1. How to compensate the decline of diamond revenues:
TRANSFORMATION TO KNOWLEDGE SOCIETY
BASED ON HIGH SKILLED EMPLOYMENT
Dreves – TEC
November 2009

2. ACTUAL DIAMOND / MINING CONTRIBUTION TO
NATIONAL INCOME / PRODUCTION (GDP)
Structure of GDP – 2007/08
 Mining 40%
 Government 16%
 Banks, Ins.& Business 12%
 Trade, Hotels & Restaurants 11%
 Construction 5%
 Transport 4%
 Social & Personal Services 4%
 Manufacturing 4%
 Water & Electricity 2%
 Agriculture 2%

3. DIAMOND CONTRIBUTION TO EXPORTS
Structure of Exports of Goods & Services 2008
 Diamonds 57%
 Nickel & Copper 13%
 Tourism 5%
 Textiles 5%
 Meat 2%
 Salt & Soda ash 1%
 Gold 1%
 Other Services 7%
 Other Goods 9%

4. DIAMOND CONTRIBUTION TO GOVERNMENT
BUDGET (PULA MILLION)
2006/07 2007/08 2008/09
Revenues +Grants 27397.71 28629.47 29681.32
Revenue 26949.32 28052.10 29276.23
Tax Revenue 15919.00 17266.93 18675.64
Mineral Tax 3802.78 3769.37 2972.00
Non Tax Revenue 11030.32 10785.17 10600.59
Mineral Royalties 9311.56 8564.29 7888.00
& Dividends
Grants 448.39 577.37 405.09
Expenditure + Net 19737.44 24821.86 35876.52
Lending
Surplus/Deficit 7660.27 3807.61 -6195.20

5. FROM DIAMOND REVENUES TO CORPORATE TAX
Average Annual Diamond Revenues 2006-2009:
12.000.000.000. BWP (12bn P)
Equivalent to:
1.000.000.000 EUR (1bn EUR)

6. REQUIREMENTS FROM PRIVATE SECTOR
1. Tax on Corporate surplus: max. 20%
2. If 20% = 1.000.000.000.- EUR, then:
3. Necessary profit = 5.000.000.000.- EUR
4. Return on Investment (ROI) = Capital Rentability:
min. 10% (Risk / Venture Capital)
5. Total Investments in 10 Years has to rise to:
50.000.000.000.- EUR

7. PROFIT – PRODUCTION - EMPLOYMENT
1. Return on Sales (corporate efficiency): 20%
2. Exceeded total annual private sector
production: 25.000.000.000.- EUR
3. High Labour productivity (knowledge –based):
50.- EUR/ hour x 40 hours x 4 weeks x 12 months =
100.000.- EUR p.a. and person
4. 25.000.000.000 EUR 250.000
100.000 EUR employees

8. EMPLOYABILITIES: TRAINING & EDUCATION
1.Total unemployed population 2005/2006:
248,812
Age group 15 – 34: 69% = 171,680
2. Supply of Graduates during 10 years(estimation):
100.000
3. drop out from mines and government and retirements:
?

9. CONCLUSION:
It’s Possible !

10. THANK YOU FOR YOUR ATTENTION