Is Botswana Getting A Raw Deal From De Beers Diamonds - The World News 〈Exclusive Deal〉

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)

Negotiations for a new deal have been ongoing for over a year, and they have turned ugly.

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

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 Historically, De Beers controlled the lion's share of

On paper, that is true. Debswana mines the diamonds. But here lies the rub: De Beers controls the sight . For decades, virtually all of Botswana’s rough diamonds were sold exclusively through De Beers’ London-based sales arm. Botswana got 50% of the mining profits, but De Beers captured the margin on sorting, valuing, and global distribution.

De Beers, now majority-owned by Anglo American, is resisting. They argue that the global diamond market is fragile. They claim that flooding a landlocked country with rough stones that cannot be sold for top dollar would destroy value. Privately, industry insiders admit that De Beers is terrified of a precedent. If Botswana takes control of its own supply, what stops Canada, South Africa, or Namibia from doing the same?

Some analysts argue Botswana still lacks full pricing power, because De Beers controls the global "sight" system and marketing (e.g., "A Diamond Is Forever"). Botswana also struggles to build a competitive local cutting and polishing industry due to lower wages elsewhere (India, for instance). Development Funding: De Beers has committed up to

De Beers committed to investing an initial 1 billion pula ($75 million USD) into a development fund aimed at diversifying Botswana's economy, a figure scaling up to 10 billion pula over the course of the contract.

On paper, Botswana’s take from its diamond operations is among the highest in the world for a mining nation. When combining corporate taxes, royalties, and dividends from its 50% stake in Debswana—plus the government's direct 15% ownership of De Beers Group itself—Botswana pockets roughly generated by Debswana’s operations.

The partnership was forged in the late 1960s by Botswana’s founding President, Sir Seretse Khama, and De Beers chairman Harry Oppenheimer. At the time, Botswana was dirt-poor, and De Beers was the absolute monarch of global diamonds. Khama offered a deal: De Beers could mine, but Botswana would get 50% of the profits. As of early 2026, President Duma Boko has

Botswana, which already holds 15% equity in De Beers, is now actively working to raise that stake to over 50%—effectively taking control of the entire pipeline: mining, sorting, marketing, and retail. In a bold move, Boko rebuffed advice from the International Monetary Fund (IMF) to cool the acquisition, insisting that controlling the "totality of the value chain" was non-negotiable.

So, what can be done to ensure that Botswana gets a fair deal from De Beers diamonds? Here are a few suggestions:

From a strict accounting perspective, the answer is nuanced. Historically, no. De Beers lifted Botswana from GDP per capita of $70 to over $8,000. The infrastructure, health care, and democratic stability are unparalleled in Africa.

The current deal is a relic of a pre-synthetic, pre-internet monopoly era. In a world where De Beers’ market share has shrunk from 90% to around 30%, Botswana no longer needs a guardian; it needs a logistics partner.