Is Botswana Getting A Raw Deal From De Beers Diamonds - The World News ((install)) -

In recent years, the Botswana government has taken steps to renegotiate its revenue sharing agreement with De Beers. In 2020, the government announced a new 10-year agreement, which includes a higher revenue share for the government and increased investment in local communities.

For now, Gaborone holds the cards. The question is whether De Beers is willing to pay the price to keep them.

The mining agreement between De Beers and the government of Botswana has been the subject of much debate. The agreement, which was signed in 1971, gives De Beers the rights to extract diamonds from the Orapa mine for a period of 25 years. The agreement was later extended to cover the Jwaneng mine, and in 2004, the government of Botswana and De Beers signed a new agreement that extended the life of the Orapa mine until 2035. In recent years, the Botswana government has taken

Consider the numbers. In 2023, despite a slowdown, Debswana produced approximately 25 million carats. While Botswana’s treasury collected billions in taxes and dividends, the downstream revenue—the 200% markup that turns a rough stone into a polished engagement ring—almost entirely flowed to factories in India, China, and the diamond exchanges of New York and Tel Aviv.

The deeper Botswana digs into its mines, the more expensive operations become. The upcoming Jwaneng Underground expansion project requires billions of dollars in capital expenditure to transition from open-pit to underground mining. As a 50/50 partner, Botswana must foot half the bill. If the government squeezes De Beers' margins too tightly, it risks disincentivizing the massive corporate investments required to keep the mines viable for the next generation. The Verdict: A Structural Shift, Not a Raw Deal So, is Botswana getting a raw deal from De Beers? The question is whether De Beers is willing

To understand the current tension, one must look at Debswana—the 50/50 joint venture between the Botswana government and De Beers. For half a century, this partnership has transformed Botswana from one of the world's poorest nations into a middle-income success story. Diamonds account for roughly 30% of the country’s GDP and the vast majority of its foreign exchange earnings.

De Beers’ counter is equally simple: We are the only ones with the global marketing machine (the "A Diamond Is Forever" legacy) and the banking relationships to keep prices stable. The agreement was later extended to cover the

As of early 2026, President Duma Boko has prioritized this transformation, aiming to boost local jobs, attract investment, and enhance the nation's economic independence, according to a Sunday Standard BW Facebook post and The Patriot on Sunday . Why Concerns Persist: The "Raw Deal" Argument

So, is Botswana getting a raw deal from De Beers? The new sales agreement represents an improved financial arrangement, but it is a deal signed in the middle of a market earthquake. The percentages and quotas mean little when the entire global industry is in a state of crisis.

For decades, Botswana has been hailed as one of the few African nations to successfully bypass the notorious "resource curse". Discovered in the 1960s, just as the country gained independence, diamonds quickly transformed Botswana from one of the world's poorest countries into an upper-middle-income economy.