Debswana has secured a 750 million Pula (around $109.3 million) loan facility from local financial institutions to help it sail through a cash drought brought about by the sharp decline in diamond sales, Mmegi reported.



Speaking on the sidelines of the Botswana Confederation of Commerce, Industry and Manpower (BOCCIM) Annual General Meeting in Gaborone on Wednesday, Debswana managing director, Blackie Marole said the facility is a stop-gap arrangement made available for them to access as and when they need cash, the Mmegi report said.

"This is not a normal loan agreement as per se. But we have made arrangements with different banks to lend us money whenever our requirements for cash rises and at the moment, we have not started utilizing the facility," he said. Marole explained that although this is the first time the diamond company has had to go out and look for loans from banks, they are not doing as badly as most people had been made to believe, the report said.



"Although there were virtually no diamond sales in November and December last year, demand for diamonds has begun to improve in the past few months. It is just that we are not generating enough cash to maintain our normal diamond operations and at the same time, have something else for the shareholders.



"But there is optimism that the recovery of the diamond market has begun and there are indications that diamond prices could be the firming as well and hopefully we will get back to our normal average diamond sales of around $300 million a month," said Marole. He urged the country to seek opportunities during this time of crisis and maximize on its comparative advantage. "We seriously need to look at other areas such as agriculture, tourism, provision of power in the region, coal and infrastructure development especially at this time when input costs are low," Marole was quoted saying by Mmegi.