Newly established diamond manufacturing firm, KGK Diamonds, this week celebrated a milestone as its first production line of jewellery was exported to the United States.The sales were made under the African Growth and Opportunities Act (AGOA), the preferential deal between the US and many African states, whose renewal is currently being renegotiated ahead of its expiry in 2025.

KGK’s exports under AGOA mark a rare utilisation of the trade deal by a local company, as Botswana exports to the US have whittled down to zero in recent years, following the collapse of the US-facing textile sector.

The US is the world’s foremost consumer of diamond jewellery, accounting for an estimated 55% in 2022.

While KGK Diamonds has been operating in Botswana since 2015, its activities were limited to cutting and polishing. Only recently has the company expanded its operations to jewellery manufacturing, a sector in line with government’s strategy for greater value addition in the minerals sector. KGK Business Development Manager, Siddarth Gothi said the recent milestone is a strategic bid to capture the international market and also represents the group’s desire to set Botswana on the global map by moving the country up the ladder of value chain development in the diamond industry.

“The United States controls close to $70 billion of the diamond jewellery market and capturing this will give the company a chance to continue investing more in Botswana as it captures more of the consumers,” he said.

Gothi further said while KGK Diamonds is utilising AGOA to target the US the group is also exporting into the sub-Saharan market, through the African Continental Free Trade Area greement which Botswana recently ratified. He said KGK’s core objective as it captures new markets is to help Botswana overcome the pressing challenge of unemployment.

The group’s state of the art facility in Gaborone has the capacity to employ 50 people, but currently has 34 workers. Plans are underway to further scale up employment.

“We aim to create over 500 jobs as we scale up in this facility and we will continue to empower Batswana through skills development and knowledge transfer,” said Gothi.

Earlier this year, the Special Economic Zones Authority (SEZA) licensed KGK’s manufacturing plant as a Single Factory Zone, reserving all its production for the international markets, especially the US. The licensed plant has since been manufacturing jewellery made out of nine carat and 18 carat silver studded with diamonds.

SEZA Director of Investor Facilitation and Relations, Neo Mahube said KGK is a success story that the parastatal is proud to have handheld. She said it is expected the company will continue to grow as it studies other opportunities availed by AGOA.

“KGK is a stunning example of how mineral beneficiation will create more jobs in Botswana and as SEZA we are proud and we will continue aiding KGK to reach more milestones,” Mahube said.