During a presentation on Tuesday to government officials, including the minerals and energy minister, bankers, local businessmen and officials from neighbouring countries, Safdico CEO Brian Gutkin, the founder of the project, said the Diamond Technology Park was designed to house diamond-cutting facilities and service companies such as information technology consultants, couriers and restaurants.

Safdico, a South African company with offices around the world, and Steinmetz, which is part of the Geneva-based Steinmetz Group, will each build high-value manufacturing facilities in the first phase of the development, which is expected to start in August.

The $50m investment in the massive complex echoes a similar trend of overseas diamond companies moving into SA in the early nineties.

To Gutkin, who played a key role in pulling together the South African diamond industry with the creation of a diamond centre in Johannesburg, expansion is the key to the move into Botswana. “Botswana provides an opportunity to increase capacity for diamond polishing in both expertise and supply,” he said.

While SA’s diamond industry received a major boost in the early nineties from overseas investors such as Steinmetz, which, attracted by the financial rand, poured money into the country by developing diamond-cutting factories that today rank among the largest diamond operations in the country, such investment is now happening in Botswana.

For decades the Botswana government has quietly been beating the drum to see more value brought to its diamonds, which are its primary source of income.

It changed its soft tone during negotiations with De Beers for the renewal of the Jwaneng mining licence last year, demanding that De Beers provide manufacturing and employment opportunities and tying De Beers to penalties

Now the government, which is by far the largest diamond producer in the world, with the most profitable mines, is turning its attention to commercial initiatives such as the park.

“They came to us on their feet and showed us they are serious,” said a government official during the launch in the capital, Gaborone.

Government support for the park will be crucial, although Safdico said it had already received interest from banks and local businesses.

Steinmetz, which is also looking at expansion in Botswana for Bateman, its engineering company, said it would cut premium diamonds.

Training of local diamond cutters will start within the next two months at its factories in SA and Namibia.

Safdico and Steinmetz also hope to create additional jobs beyond their cutting factories by providing a services pool, in line with the government’s expectations of creating jobs.

The largest diamond-cutting operation in the country, owned by Diarough, a De Beers sight-holder company that came to Botswana in 1981, employs about 300 people.

De Beers MD Gareth Penny, speaking at the launch, said: “We support and endorse these downstream activities.”