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

The paradigm shifted dramatically under the administration of Botswana’s President Mokgweetsi Masisi. Adopting a fiercely nationalist and populist stance on natural resources, Masisi began publicly questioning the status quo, openly declaring that Botswana was being shortchanged by the legacy arrangement.

In short, Gaborone wants to become Antwerp or Mumbai. It wants to process the diamonds where they are dug.

Ultimately, the debate is no longer just about the split of revenue, but about the viability of the diamond market itself. As Botswana continues to face the reality of market shifts and the eventual depletion of its mines, its primary challenge is no longer just negotiating with De Beers—it is successfully diversifying its economy away from diamonds entirely.

However, in the context of modern resource nationalism, the historic division of wealth undeniably favored the corporate entity over the host nation. The new sales agreement represents a massive course correction, giving Botswana a much larger piece of the pie and vastly increased leverage over how its natural wealth is monetized. It wants to process the diamonds where they are dug

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.

President Masisi has drawn a hard line in the sand. He isn't asking for a revolution; he is asking for . He wants:

How De Beers Shaped - and Still Controls - the Diamond Market However, in the context of modern resource nationalism,

: 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

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

The diamond industry has also had a significant impact on the people of Botswana. The industry has created jobs and generated revenue, but it has also been criticized for its treatment of workers and its impact on local communities. known as Debswana

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

Botswana’s president courts Oman amid De Beers’ control battle

— The World News

This economic crisis became the central issue in the October 2024 election, leading to a stunning political upset: the Botswana Democratic Party (BDP), which had ruled for 58 years, was voted out of power. President Duma Boko of the Umbrella for Democratic Change (UDC) swept into office on a wave of public anger over the government's handling of the diamond downturn and negotiations with De Beers.

Historically, the joint venture between the government and De Beers, known as Debswana , allocated 75% of all rough diamonds directly to De Beers. This arrangement left Botswana's state-owned Okavango Diamond Company (ODC) with just a 25% share to sell independently. Critics argued that this system starved the local economy of job creation and technical expertise, effectively shortchanging the world’s largest producer of rough diamonds by value.