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

The partnership reached a critical juncture in 2024. The global diamond market, pummeled by competition from cheap lab-grown gems and weak demand from China and the US, sent Botswana’s economy into a tailspin. Economic growth plummeted, government revenues shrank, and public finances were strained to a breaking point.

De Beers argues the partnership remains "the most successful resource-based partnership in history." A spokesperson in London told The World News : "Botswana has received over $6 billion in dividends and royalties. We have built hospitals, roads, and a diamond hub in Gaborone. The idea of a raw deal is simply not factual."

"The balance has shifted," says Thabo Mokoena, an economist at the University of Botswana. "De Beers still controls the sightholder list—the exclusive buyers. Botswana provides the rocks, but London decides who buys them. In an era where diamond prices are crashing, that control means everything."

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 partnership reached a critical juncture in 2024

Is Botswana Getting a Raw Deal From De Beers Diamonds? A 2026 Perspective

The signing of the sales deal in early 2025 did not end the debate. Instead, it became a stepping stone for a bolder, more existential play.

LGDs are chemically identical to mined diamonds but cost a fraction of the price. As consumers—particularly Millennials and Gen Z—prioritize price and ethical transparency, the demand for natural stones has softened. Some analysts believe that by the time Botswana gains full control of 50% of its production, the global price for natural rough diamonds may have collapsed to a point where the increased volume cannot offset the lost value. Transparency and the "Middleman" Problem De Beers argues the partnership remains "the most

The government increased its share of diamonds from Debswana to 30% for the first half of the decade, with a scheduled increase to 40% for the final five years.

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.

This shift was solidified in February 2025 , when Botswana signed a long-delayed, landmark 10-year sales agreement and a 25-year extension of its Debswana mining licences through to 2054 . The newly elected administration under President Duma Boko prioritized finalizing this historic deal, which elevates Botswana from a mere resource provider to a dominant player in the global diamond supply chain. when Botswana signed a long-delayed

For decades, the partnership between Botswana and De Beers has been hailed as the "gold standard" of natural resource collaboration. Since the discovery of diamonds shortly after independence in 1966, Botswana has transformed from one of the poorest countries in the world into an upper-middle-income nation. Much of that success is credited to the 50/50 joint venture with the diamond giant.

With Anglo American owning the lion's share of De Beers, profits were flowing out to international shareholders rather than being fully reinvested in the local economy. The Ultimatum and the Landmark Deal