OPIC investments in Botswana diamond manufacturing
Overseas Private Investment Corporation (OPIC) President and Chief Executive Officer Ray W. Washburne visited Botswana, where he met with local banks to discuss investment opportunities to advance development in the country, and visited OPIC-supported projects.
Among the projects Washburne visited was an OPIC-supported diamond cutting and polishing facility that has promoted local job creation and diversified economic growth by bringing more value-added parts of the diamond industry into the country. Historically, diamonds mined in Botswana and elsewhere were sorted, marketed and manufactured in other countries.
Three financial institutions have agreed to guarantee a $125 million loan to Botswana’s diamond-manufacturing industry to strengthen the nation’s economic growth. The US government’s Overseas Private Investment Corporation (OPIC) has partnered with Botswana Finance, a subsidiary of diamond-manufacturing company Lazare Kaplan International (LKI) and Stanbic Bank to provide the loan.
It’s the second portion of a $250 million OPIC loan guarantee that will establish a revolving facility in which OPIC will share the credit risk, the organizations said recently. Barclays Bank of Botswana provided the first installment in 2016.
“This project is a great example of building a strong value chain that will help a key African industry more fully participate in the global economy,” said Washburne. “Africa needs more investment to continue to build strong value chains.”
As part of his National Security Strategy, President Trump highlighted the need for a modernized approach by the U.S. government to development finance to help grow aspiring partners, promote economic relationships, and increase investment in regions important to American interests.
