NAMDIA records N$144 million profit

Obrein Simasiku

Namibia Desert Diamond (NAMDIA) has bounced back from a mere profit of N$13.3 million attained in 2020/21 to a whopping ten-fold gain of N$144.7 million in 2021/22 financial after tax, and a total of N$218 million before profit. The exceptional financial returns follow poor performance as a result of Covid-19.

The company paid N$150 million in dividends to government today, which is an increase from N$40 million in the 2020/21 financial year.

“NAMDIA performed well during the 2021/2022 financial year. Profit after tax amounted to N$144.7 million, compared to N$13.3 million during the 2020/21 financial year, a period the company recorded its lowest performance since its establishment in 2016. NAMDIA is in a very sound financial position, with cash reserves amounting to N$395 million at year end. Reserves are maintained for future expansion of activities and as required collateral for banking facilities in the absence of a Government guarantee, “ CEO Alisa Amupolo said at the official handover of the dividend today..

Amupolo, said, NAMDIA has once again proven its resilience in the face of adversity of a poor performance due to Covid-19.

“Whilst many industries still battle the after effects of the COVID-19 pandemic, we were able to steadily navigate our way through the storm and deliver on our mandate. As we embark on the next 5 years and chart the future, we are looking forward to partnering with the unique and distinctive collection of industry capability that NAMDIA boasts and leveraging on the global reservoir of knowledge through smart partnerships,” said a confident Amupolo.

“Therefore, in the new phase of transformation that we are embarking on, key consideration will particularly be given to; expanding horizon in fulfilling mandate of price discovery, modifying and differentiating demand for Namibian diamonds and engaging the global and domestic market to strengthen market share. We will harness every opportunity, strengthen existing bonds, cement new alliances and foster new partnerships which will enable us to compete in the global and domestic market, to increase market share and create value for all Namibians.”

Amupolo added that, NAMDIA’s price discovery mandate is not only rough diamond specific but also on its maiden smart partnerships with one of the sight holders has heralded Eumbo Star which creates meaningful synergies and maximizes the value of this exceptional stone.

“We are confident that this is the first of many future collaborations as we catapult our model towards value addition through distribution channel partnerships.

Through these agreements, NAMDIA will establish its global brand identity and bring us ever closer to discovering the true value of Namibia’s diamonds in the global diamond value chain,” she stressed.

“Namibia’s natural resource sovereignty has ensured the fruits of our nation’s natural wealth and its positive off spins directly and indirectly benefit our fellow Namibians. Through institutions such as NAMDIA, the Ministry of Finance, is provided with the means to implement and carry out national objectives and bolster our nation’s economic and social aspirations. On behalf of the Shareholder, the Government of the Republic, the Ministry of Finance contentedly accept the dividend handover of 150 million Namibian Dollars, the highest figure we have received from NAMDIA to date and proof that the institution remains on an upward trajectory and setting a sterling example for other commercial public enterprises,” said finance deputy minister of finance Maureen Hinda-Mbuende.

The income streams were from the 10 sales conducted in 2021/2022 financial year, improving its recovery by 7% above the 100 percent SSV during the period.

“NAMDIA purchase volumes totalled 222,978 carats, an increase of 53.8 percent compared to the previous year. Sales revenue increased by 78.7 percent to US$128 million. Whereas the buying average carat price was US$536.55 compared to the selling average carat price of US$574.21. 36 New Clients have been elected for 2022/2023 and 2025/2026,” Amupolo stated.

NAMDIA managed to purchase its 15% entitlement from Namibia Diamond Trading Company (NDTC) using a revolving overdraft facility which settles upon the sale of goods. The US Dollar banking facility with RMB Namibia which was renewed in December 2021 at US$27 million and secured by collateral of a 12-month Fixed Deposit placed with RMB for N$145 million, is another accomplishment.

Related Posts