De Beers’ Penny Discusses Turning African Resources into National Wealth

De Beers Group Managing Director Gareth Penny addressed the Council on Foreign Relations (CFR) – a leading U.S. think tank – in Washington D.C. this week, articulating the company’s role in the sustainable development of African communities.

In his address, Penny sought to emphasize a different perspective in relation to the African continent from the normal discussion on the challenges of operating there, saying, “There’s another side to the story – one we call ‘Africa working’ – where Africans are not only lifting themselves out of poverty, but collectively lifting their nations to new levels of sustainable prosperity.”

In addition, he highlighted eight points, as insights from the company, relating to how business operating in Africa could turn natural resources into shared national wealth:

• Form strong partnerships with government so that both can learn what it takes to succeed for business and for the country as a whole
• Commit to building a citizen-run organization, developing skills at the managerial level
• Help small citizen companies develop by outsourcing the supply chain
• Consider shifting skilled value-adding jobs to Africa
• Play an active role in leading the fight against HIV/AIDS and in supporting education. It’s key to business and to the communities’ long-term success
• Focus on the impact of climate change in Africa
• Support international efforts to eliminate corruption and support good governance, which will multiply the positive impact of business ten-fold
• To share wealth in a sustainable manner, it must first be created. For business, the “how” you create it can make a big difference when it comes to making it sustainable

De Beers also published its 2007 Report to Society, in which it reviews the company’s economic, ethics, employee, community and environmental performance during 2007, and highlights the sustainable development activities that De Beers is engaged in.

The report discusses the role De Beers believes the private sector can play in building a more prosperous Africa. As De Beers Chairman Nicky Oppenheimer comments, “The unique contribution that diamonds have made in countries like Botswana, South Africa and Namibia gives us cause to reflect on what lessons might be drawn from this success and whether these might be deployed elsewhere on the continent.”

Highlights from the 2007 Report include:

• Payments to partners, joint ventures and suppliers amounted to $4.9 billion
• 100 percent of De Beers’ diamonds are conflict free.
• Lost Time Injury Frequency Rate improved to 0.18 and Lost Time Injury Severity Rate improved to 22.53.
• De Beers’ social investment spend of $19 million was disbursed to more than 750 different projects. This equates to 2 percent of pre-tax profit.
• More than 185,000 hectares of owned and managed property has been set aside as nature reserves that conduct research on biodiversity.