NAMDIA, the Namib Desert Diamonds (Proprietary) Limited Company, a 100% commercial public enterprise marked a historic occasion at the launch of its Annual Report for the financial year 2022/2023 last week, declaring a record-breaking dividend of N$300 million to NAMDIA’s shareholder, the Government of the Republic of Namibia.
This declaration came at the backdrop of a stellar financial performance which saw revenue for the 2022/2023 financial year amounting to N$3.1 billion, an increase of 63 percent compared to the N$1.9 billion achieved in the previous year.
Beyond this, NAMDIA recorded a gross profit of N$628 million (2021/2022: N$284 million), resulting in a profit before tax of N$612 million (2021/2022: N$218 million) and a profit after tax of N$409 million (2021/2022: N$144 million).
This extraordinary performance sets a new benchmark in NAMDIA’s history, accentuating the company’s dedication to enhancing the nation’s economic well-being.
Speaking about the company’s strategic performance, the CEO of NAMDIA, Alisa Amupolo, illuminated key performance indicators and provided an overview of NAMDIA’s strategic objectives as it continues to execute its 5-year strategic plan incepted in 2022/2023.
She highlighted that the 2022/2023 financial year saw NAMDIA’s strongest performance since inception. NAMDIA’s hybrid selling method, which includes direct sales and competitive bidding, enabled the realization of a diversified our business model and led to exceptional results coupled with increased production and favorable market conditions.
Essentially, NAMDIA’s exceptional performance can be attributed to an increased purchase entitlement, the diversification of NAMDIA sales channels and the strong performance of the diamond industry during the first half of 2022.
Sales performance NAMDIA’s purchase entitlement increased by 24.9 percent to 278,609 carats, mostly due to the increased production of Namibian diamonds after the inauguration of the diamond recovery vessel Benguela Gem in March 2022.
NAMDIA held nine sales during the reporting period. The average buying price was US$581 per carat and the average selling price US$669 per carat, translating to margins of 15.2 percent above Standard Selling Value (SSV), the company’s highest since its establishment.
Further to this, NAMDIA held its first competitive bidding sale in February 2022. The new hybrid selling method is made up of 60 percent direct sales and 40 percent competitive bidding and serves to optimise and obtain the best sales value for Namibian diamonds.
“The Board is pleased to report that NAMDIA is making significant progress towards achieving its strategic goals as outlined in the Integrated Strategic Business Plan 2022 – 2026. Our hybrid selling method, which includes direct sales and competitive bidding, has helped NAMDIA diversify its business model and has led to exceptional results, as highlighted in the financial report,” Bryan Eiseb, the Chairperson of the NAMDIA Board of Directors said.
In March 2022, NAMDIA increased its client base from sixteen clients to thirty-six clients according to the selection process outlined in NAMDIA’s Client Selection Policy. To allow NAMDIA to share in the proceeds from the sale of polished diamonds, a Joint Venture agreement with NAMDIA client Samir Gems was signed. The once-off agreement opened a door into the downstream market, and going forward, similar opportunities will be explored in pursuit of NAMDIA’s price discovery mandate.
NAMDIA’s public relations strategy focused on building strong relationships with the media and implementing policies to effectively convey corporate messaging and manage its reputation in the face of evolving challenges.
“Comprehensive measurement and evaluation strategies were implemented to assess the effectiveness of NAMDIA’s PR efforts and identify areas for improvement. PR highlights included the announcement of the company’s new client list, the declaration of a dividend of N$150 million, visits from government officials, including Dr. Hage G. Geingob, and the Governor of the Bank of Namibia, and NAMDIA’s first exhibition outside the country at the JGW in Singapore.
“The Safety and Security team ensured the comprehensive protection of NAMDIA employees, clients and other key stakeholders, and played a critical role in safeguarding all aspects of NAMDIA’s operations, including the import, sorting, client viewing, sale and export of diamonds. No incidents or loss of diamonds were recorded during the year, thereby maintaining NAMDIA’s impressive record of zero incidents and zero loss of diamonds since inception,” NAMDIA said.
During her acceptance speech of the dividend on behalf of the Government of the Republic of Namibia, Deputy Minister of Finance and Public Enterprises, Maureen Hinda-Mbuende praised NAMDIA’s dedication to contributing to the economic well-being of Namibia.
“This substantial contribution will undoubtedly support the Government’s efforts in various sectors, ultimately benefitting our people and advancing our nation’s development goals,” she added.