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

If Botswana were getting a truly raw deal, we would expect to see underfunded hospitals and crumbling roads. Instead, we see modern infrastructure and universal education. The revenue from diamonds funds 50% of Botswana’s budget.

[ Mining in Botswana ] ──> [ Aggregation/Rough Sale ] ──> [ Cutting & Polishing ] ──> [ Retail Jewelry ] (High Volume / Taxed) (De Beers Controlled) (Low Local Margin) (Massive Margins) If Botswana were getting a truly raw deal,

To understand the current tension, one must look at Debswana—the 50/50 joint venture between the Botswana government and De Beers. For half a century, this partnership has transformed Botswana from one of the world's poorest nations into a middle-income success story. Diamonds account for roughly 30% of the country’s GDP and the vast majority of its foreign exchange earnings. [ Mining in Botswana ] ──> [ Aggregation/Rough

While De Beers moved its "sights" (sales events) to Gaborone in 2013, a symbolic victory for the nation, critics argue this was a logistical shift rather than a structural economic transformation. Botswana still sells the rough stones. The lucrative downstream industries—where a rough stone becomes a polished jewel sold in a boutique in New York or Hong Kong—remain largely out of reach for the Batswana economy. While De Beers moved its "sights" (sales events)

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.

This article examines whether Botswana is finally wresting control of its diamond destiny or if it is still shackled to a corporation that has historically dictated the terms.