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

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.

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.

The most dramatic twist in this saga involves the future of De Beers itself. With its parent company, Anglo-American, looking to exit the diamond business, De Beers is officially up for sale. This has presented Botswana with a monumental decision: should it use its pre-emptive rights to buy a controlling stake in the very company that has historically controlled its destiny?

For now, Gaborone holds the cards. The question is whether De Beers is willing to pay the price to keep them. The debate over whether Botswana is getting a

Why the aggression now? Because Botswana finally has leverage. De Beers' supply from other major sources, like South Africa and Canada, has dwindled. Furthermore, sanctions on Russian diamonds (Alrosa) have tightened global supply. Botswana is currently the world’s largest producer of diamonds by value. Without Botswana’s output, De Beers would struggle to maintain its dominance in the market.

"If Botswana pushes too hard," warns one mining analyst, "De Beers might divert capital to newer discoveries in Canada or Angola. You don't kill the goose that lays the golden egg—but you also don't let the goose starve the farmer."

Yet, beneath this success story, a crucial question has always lingered: has Botswana been getting a raw deal? For decades, the government was only entitled to sell 25% of the rough diamonds produced in its own soil, with the remaining 75% channelled through De Beers's network. A new agreement signed in early 2025 has shifted the terms significantly, but the drama is far from over. Now, Botswana’s new president is pushing for a seismic shift – to effectively take control of De Beers itself. Since the discovery of diamonds shortly after independence

The discussion surrounding whether Botswana is getting a "raw deal" from has shifted significantly following the formal signing of a new partnership agreement in February 2025 . While historical sentiments—including those from former President Masisi—suggested Botswana was previously undervalued, the current consensus under President Duma Boko leans toward a more balanced, "transformational" relationship. Recent Developments (as of April 2026)

During the high-stakes contract renewals, Masisi shocked the mining world by threatening to walk away from De Beers entirely if the corporate giant did not concede to Botswana's demands for a bigger slice of the value chain.

But the "raw deal" isn't about poverty—it's about . With its parent company, Anglo-American, looking to exit

The fierce rhetoric eventually culminated in a new, 10-year sales agreement for Debswana’s rough diamonds and a 25-year extension on its mining licenses. The new deal fundamentally rewires the power dynamic between the state and the corporation.

The diamond industry is in crisis. Lab-grown diamonds (LGDs) have collapsed the price of low-quality natural stones. A two-carat lab stone that cost $5,000 five years ago now sells for $500. While high-end natural diamonds remain resilient, the middle market is a bloodbath.

: As of April 2026, Anglo American Plc is seeking to divest its 85% stake in De Beers. Botswana, which already owns 15%, is actively exploring a controlling stake (over 50%) to secure greater sovereignty over its resources. The "Raw Deal" Perspective vs. Current Reality Is Botswana Getting a Raw Deal From De Beers Diamonds?

A major milestone occurred in 2011 when De Beers agreed to move its international sales, sorting, and aggregation operations from London to Gaborone, Botswana's capital. This move was intended to stimulate local economic growth and create high-value jobs.

The seeds of the current discontent were sown in previous renegotiations. Historically, De Beers moved diamonds from Botswana to London for sorting and aggregation before they were sold.