Is Botswana Getting A Raw Deal From De Beers Diamonds - The World News ❲2024❳

Date: March 23, 2026.

Is Botswana Getting a Raw Deal From De Beers? For decades, the partnership between

and De Beers was hailed as the ultimate success story in African mining

. But as the global diamond market shifts, the question of whether Botswana is getting its fair share has moved from boardroom whispers to front-page news. The Changing Power Balance Remaining concerns: Some analysts argue Botswana still lacks

Historically, De Beers controlled the lion's share of production, but the tide is turning. Under the new 10-year sales agreement signed in February 2025 , Botswana has secured a much larger "slice of the pie": Production Share: Okavango Diamond Company (ODC) —Botswana’s state-owned seller—now starts with Debswana’s production, a significant jump from the previous 25%. Future Growth: This share is scheduled to climb to by 2033, effectively giving Botswana equal selling power. Development Funding: De Beers has committed up to 10 billion Pula ($712 million)

to a "Diamonds for Development" fund to help diversify Botswana’s economy. Why "Raw Deal" Talk Persists

Despite these gains, critics and local leaders argue the nation remains vulnerable:

The claim that is getting a "raw deal" from De Beers has been a central theme in recent high-stakes negotiations, driven by the country's desire to capture more value from its natural resources Date: March 23, 2026

. Historically, the partnership transformed Botswana from one of the world's poorest nations in 1966 into an upper-middle-income country today Key Arguments for a "Raw Deal" Low Share of Sales : For years, Botswana's state-owned Okavango Diamond Company (ODC)

only received 25% of the diamonds mined by their joint venture, , while De Beers took 75%. Missing Downstream Value

: Most rough diamonds were historically shipped abroad for cutting and polishing in hubs like India, depriving Botswana of higher-value manufacturing and retail jobs. Alleged Profit Shifting

: Some investigations have suggested "revenue leakage" where diamond values "miraculously increase" once they cross Botswana's borders, potentially reducing the country's tax take. The Improved 2025 Deal Date: March 23

After years of contentious negotiations and public criticism from former President Mokgweetsi Masisi, a formal 10-year sales agreement was signed in February 2025. Is Botswana Getting a Raw Deal From De Beers Diamonds?

The central argument for Botswana getting a "raw deal" revolves around value addition.

Historically, De Beers mined the rough diamonds in Botswana and shipped them to London, where they were sorted, aggregated, and sold to manufacturers. The high-value activities—sorting, cutting, polishing, and retail—happened elsewhere, keeping the bulk of the economic profit outside Botswana’s borders.

While De Beers moved its "sights" (sales events) to Gaborone in 2013, a symbolic victory for the nation, critics argue this was a logistical shift rather than a structural economic transformation. Botswana still sells the rough stones. The lucrative downstream industries—where a rough stone becomes a polished jewel sold in a boutique in New York or Hong Kong—remain largely out of reach for the Batswana economy.

The government is now demanding a larger share of the rough diamonds to be processed locally, aiming to turn Botswana into a global diamond hub, not just a supplier of raw materials.

Botswana and De Beers have a long-running, high-stakes partnership: Debswana, the 50:50 joint venture, has powered much of Botswana’s post‑independence prosperity by mining and marketing the country’s gem‑quality diamonds. Recently that relationship and the structure of diamond sales have come under scrutiny as market shocks (lab‑grown diamonds, tariffs, weaker demand) and renegotiated sales arrangements change who captures value.