Despite the improved terms, voices in Botswana, including politicians like Ndaba Gaolathe, argue that the country has historically missed opportunities to own its full value chain.
Rather than receiving a raw deal, the nation has fundamentally rewritten its relationship with De Beers.
Botswana, De Beers sign diamond deal - The Patriot On Sunday Despite the improved terms, voices in Botswana, including
New frameworks mandate that De Beers actively assist in building Botswana’s domestic cutting, polishing, and diamond-tech capabilities, transforming Gaborone from a mining hub into a genuine technological and financial center for gemstones.
While Botswana’s Treasury profited from the 50% equity, it lacked the market power to dictate the global price or strategy of its own resources. This is the imbalance that set the stage for a massive renegotiation. While Botswana’s Treasury profited from the 50% equity,
The "aggregation" process, where Botswana’s high-quality stones are mixed with lower-quality stones from other De Beers mines (like those in Canada or South Africa), might dilute the premium price Botswana should receive. The Burden of Diversification
Is Botswana Getting a Raw Deal From De Beers Diamonds? The decades-long marriage between the Republic of Botswana and De Beers Group is often hailed as the world’s most successful public-private partnership. Since the discovery of diamonds at Orapa in 1967, shortly after Botswana gained independence, this alliance has transformed a destitute pastoral nation into a thriving upper-middle-income economy. The Burden of Diversification Is Botswana Getting a
De Beers has historically had the right to buy 100% of Debswana's production. Critics argue that De Beers then sells diamonds at higher prices through its global distribution network, leaving Botswana with only mining profits and taxes, not downstream margins.
Perhaps the most significant "raw deal" isn't about the diamonds themselves, but the dependency they created. Botswana’s economy is a "monoculture." When the diamond market sneezes, Botswana catches a cold.
Conversely, industry experts and defenders of the partnership argue that Botswana’s arrangement with De Beers is actually one of the most progressive resource contracts in the world.