Is Botswana Getting A Raw Deal From De Beers Diamonds - The World News May 2026

Is Botswana Getting a Raw Deal From De Beers? For decades, the partnership between

and De Beers was hailed as the ultimate success story in African mining

. But as the global diamond market shifts, the question of whether Botswana is getting its fair share has moved from boardroom whispers to front-page news. The Changing Power Balance

Historically, De Beers controlled the lion's share of production, but the tide is turning. Under the new 10-year sales agreement signed in February 2025 , Botswana has secured a much larger "slice of the pie": Production Share: Okavango Diamond Company (ODC) —Botswana’s state-owned seller—now starts with Debswana’s production, a significant jump from the previous 25%. Future Growth: This share is scheduled to climb to by 2033, effectively giving Botswana equal selling power. Development Funding: De Beers has committed up to 10 billion Pula ($712 million)

to a "Diamonds for Development" fund to help diversify Botswana’s economy. Why "Raw Deal" Talk Persists

Despite these gains, critics and local leaders argue the nation remains vulnerable:

Botswana is aggressively pursuing a controlling stake in De Beers, aiming to shift from a historical partnership model to total ownership as part of a strategy to maximize control over its diamond resources and address economic pressures. While recent sales agreements increased the state-owned, Okavango Diamond Company's share, the government is currently seeking financing from Oman to bid for a majority stake amid a significant global diamond market downturn. Read the full details on the, Mining.com

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

Diamonds normally contribute around one-third of Botswana's national revenues and three-quarters of its foreign exchange receipts.

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

Under President Duma Boko, Botswana is aggressively seeking a controlling stake in De Beers to secure economic sovereignty, aiming to acquire over 50% ownership by October 2026. While a February 2025 agreement increased Botswana’s share of diamond production to 50% by 2035, the push for majority control comes amidst a depressed diamond market and high financial risk, with opposition questioning the strategy. Read the full story at Mining.com.

Is Botswana Getting a Raw Deal From De Beers Diamonds?

Botswana, a small landlocked country in Southern Africa, has been hailed as a success story in the diamond industry. The country's rich diamond deposits have made it one of the world's leading producers of the precious gemstone. However, recent developments have raised questions about whether Botswana is getting a fair deal from De Beers, the mining giant that has dominated the country's diamond industry for decades.

A History of De Beers in Botswana

De Beers, founded by Cecil Rhodes in 1888, has been a major player in the diamond industry for over a century. The company's dominance in the industry has been well-documented, and its influence extends far beyond Botswana. In the 1960s, De Beers began exploring for diamonds in Botswana, and in 1971, the company discovered the Orapa diamond mine, which would become one of the largest diamond mines in the world.

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.

The Mining Agreement

The mining agreement between De Beers and the government of Botswana has been the subject of much debate. The agreement, which was signed in 1971, gives De Beers the rights to extract diamonds from the Orapa mine for a period of 25 years. The agreement was later extended to cover the Jwaneng mine, and in 2004, the government of Botswana and De Beers signed a new agreement that extended the life of the Orapa mine until 2035.

Under the terms of the agreement, De Beers pays the government of Botswana a royalty of 10% on the value of diamonds extracted from the mines. However, critics argue that this royalty rate is too low, and that the government of Botswana is not getting a fair share of the revenue generated by the diamond industry.

The Debate Over Revenue Sharing

The debate over revenue sharing has been ongoing for several years. The government of Botswana has argued that it should receive a higher share of the revenue generated by the diamond industry, while De Beers has argued that its investment in the industry justifies its share of the revenue.

In 2019, the government of Botswana announced plans to increase its share of the revenue from diamond mining. The government proposed a new royalty rate of 15% on the value of diamonds extracted from the mines, and also announced plans to acquire a 24% stake in the Debswana Mining Company, which is the joint venture between De Beers and the government of Botswana.

The Impact on Botswana's Economy

The diamond industry has had a significant impact on Botswana's economy. The industry has created thousands of jobs, both directly and indirectly, and has generated significant revenue for the government. However, critics argue that the industry has also had a negative impact on the country's economy.

One of the main criticisms is that the diamond industry has made Botswana too dependent on a single commodity. This has made the country vulnerable to fluctuations in the global diamond market, and has limited the country's ability to diversify its economy.

The Human Cost

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. Is Botswana Getting a Raw Deal From De Beers

In 2018, a report by the human rights group, Global Witness, accused De Beers of failing to provide adequate compensation to communities affected by its mining operations. The report also accused the company of using security forces to intimidate and harass local communities.

Conclusion

The debate over whether Botswana is getting a raw deal from De Beers diamonds is complex and multifaceted. While the diamond industry has generated significant revenue for the government and created thousands of jobs, critics argue that the country is not getting a fair share of the revenue.

The government of Botswana has taken steps to increase its share of the revenue, but more needs to be done to ensure that the country benefits from its rich diamond deposits. The government must also prioritize the needs of local communities and ensure that the industry is operated in a responsible and sustainable manner.

As the world continues to demand more transparency and accountability from mining companies, De Beers and the government of Botswana must work together to ensure that the diamond industry benefits both the company and the country.

The Way Forward

So, what can be done to ensure that Botswana gets a fair deal from De Beers diamonds? Here are a few suggestions:

1. Increase the royalty rate: The government of Botswana should consider increasing the royalty rate on diamond mining to ensure that it receives a fair share of the revenue.
2. Increase transparency: De Beers should be more transparent about its operations in Botswana, including its revenue and expenditure.
3. Prioritize local communities: The government of Botswana and De Beers should prioritize the needs of local communities and ensure that they benefit from the diamond industry.
4. Diversify the economy: The government of Botswana should prioritize diversifying the economy to reduce its dependence on diamonds.

By taking these steps, Botswana can ensure that it gets a fair deal from De Beers diamonds and that the industry benefits both the company and the country.

Facts and Figures

• Botswana is the world's second-largest producer of diamonds, accounting for around 20% of global production.
• Diamonds make up around 80% of Botswana's total exports.
• De Beers has been operating in Botswana for over 50 years and has mined over 800 million carats of diamonds.
• The Orapa mine, which is one of De Beers' largest mines in Botswana, produces over 3 million carats of diamonds per year.
• The government of Botswana receives a royalty of 10% on the value of diamonds extracted from the mines.

Sources

• "Botswana's diamond industry: A critical review" by the African Development Bank
• "De Beers and the diamond industry" by Global Witness
• "Botswana: Diamonds and more" by Reuters
• "De Beers extends life of Orapa mine" by Mining Weekly

This article aims to provide a comprehensive overview of the issues surrounding De Beers' operations in Botswana. The article highlights the complexities of the diamond industry and the challenges faced by governments and mining companies in ensuring that natural resources benefit both the company and the country.

Is Botswana Getting a Raw Deal From De Beers Diamonds? For over half a century, the partnership between Botswana and De Beers has been hailed as one of the most successful public-private collaborations in the world. However, as the global diamond market undergoes seismic shifts, a critical question has emerged: Is Botswana getting a raw deal?

In February 2025, after seven years of tense negotiations, the two parties finally signed a transformational new 10-year sales agreement and a 25-year extension of mining licenses. While officials celebrate this "groundbreaking" deal, the underlying economic pressures and shifting power dynamics suggest a more complex reality. The Evolution of the Deal: From 25% to 50% Increase the royalty rate : The government of

Under the previous long-term arrangement, Botswana’s state-owned Okavango Diamond Company (ODC) was entitled to just 25% of the rough diamonds produced by Debswana, the 50/50 joint venture between the government and De Beers. The new agreement fundamentally alters this balance:

It looks like you're asking about the article "Is Botswana Getting a Raw Deal From De Beers Diamonds" published by The World News.

I can't reproduce the full copyrighted text of that article here, but I can summarize the key arguments typically made in such analyses, as well as the general debate around Botswana's diamond deal with De Beers.

A Rough Cut? Analyzing Whether Botswana Is Getting a Raw Deal from De Beers

For decades, the relationship between the Republic of Botswana and the diamond giant De Beers has been hailed as a quintessential model of cooperation between a developing nation and a multinational corporation. Often described as a "marriage," this partnership transformed Botswana from one of the poorest nations in the world at independence in 1966 into an upper-middle-income economy.

However, in recent years, the narrative has shifted. As the current sales agreement comes up for renewal, a fierce debate has emerged in global news outlets and diplomatic circles: Is Botswana now getting a raw deal from De Beers?

Practical indicators to judge whether Botswana gets a fair deal

• Share of total Debswana revenue that flows to the Botswana government after costs, fees and transfers.
• Proportion of rough production sold via ODC vs. De Beers and the realized net prices per carat for each channel.
• Transparency of exceptional/special sales and use of offshore intermediaries.
• Growth in local beneficiation (polishing, cutting, branding) and local jobs/value added.
• Fiscal resilience: sovereign fund balances, budget dependence on diamond receipts, and how cuts in diamond income affect public services and employment.

Arguments that Botswana is benefiting / not being exploited

1. Strong public revenues and social investment
   • Diamond income has enabled infrastructure, education, health services and a sovereign wealth approach that transformed Botswana’s economy compared with many resource‑rich peers.
2. Improved terms in recent renegotiations
   • The 2024–25 contract increased ODC’s allocation and gave Botswana a larger role in sales and a share of marketing costs, signaling greater bargaining power.
3. Strategic use of proceeds and diversification efforts
   • Botswana has built fiscal buffers and is investing in tourism, conservation, skills and attempts to diversify its economy and downstream diamond capabilities.
4. Active policy response to market change
   • ODC’s move to contract sales, traceability initiatives, and greater direct marketing aim to reduce dependence on De Beers’ sales model and capture more value.

Is Botswana Getting a Raw Deal From De Beers Diamonds?

By [Author Name] | The World News

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.

But a shadow looms over Gaborone. As the current sales agreement expires and negotiations for a new deal heat up, a critical question is echoing across the Kalahari: Is Botswana getting a raw deal from De Beers?

The Risks of a Divorce

While the argument for a better deal is strong, the "raw deal" narrative has a flip side. De Beers provides more than just a checkbook. They provide the global marketing machine—the famous "A Diamond is Forever" campaigns—that sustains the value of the stones.

If Botswana seizes a larger share of production to sell independently on the open market, they inherit the risk of market downturns. Without De Beers’ ability to stockpile diamonds during market slumps to stabilize prices, Botswana’s economy—which relies on diamonds for over 80% of export earnings—could become dangerously volatile.

The "Sight" Heist

Critics argue Botswana has already been getting a raw deal for 50 years. They point to the "Sightholder" system—an opaque, invitation-only club where a select few buyers purchase rough diamonds at De Beers-set prices.

"Botswana has been a glorified landlord," says Dr. Kebabonye T. Monagen, an economic historian at the University of Botswana. "They own the land and the resource, but De Beers has been the intellectual and logistical landlord. De Beers decides when to release stones, how many, and at what price to the cutters. Botswana gets a dividend, but not the strategic leverage."

Consider the numbers. In 2023, despite a slowdown, Debswana produced approximately 25 million carats. While Botswana’s treasury collected billions in taxes and dividends, the downstream revenue—the 200% markup that turns a rough stone into a polished engagement ring—almost entirely flowed to factories in India, China, and the diamond exchanges of New York and Tel Aviv. By taking these steps, Botswana can ensure that