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

However, modern resource economists point to a structural flaw: While Botswana owns half the rocks , it owns almost none of the value chain . The diamonds are shipped to De Beers’ sights in Gaborone (a recent concession) but primarily to London and Dubai for sorting, valuation, and sale to polishers.

Legally, Botswana and De Beers have a 50/50 partnership in Debswana, the mining giant that digs up roughly 20% of the world’s diamonds by value. On paper, this is equality. In practice, critics argue it is a feudal arrangement dressed in modern suits. However, modern resource economists point to a structural

But beneath the polished surface of corporate press releases and state banquets, a seismic tension is brewing. As the two parties haggle over a new 10-year sales agreement following the expiry of their last deal in 2023, a pressing question echoes through the Kalahari: Is Botswana getting a raw deal from De Beers? On paper, this is equality

The man leading the charge for renegotiation is President Mokgweetsi Masisi. In recent years, he has shed the diplomatic velvet glove. In 2022, he famously rejected a De Beers proposal, stating that Botswana was "not desperate" and would walk away if the terms did not reflect the country’s new bargaining power. As the two parties haggle over a new

If Masisi gets his way, we may soon see "Made in Botswana" on engagement rings. If he fails, Botswana risks remaining the world’s most elegant quarry—rich in stone, but poor in power.

: The deal emphasizes shifting the diamond value chain—such as grading and jewelry manufacturing—to Botswana to boost local employment. The "Raw Deal" Argument: Market Volatility and Lab Diamonds