Botswana Says Finalized New Diamond Deal With De Beers
TLDR
- Botswana’s President Duma Boko confirmed a revised diamond extraction and sales agreement with Anglo-American’s De Beers
- The deal maintains Botswana’s gradual increase to 50% of Debswana’s diamond production over the next decade
- Debswana, a joint venture between De Beers and Botswana, sells 75% of its output to De Beers
Botswana’s President Duma Boko confirmed a revised diamond extraction and sales agreement with Anglo-American’s De Beers, securing the country’s key revenue source. The deal maintains Botswana’s gradual increase to 50% of Debswana’s diamond production over the next decade, slightly adjusting the framework agreed upon in 2023 but never signed under former President Mokgweetsi Masisi.
Debswana, a joint venture between De Beers and Botswana, sells 75% of its output to De Beers. Boko also stated that talks to increase Botswana’s 15% ownership in De Beers are progressing. Anglo-American, meanwhile, is considering divesting De Beers as part of a business restructuring.
The agreement comes as Botswana faces economic headwinds, with a struggling diamond market and rising unemployment. The finance ministry projects GDP growth of 3%–4% in 2024, but Boko acknowledged the need to diversify beyond diamonds.
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Key Takeaways
Botswana’s updated deal with De Beers secures its position in the diamond trade, but long-term economic concerns remain. While diamonds account for the majority of the country’s exports, the market downturn has exposed vulnerabilities. The new government inherits an economy that likely contracted in 2023, driven by lower global demand for diamonds and competition from lab-grown alternatives. Although Botswana’s leaders have reinvested diamond revenues into health and education, economic grievances—especially among young people—contributed to the ruling party’s defeat. Boko’s administration has promised economic reforms, including higher wages and improved social services. However, execution will be critical, as reliance on a single commodity remains a structural risk. The finance ministry’s projected rebound in diamond sales offers some relief, but diversification efforts will determine Botswana’s long-term resilience.
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