The Tribune

By NEIL HARTNELL

Tribune Business Editor

nhartnell@tribunemedia.net

Grand Bahama’s Chamber of Commerce president yesterday said he was unsure what economic benefits will flow from the diamond repository proposal that the Prime Minister discussed with Botswana.

James Carey told Tribune Business he had been unable to discover any details on a facility which the Prime Minister’s Office said was “explored” by Philip Davis KC and his ministerial delegation during their five-day state visit to the African nation his week.

“Moreover, the establishment of a diamond depository in Grand Bahama was explored as a strategic initiative to facilitate Botswana’s diamond exports to the US. This collaboration involves the Grand Bahama Port Authority and the Freeport Container Port, aiming to enhance trade links and foster economic co-operation,” the Prime Minister’s Office said.

Several sources suggested such a facility should be described as a repository, not a depository. It would seemingly act as a secure storage facility for diamonds in transit from Botswana to the US, with the gems held in it until they were required for onward transportation. Botswana is one of the world’s largest sustainable diamond sources, and the country is the world’s leading producer by value.

“I saw that and I’ve been trying to find out a bit of information on what they may be talking about,” Mr Carey told this newspaper of the statement by the Prime Minister’s Office. “Diamonds are not bulky items, so they won’t be shipping container loads of the stuff. I don’t know what it brings to Freeport but there will be some payroll on the ground.

“I’ve not been able to find out anything. The positive thing is if it brings jobs they will be high-end jobs and some security staff. Any type of that thing bodes well for Freeport. From a business standpoint I can’t see any impact apart from payroll, utilisation of space and security. If it does come through there will obviously be some high-end employees involved. How many, I can’t begin to guess.”

Freeport’s bonded status as a free-trade zone, under the Hawksbill Creek Agreement, makes it the best location in The Bahamas to store high-value objects such as diamonds in a secure facility because they can be held tax-free. The city’s transhipment, logistics and distribution infrastructure can then be used to facilitate their onward dispatch to the US.

Tribune Business sources, speaking on condition of anonymity, yesterday said they recalled previous discussions about establishing a repository for precious valuables, such as gold and silver, in Freeport several years ago. One said he remembered the former Associated Grocers warehouse, located at the Sea/Air Business Centre, being talked of as a possible location.

“There was some talk a while back about their being a repository in place to store valuables,” the source said. “The way the law is set up you can ship pallets of gold anywhere. If there was a repository in The Bahamas, it would not fall under the banking laws.

“There was some talk about that a couple of years ago; two years ago. I know they were kicking around for a building to use, and the Associated Grocers building came up at one point. That’s an interesting concept. They’d have to licence it here. What they were looking at back then I think was gold, silver, precious artworks, antique vehicles and high-value consumer electronics.”

The Prime Minister’s Office, in its statement on Mr Davis’ meeting with Botswana’s president Masisi, said: “On the table for both countries is an economic co-operation of a proposed MOU (memorandum of understanding) between the Central Bank of the Bahamas and the Bank of Botswana.

“This partnership will facilitate the exchange of expertise and technology in the area of Central Bank Digital Currency (CBDC), leveraging The Bahamas’ Sand Dollar and Botswana’s SmartBots initiatives to spur advancements in the digital economy.

“The meeting also set the stage for partnerships between financial institutions of both nations, aimed at unlocking investment opportunities and diversifying financial services. Plans for joint conferences to explore collaborative financial solutions were discussed, promising to strengthen economic ties further.

“In a move towards enhancing digital economy co-operation, the two countries agreed to collaborate on developing a regulatory framework for digital assets. Drawing from The Bahamas’ experience with the DARE (Digital Assets and Registered Exchanges) Act 2023, this initiative aims to bolster Botswana’s digital economy strategies and secure robust investment avenues.”