Botswana’s newly elected President, Duma Boko, has announced the finalization of a diamond extraction and sales agreement with global mining giant De Beers. The deal, concluded just before midnight on January 24, is expected to provide long-term economic stability for the southern African nation, whose economy heavily depends on diamond revenues.
In an exclusive interview on Tuesday, Boko confirmed that the agreement’s details would be disclosed soon. Botswana is the world’s largest producer of rough diamonds by value, with most of its production coming from Debswana, a joint venture between De Beers—a subsidiary of Anglo American Plc—and the Botswana government.
A Critical Deal for Botswana’s Future
Boko made the announcement while attending an energy conference in Dar es Salaam, Tanzania. His remarks followed statements at the World Economic Forum in Davos, where he had indicated that negotiations were nearing completion. The finalized deal strengthens Botswana’s longstanding partnership with De Beers, ensuring continued investment in the country’s lucrative diamond sector.
During his election campaign, Boko had criticized his predecessor, Mokgweetsi Masisi, for what he described as mishandling the negotiations. He argued that Masisi’s approach had strained relations with De Beers, leading the company to consider ending its decades-long alliance with Botswana. Boko, who led the Umbrella for Democratic Change coalition to victory over the Botswana Democratic Party—the country’s ruling party since independence in 1966—made renegotiating the deal a key priority upon taking office.
According to Boko, the finalized agreement does not introduce major changes but refines the terms set by the previous administration. Under a provisional 10-year accord announced in July, Botswana’s state-owned diamond trader was set to receive 30% of Debswana’s production, while the government secured 10 billion pula ($720 million) in development funding.
De Beers has yet to issue an official statement on the agreement.
Botswana’s Economic Success and New Challenges
Since gaining independence from Britain in 1966, Botswana has transformed itself from an arid, underdeveloped nation into Africa’s richest country per capita, largely due to its effective management of diamond revenues. The sector has driven investments in infrastructure, healthcare, and education, making it the backbone of Botswana’s economic success.
However, the country now faces significant challenges, including a prolonged downturn in the global diamond market and growing competition from lab-grown gems. Boko acknowledged these concerns but remained confident that the new agreement would restore investor confidence and support economic growth.
To maintain its competitive edge, Botswana plans to emphasize the authenticity and ethical sourcing of its diamonds, branding them as premium natural gems. Boko dismissed synthetic alternatives, stating, “We acknowledge the challenge posed by lab-grown stones, but I refuse to call them diamonds. Diamonds are natural.”
The government aims to market Botswana’s diamonds with a focus on their provenance and the role they play in national development, distinguishing them from diamonds mined in conflict zones elsewhere in Africa.
As Botswana navigates shifting market dynamics, the finalized deal with De Beers is expected to reinforce the country’s position as a leading player in the global diamond industry while ensuring sustainable economic growth.