Namib Desert Diamonds spent over 11 million Namibian dollars on consultants last year
In existence for less than two years, the Namibian public sector entity Namib Desert Diamonds (Namdia) has already recorded a substantial amount of advisory assistance expenditure, as evidenced by its reports for fiscal year 2017. The company has spent more N $ 11 million in consultants alone, which represents almost half of its total expenditure since its inception.
Born out of a sales and marketing agreement between the Government of Namibia and the De Beers group of companies, Namdia was established in 2016 with the main objective of providing a price discovery mechanism for the government. To this end, the company markets rough diamonds to create a trading space for Namibian diamonds in the global market.
Much like most countries in Africa, mining forms an important part of the Namibian economy and the country’s diamond reserves ensure that the segment remains lucrative. Nonetheless, the past half-decade has been a turbulent one for the mining industries, with global prices for precious and other raw materials falling in 2014 and then fluctuating.In addition, cutting-edge technological applications have now made their way into the mining sector, which the biggest industrial players will adopt sooner rather than later, putting the rest of the mining sector under significant pressure. As a modern organization revolving around the mining sector, Namdia is able to keep pace with these developments and keep abreast of developments in the industry.
Big four professional services company Deloitte, for example, developed the concept of a digital mine for the contemporary era, which features digital geological detection and identification of mineral deposits, autonomous mining equipment. , real-time data capture and return, and a number of other features.
In order to take advantage of these latest applications, while simultaneously implementing a complex business strategy, Namdia required extensive consulting support. Less than a year after its inception (fiscal year 2017), the entity recorded total expenditure of just over N $ 23 million, of which over N $ 11 million was spent on employment of services of advice.
The amount spent on consulting firm fees is significantly higher than funds deployed elsewhere, such as directors’ fees which amounted to N $ 4 million, total overseas travel costs of N $ 2 million. Namibian dollars and 3.8 million Namibian dollars spent on salaries for the entire period. The company’s overall profits crossed N $ 62 million, while N $ 29.5 million was paid in taxes.