SIGNING CEREMONY OF THE MEMORANDUM OF UNDERSTANDING

Venue: Central Bank Board Room

Date: 11th February, 2013.

             GOVERNOR OF THE CENTRAL BANK,

             CBS MANAGEMENT,

             THE PRINCIPAL SECRETARY – MNRE,

             GOVERNMENT OFFICIALS

             REPRESENTATIVES FROM ALL THE MEDIA HOUSES,

             ESTEEMED INVITED GUESTS,

             DISTINGUISHED LADIES AND GENTLEMEN;

I WISH TO GRACIOUSLY SHOWER YOU WITH PRECIOUS GREETINGS THIS AFTERNOON.

I FEEL GREATLY HONOURED TO BE PART OF THIS AUSPICIOUS FUNCTION AS A REPRESENTATIVE OF THE GOVERNMENT OF THE KINGDOM OF SWAZILAND TO BE PARTY TO THE SIGNING OF A MEMORANDUM OF UNDERSTANDING ON THE STORAGE FOR PRECIOUS MINERALS WITH THE CENTRAL BANK OF THE KINGDOM SWAZILAND.

MR. GOVERNOR, PRECIOUS MINERALS IN PARTICULAR DIAMONDS ARE INCREASINGLY A SUBJECT OF INTERNATIONAL LAW, ENCOMPASSING A WIDE RANGE OF PROTOCOLS AND RECOMMENDATIONS RELATING TO SOCIAL AND ECONOMIC NORMS. THE INTERNATIONAL LAWS DO NOT SUPERSEDE THE DOMESTIC LAWS BUT RELY MORE ON POLITICAL WILL AND GOVERNMENT’S COOPERATION.

IN THE YEAR 1999, SWAZILAND PARTICIPATED IN A CONCEPTUALIZATION OF A FORUM TO REGULATE AND GOVERN THE TRADE OF ROUGH DIAMONDS; TODAY CALLED THE KIMBERLEY PROCESS. THE KIMBERLEY PROCESS CALLS FOR MEMBER STATES TO CREATE A MECHANISM THAT PREVENT TRADE IN CONFLICT DIAMONDS BY THE USE OF AN IMPORT/EXPORT CERTIFICATION SYSTEM. IN MAY 2011, SWAZILAND WAS INDEED ADMITTED TO BE A MEMBER OF THE KIMBERLEY PROCESS.

IN 2011, INGWENYAMA ASSENTED TO THE DIAMOND ACT, WHOLE PRIMARY OBJECTIVE IS TO GOVERN AND REGULATE DIAMONDS AND THE DIAMOND INDUSTRY IN SWAZILAND. SWAZILAND IS THUS BOUND BY THE PROVISIONS OF THIS ACT AND THE KIMBERLEY PROCESS IN AS FAR AS THE STORAGE OF DIAMONDS IS CONCERNED.

THE MINISTRY IDENTIFIED THE CENTRAL BANK OF SWAZILAND AS A PARTNER IN THE STORAGE OF THIS PRECIOUS MINERAL RESOURCE. THE MINISTRY REQUESTED YOUR ASSISTANCE AND I HAVE COME TO APPEND MY SIGNATURE ON BEHALF OF GOVERNMENT AND CONFIRM TODAY BY THIS MOU THAT THE CENTRAL BANK OF SWAZILAND SHALL PROVIDE STORAGE FOR DIAMONDS AND OTHER PRECIOUS MINERALS THAT ORIGINATE WITHIN THE MINES IN THE KINGDOM OF SWAZILAND.

MR GOVERNOR, MANY CENTRAL BANKS ACQUIRE DIAMONDS AND GOLD BULLION IN ORDER TO BUILD A STOCK FOR THE STATE. THESE CENTRAL BANKS BUY THE DIAMONDS AND GOLD AT MARKET RELATED PRICES SO THAT THEY CAN REAP THE BENEFITS OF HIGH PRICES IN TIMES OF HIGH DEMAND OF THESE PRECIOUS MINERALS. THE PRICES OF PRECIOUS MINERALS VARIES OVER A PERIOD OF TIME. THIS VISION OF THESE CENTRAL BANKS IS TO ADD VALUE AND CREATE A WEALTH FROM THE DEPOSITS OF DIAMONDS AND GOLD ENDOWED IN THEIR TERRITORIES.

I THEREFORE CHALLENGE THE CENTRAL BANK OF SWAZILAND TO LOOK INTO THIS SUB-SECTOR OF PRECIOUS MINERALS WITH A VISION TO BUILD RESERVES FOR THE KINGDOM OF SWAZILAND.

IN CONCLUSION, I WISH TO EXTEND THE MINISTRY’S PROFOUND GRATITUDE AND DELIGHT FOR ACCEPTING TO SECURELY STORE OUR PRECIOUS MINERAL RESOURCES.

MAY I AT THIS JUNCTURE ALSO WISH YOU SUCCESS IN THE BANKING INDUSTRY AND PLEASE KINDLY LEAVE YOUR DOORS OPEN TO MY MINISTRY WHENEVER WE COME AND REQUEST FOR ANY FORM OF ASSISTANCE WITH REGARDS TO THE MINES AND MINERALS SECTOR.

THANK YOU AND GOD BLESS YOU ALL.