This content was first published on IGR – Italian Gemological Review no. 18 in 2024. The information provided here is therefore current as of the original publication date.
While diamonds have transformed Botswana into an upper-middle-income country with a well-developed infrastructure, the country is currently one of the most socially unequal in the world, according to the United Nations. Perhaps in an attempt to sidestep these issues, local politicians have not hesitated to use strong language in campaigns to garner support to show their followers that they are negotiating on equal terms with De Beers, the mining giant with which the country is partnered and which contributes 25% of Botswana’s GDP.
President Mokgweetsi Masisi publicly criticized the previous deal. «We must refuse to be enslaved», he told a community meeting in a rural village in May, insisting to obtain for Botswana a fairer share of mined diamonds as well as other complementary investments to diversify the diamond industry. But despite the fiery populist rhetoric and bold statements, cooperation with De Beers remains critical for the government as it grapples with the challenge of sustaining the country’s economic development. As a result, the two parties have agreed to extend their long-standing diamond mining partnership, averting a rupture that seemed imminent in the months leading up to the signing.
The agreement brings relief to De Beers while advancing Botswana’s interests. Immediate adjustments will increase the country’s share from 25% to 30%, with plans to increase it to 50% over the next ten years. De Beers has also committed to invest up to $825 million in Botswana’s economy in the same period of time and to establish a diamond trading academy. In addition, the agreement aims to create tens of thousands of new local jobs, with a focus on expanding jewelry manufacturing capacity. The agreement extends the sales contract to 2033 and De Beers’ mining license to 2054, providing long-term stability.
Gem News published on IGR – Italian Gemological Review #18, Spring 2024
