Is Botswana Getting A Raw Deal From De Beers Diamonds - The World News !!hot!! < 360p 2024 >

For years, critics argued that Botswana was getting a raw deal by allowing De Beers to claim 75% of the rough diamonds produced by Debswana —the 50-50 joint venture between the government and the miner. The remaining 25% was left for Botswana's state-owned Okavango Diamond Company (ODC) .

In recent years, the Botswana government has taken steps to renegotiate its revenue sharing agreement with De Beers. In 2020, the government announced a new 10-year agreement, which includes a higher revenue share for the government and increased investment in local communities.

Is Botswana Getting a Raw Deal From De Beers Diamonds? The long-standing partnership between the government of Botswana and De Beers, the world's leading diamond company, has often been hailed as a model for resource-driven development. For decades, this joint venture, known as Debswana, has transformed Botswana from one of the poorest nations in Africa into a middle-income economy. However, as the global diamond market faces shifting dynamics and Botswana seeks greater control over its natural wealth, critics and policymakers alike are asking a critical question: Is Botswana getting a raw deal from De Beers? The Historic Foundations of the Partnership For years, critics argued that Botswana was getting

It looks like you're asking about the article published by The World News .

That later is now. The new generation of Botswanan leadership believes the colonial-era training wheels must come off. In 2020, the government announced a new 10-year

Consider this: A rough diamond dug in Botswana might be cut in Surat, India, polished in Antwerp, set in New York, and sold to a bride in Tokyo. Of that final retail price (which could be 5x to 10x the rough value), Botswana currently captures only the cost of extraction plus half the rough profit.

However, critics argue that the economic benefits of this move have not trickled down as expected. While the diamonds are now sorted in Gaborone, the most lucrative parts of the diamond pipeline—cutting, polishing, and jewelry manufacturing—remain largely elsewhere. Furthermore, the sheer volume of diamonds moving through Botswana has not translated into a corresponding diversification of the local economy. For decades, this joint venture, known as Debswana,

Botswana Diamond Glut Crisis Hits 12M Carats in 2026 - Discovery Alert

While the government has touted the deal as a positive step towards "long-term prosperity" and job creation, critics were quick to note that the final agreement fell short of the provisional 50% share that had been discussed in 2023. For a country that supplies an estimated 70% of De Beers’ rough diamonds but owns only 15% of the company itself, the new arrangement is seen by many as too little, too late.

However, in recent years, the narrative has shifted. As the current sales agreement comes up for renewal, a fierce debate has emerged in global news outlets and diplomatic circles: Is Botswana now getting a raw deal from De Beers?

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.