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

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 .

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.

Despite decades of mining, Botswana’s unemployment rate remains stubbornly high, hovering around 25%. The government argues that by keeping cutting and polishing centers in places like Surat (India) or Antwerp (Belgium), De Beers has exported thousands of potential Motswana jobs. Under President Duma Boko, Botswana is aggressively seeking

Domestic critics and international institutions have urged extreme caution. The Botswana Congress Party (BCP), an opposition party, has called the potential acquisition "illegal," arguing that it has been subjected to no proper appraisal or due diligence and could potentially bankrupt the country.

The partnership was forged in the late 1960s by Botswana’s founding President, Sir Seretse Khama, and De Beers chairman Harry Oppenheimer. At the time, Botswana was dirt-poor, and De Beers was the absolute monarch of global diamonds. Khama offered a deal: De Beers could mine, but Botswana would get 50% of the profits. Boko wasted no time, declaring a health emergency

Measuring fairness: frameworks and metrics Determining whether Botswana is getting a raw deal depends on the metric:

To raise the capital required for such a mammoth purchase, Botswana has been courting regional allies. Angola has proposed a consortium with Botswana, Namibia, and South Africa to jointly acquire and operate De Beers. This would mark the end of the "colonial-era mining model," as one commentator put it, shifting the world's most famous diamond company from London and Johannesburg to Gaborone. In return, De Beers received a 25-year extension

only received 25% of the diamonds mined by their joint venture, , while De Beers took 75%. Missing Downstream Value

While the new agreement is a political and economic triumph for President Masisi, it introduces significant vulnerabilities that critics argue could backfire, turning a hard-won victory into a logistical raw deal. The Challenge of Selling 50% of Output

Diamonds account for approximately 70% of Botswana’s exports, one-third of government revenue, and roughly a quarter of the country’s GDP. When the diamond market sneezes, Botswana catches a severe cold. Currently, the global diamond industry is in a "prolonged downturn." Weak demand from China, shifting tastes toward lab-grown stones, and a glut of inventory have hammered producers.