Botswana, De Beers to finalise diamond sales agreement
Botswana is poised to finalize a transformative diamond sales agreement with De Beers, marking a pivotal moment for the nation’s economy.
President Duma Boko, who assumed office in November 2024, has made the deal a cornerstone of his administration’s economic strategy, according to a Reuters report. The agreement will significantly increase Botswana’s share of diamonds from the Debswana joint venture, a collaboration between Botswana and De Beers.
Sales agreement
Under the terms of the agreement, Botswana’s diamond allocation from the Debswana JV will progressively rise to 50% over the next decade. Currently, 75% of Debswana’s diamond production is sold to De Beers, with Botswana holding a 15% stake in the company. President Boko indicated that discussions about raising Botswana’s ownership in De Beers are advancing well.
The deal, previously stalled under former President Mokgweetsi Masisi, reflects Botswana’s effort to diversify its economy and reduce reliance on diamond exports, which have been a cornerstone of its economic success. The nation has invested diamond revenues into critical sectors such as health, education, and social welfare, achieving a GDP per capita of $7,250 in 2023, significantly above the sub-Saharan Africa average of $4,800.
Despite a recent downturn in the global diamond market and rising unemployment, Botswana’s Finance Ministry remains optimistic, forecasting a market rebound and GDP growth of 3–4% this year. Anglo American, the parent company of De Beers, is also considering divesting the diamond company as part of a broader restructuring initiative.
President Boko outlined his administration’s broader economic agenda, emphasizing the importance of diversifying into sectors such as the green economy, climate-smart agriculture, renewable energy, and expanding mining operations. He also commented on the geopolitical dynamics shaping Africa, underscoring the importance of balanced engagement between Western nations and emerging powers like China. The impending agreement with De Beers is expected to not only bolster Botswana’s diamond industry but also support its transition toward a more diversified and sustainable economic model.
