Is Botswana Getting A Raw Deal From De Beers Diamonds - The World News Review

The question of whether Botswana is getting a raw deal from De Beers diamonds is complex and multifaceted. While there are valid concerns about revenue sharing and transparency, it is also important to acknowledge the economic benefits and job creation opportunities provided by the diamond industry. The new agreement between the government and De Beers is a step in the right direction, but ongoing monitoring and evaluation are necessary to ensure that Botswana's diamond resources are used to benefit its citizens.

However, in recent years, a simmering tension has breached the surface. Accusations that Botswana is getting a "raw deal" have shifted from radical political rhetoric to mainstream government policy. As global diamond markets face unprecedented shifts, the geopolitical and economic struggle over Botswana’s subterranean wealth has reached a critical turning point. The Bedrock of the Partnership: Debswana

From a purely extractive standpoint, Botswana receives one of the highest government takes of any mining nation in the world. Why, then, is there growing dissatisfaction? The Core of the Grievance: Value Beyond Mining

Botswana’s long partnership with De Beers delivered major national benefits, but structural asymmetries, opacity, and dependence on a volatile market created real risks. Recent contract changes give Botswana more direct sales power and scope to capture value, yet global market shifts mean increased bargaining power does not automatically translate to higher revenues. Whether Botswana is “getting a raw deal” depends on ongoing transparency, how effectively it converts larger sales shares into better net prices, and its success diversifying and building downstream value. The question of whether Botswana is getting a

However, the economic establishment, including the International Monetary Fund (IMF), has strongly advised against this move. Given Botswana's already strained fiscal position, its rising debt-to-GDP ratio, and the ongoing slump in the diamond market, critics argue that spending billions of dollars to acquire a distressed asset like De Beers would be financial suicide. The opposition Botswana Congress Party (BCP) has even called the potential acquisition "illegal," arguing it "could bankrupt the country".

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.

The debate over whether Botswana is getting a raw deal ultimately forces the nation to look toward a future where it is less dependent on a single corporate partner—and a single commodity. However, in recent years, a simmering tension has

Under the long-standing sales agreement, Debswana was obligated to sell 100% of its rough diamonds directly to De Beers. De Beers would then mix these stones with diamonds from South Africa, Namibia, and Canada, before selling them to its hand-picked buyers (Sightholders).

Botswana's diamond stockpile swells as gem price slump persists - Reuters

The current agreement allows De Beers to market the majority of Debswana’s production. The government has argued that the fees and royalties they receive do not reflect the true market value of the stones, especially as De Beers rebrands itself towards "ethical" and "conflict-free" diamonds. Botswana’s President Mokgweetsi Masisi has been vocal about this, suggesting that Botswana deserves a larger share of the pie because the diamonds are the foundation of De Beers' global reputation. The Bedrock of the Partnership: Debswana From a

While rough diamonds are now aggregated in Botswana, the local cutting and polishing industry struggles to compete with established hubs in India and Israel. Critics argue that De Beers protects its traditional supply chains, leaving Botswana with the low-margin work of sorting while high-margin manufacturing remains offshore. The "raw deal" narrative suggests that Botswana is doing the heavy lifting of extraction while the true wealth generation happens elsewhere.

+-------------------------------------------------------------+ | OKAVANGO DIAMOND COMPANY SHARE | +-------------------------------------------------------------+ | Old Deal: [=======> ] 25% | | | | New Deal: [=======================================>] 50% | | (To be scaled incrementally over 10 years) | +-------------------------------------------------------------+ Key Milestones of the New Pact:

Today, De Beers is the largest diamond mining company in Botswana, with a portfolio of mines that include Orapa, Jwaneng, and Venetia. The company's operations in Botswana account for a significant portion of the country's diamond production, and it is estimated that diamonds make up around 80% of Botswana's total exports.

Boko wasted no time, declaring a health emergency as the crisis led to medicine shortages and social tensions. He also moved aggressively to finalize a new sales agreement with De Beers, which was signed in February 2025. The 10-year deal gives Botswana a 30% share of Debswana's output in the first five years, rising to 40% in the second five-year term, with an option for a 50/50 split after a potential extension. In return, De Beers received a 25-year extension of its mining licenses for Debswana, securing its position until 2054.