’s release of the Gemmology Laboratory Blue Book, the CIBJO Coloured Stone Commission’s approval of a set of industry codes describing gem treatments, the CIBJO Precious Stones Commission’s publication of a new appendix to the Precious Metals Blue Book and the CIBJO Marketing & Education Commission’s release of a diamond, colored gemstone, pearl and precious metal guide for jewelry consumers.
The 2010 CIBJO Congress was hosted by the Messe München and the Inhorgenta Europe 2010 trade show.
India Jewelry Show Ends on Upbeat Note
The IIJS Signature show, held from February 19 to February 21, 2010 in Goa, India, proved to be a positive one for exhibitors, despite a reduced number of visitors and exhibitors. This year’s show hosted 68 exhibitors and an estimated 350 visitors, including seven foreign delegations from Armenia, Bangladesh, Iran, Russia, Uzbekistan, Poland and Azerbaijan. While some expressed disappointment regarding the comparatively low international turnout, most traders viewed the event as an opportunity to further penetrate the growing Indian market, which they dubbed “recession-proof,” according to Rapaport News.
The 2010 event marked the first time that loose diamonds were displayed as a separate product category, although very few companies participated in the show’s Diamond Pavilion. The sales team from Venus Jewel reported that they were able to meet some new clients at the show, but added that they would like the organizers to raise the Diamond Pavilion’s profile.
According to the All India Gems & Jewellery Trade Federation (GJF), an umbrella body for the local jewelry industry, the country’s domestic market for jewelry was valued at about $30 billion in fiscal 2008 to 2009, with diamond jewelry accounting for approximately 20 percent of the total.
