Financial Groups Pledge $125M to Botswana Trade

RAPAPORT... Three financial institutions have agreed to guarantee a $125million loan to Botswana's diamond-manufacturing industry to strengthen thenation's economic growth.The US government's Overseas PrivateInvestment Corporation (OPIC) has partnered with Botswana Finance - a subsidiary of diamond-manufacturingcompany Lazare Kaplan International (LKI)  - and Stanbic Bank to provide the loan. It's thesecond portion of a $250 million OPIC loan guarantee that will establish arevolving facility in which OPIC will share the credit risk, the organizations saidrecently. Barclays Bank of Botswana provided the first installment in 2016. The trio's objective is to help diversify Botswana'seconomy, drive the development of the local financial sector, and give localcompanies access to financing. "With the support of OPIC financing, this project will keepthe value-adding process of the diamond-supply chain in Botswana, promotinglocal job creation, diversifying economic growth and bringing global tradeopportunities," said OPIC CEO Ray Washburne. "The project will have a significantimpact in local communities and further the country's economic development." The guarantee will also have positive effects outside thediamond industry, including on the electricity, finance and business sectors,Stanbic CEO Samuel Minta added. In July, OPIC launched its Connect Africa initiative, whichseeks to invest $1 billion in projects throughout several sectors over the nextthree years. Image: Representatives of the three organizations sign the agreement. (Michael Priest Photography)