Botswana and De Beers ink landmark diamond deal amid economic uncertainty

Botswana and South African mining giant De Beers have finalized a landmark 10-year agreement, enhancing the country’s stake in diamond sales and providing a boost to its critical diamond sector.
After six years of negotiations, the deal will see Botswana’s share of rough diamond sales rise from 25% to 30% in the first five years, with the potential to increase to 40% thereafter. Additionally, De Beers has secured a 25-year extension for its mining licenses in Botswana, solidifying its long-term presence in the country’s lucrative diamond industry. Diamonds are vital to Botswana’s economy, accounting for approximately 80% of its export revenues and a quarter of its GDP. However, the industry has been struggling with a slump in global sales, exacerbated by sanctions on Russian diamonds. The agreement, which is seen as a critical step to stabilize the industry, also promises to enhance the marketing of Botswana’s diamonds, with De Beers committing to an initial $75 million investment in a diamond development program.
While the deal has been hailed by local economists and government officials, some civil society groups are urging for tangible benefits to reach the communities impacted by mining. As Botswana grapples with fluctuating diamond prices, the new deal marks an important move towards economic stability, ensuring that the country remains a key player in the global diamond market. The agreement also reflects president Duma Boko’s commitment to securing a prosperous future for Botswana’s diamond industry, as the nation is recognized as the largest producer of diamonds by value and ranks second in volume, following Russia.