While figures released yesterday by the Bank of Botswana (BoB) indicated that July's rough exports were marginally lower than the P3.9 billion recorded for June, they were still the third highest of the year.

The latest figures also underscore the statistical gap between the central bank and Statistics Botswana's reporting of diamond trade figures. For June, the data agency reported total diamond exports softer by 62% at P2.4 billion, while the BoB had exports up 78% to P3.9 billion. Statistics Botswana declared a preliminary P2.4 billion trade deficit based on its estimation of weaker diamond exports. The figures are due to be revised within a month.

"Botswana exports refer to the value of rough diamonds mined in Botswana," the BoB explained in a footnote to the latest figures.

"This is recorded at the time they are sold, which may be some time before they leave the country. "Total exports are as reported in the trade statistics compiled by Statistics Botswana and also include re-exports of diamonds mined in other countries. These are recorded at the time the goods leave the country." The gap between the two bodies has widened as statisticians have battled to incorporate the establishment of diamond aggregation activities, which have seen billions in rough stones imported from De Beers' mines worldwide and re-exported since last July. Statistics Botswana has since opted to report total diamond imports and exports without distinguishing between those from Botswana and those attributable to other countries. The Bank of Botswana, meanwhile, distinguishes between locally produced rough diamonds and other sources, although the latter suffer time lags of about two months.

"The intention was to record this trade only when those (incoming rough) diamonds were bought by Botswana diamonds polishing companies," Statistics Botswana said in a previous statement."However, it became difficult to keep track of these diamonds and they ended up being captured as exports when they were leaving the country while they were never captured as imports when they originally entered the country."

As a result of this anomaly, Statistics Botswana declared trade surpluses totalling P4.5 billion between August and October last year before revising these down to a total deficit of P538.7 million.Meanwhile, the BoB's data also shows that local mines produced rough diamonds with an export value of P15.1 billion between January and June.The figure compares favourably with the half year 2012 exports of P12.4 billion and full year exports of P23.2 billion.

Global industry analysts have attributed the better rough diamond sales this year to market fundamentals supporting demand over supply as well as improved consumer outlooks in key markets such as the United States, parts of Europe and China.

A key concern for producers, analysts say, is the continuing fall of the Indian rupee and generally weaker economic conditions in that country, which are expected to curtail demand for the precious stones.While India is already a key market for rough and polished diamonds, it is expected to play an even bigger role in the future together with China.