Namib Desert Diamonds (NAMDIA) says it is strategically expanding its horizons to the Far East markets, with a keen focus on Vietnam and Hong Kong.
The move comes as NAMDIA anticipates a notable surge in its revenue projections.
NAMDIA Chief Executive Officer Alisa Amupolo revealed the company’s strategic move, citing the growing potential of the emerging markets amidst increased demand for diamonds.
“We’re considering expanding our horizons, especially with the volatility in the Chinese market due to the housing crisis. We see opportunities emerging in the Far East, particularly in strategic markets like Vietnam and Hong Kong,” she said.
However, she added that traditional markets like India, Dubai, and Antwerp remain a primary focus and hold significant potential.
“With the emergence of the new middle class and other economies on the rise, the markets once considered frontier, such as the US and China, have shifted. Now, we see the emergence of periphery markets where growing disposable incomes present opportunities for us to capitalise,” she said.
Amupolo addressed concerns about the impact of decreasing diamond prices on revenue projections, acknowledging the market’s unpredictability.
On clientele, she noted that the majority of NAMDIA’s diamond inventory—80%—comprises series goods, ranging from five to ten carats down to dust, and another 20% consists of fancy and special diamonds, sought after by ultra-high-net-worth individuals.
The CEO expressed optimism regarding the gradual normalisation of diamond prices, citing improvements observed in the industry during the recent cycle.
“Even though we’re coming from a gloomy year where the market was very volatile, we have recorded some reasonably acceptable top line,” she said.
Regarding the negotiation with the government regarding purchase entitlement, Amupolo stated, “we believe now that we are a royal oil machine, we’re able to handle more,” reflecting NAMDIA’s optimism about handling a larger share of the purchase entitlement, which currently stands at 15%.
NAMDIA is entitled to buy a 15% share of Namibia Diamond Trading Company’s diamonds every month.
NAMDIA generated total revenue of N$3.1 billion for the 2022/23 financial year, the highest in its six years of existence, including an all-high dividend declaration of N$300 million to the government.
The revenue represented a 63% increase from N$1.9 billion generated in the 2021/22 financial year. The diamond marketing company netted a gross profit of N$628 million during the period and a profit after tax of N$409 million.
