WASHINGTON (All Africa) – The Overseas Private Investment Corporation (OPIC) has approved a $25.2 million credit facility that will enable a diamond-cutting factory in Namibia to expand its operations, thus supporting the country's effort to produce premium-quality diamonds.

The recently announced project, OPIC's second-ever in Namibia, will enhance the operations of NamGem Diamond Manufacturing Company Ltd. (NamGem), Namibia's flagship diamond cutting and polishing factory. The U.S. sponsor of the project is Lazare Kaplan International Inc. (LKI), one of the world's leading diamond cutting and polishing companies and a strategic partner in NamGem.

An LKI subsidiary will use the credit facility to expand NamGem's operations, enabling it to produce premium-size and premium-quality diamonds and allowing Namibia to realize its comparative advantage in the diamond cutting and polishing industry.

The facility fulfills a 2004 framework agreement in which OPIC pledged to support LKI's efforts to improve diamond production and sales in emerging markets throughout the world, particularly in Africa.

"By enabling Namibia to add value to its substantial diamond deposits, this project will enhance the country's role in the industry significantly, imparting new expertise to the local work force and thereby accelerating Namibia's economic growth," OPIC President and Chief Executive Officer Robert Mosbacher Jr. said in a June 27 OPIC press release.

"OPIC is pleased to support a project with so many developmental benefits, especially since they coincide with Namibia's stated developmental agenda," Mosbacher added. Speaking on behalf of Namibia's government, Minister of Mines and Energy Erkki Nghimtina said: "Adding value to our diamonds and building world-class economic partnerships, especially in the manufacturing sector, are priorities for the Namibian government. This initiative supports all these vital objectives and thus merits our full support and commendation."

"Namibia has been one of Africa's consistent success stories since gaining independence in 1990," LKI President Leon Tempelsman said, adding that his company is pleased to be expanding its long-standing involvement in the country.

"Our continuing investments reflect our strong belief in the prospects of NamGem as a modern diamond cutting and polishing enterprise, and with the participation of OPIC those prospects can only brighten," Tempelsman added.

Lazare Kaplan International is the only publicly traded diamond cutting and polishing company in the United States. It has manufacturing operations in Namibia, South Africa, Puerto Rico, Russia and Belgium, with extensive marketing and retail networks in the United States, Japan, the Pacific Rim and Europe.

As a founding member of the United Nations Global Compact, LKI actively supports and complies with U.S. and international laws and regulations that prohibit trade in conflict diamonds, prevent money laundering and combat the financing of terrorism.

OPIC, established as a U.S. government agency in 1971, helps U.S. businesses invest overseas, fosters economic development in new and emerging markets, complements the private sector in managing risks associated with foreign direct investment and supports U.S. foreign policy.

OPIC's political risk insurance and financing have helped U.S. businesses of all sizes invest in more than 150 emerging markets and developing nations worldwide. In its 35-year history, OPIC has supported $164 billion worth of investments that have helped developing countries generate more than 732,000 host-country jobs and $13 billion in host-government revenues.