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

: Some investigations have suggested "revenue leakage" where diamond values "miraculously increase" once they cross Botswana's borders, potentially reducing the country's tax take. The Improved 2025 Deal

While this sounds like progress, it fell short of earlier expectations. The provisional "Heads of Terms" agreed to in 2023 suggested ODC’s allocation would hit 50% far sooner. The final 2025 deal sets a more conservative target. Furthermore, in exchange for a modestly increased share of the stones, Botswana agreed to lock in De Beers as the operator and primary marketer for the next three decades.

Looking back at the trajectory of the last half-century, it is difficult to classify Botswana's relationship with De Beers as a purely "raw deal." De Beers and Botswana built a partnership that modernized an entire nation, built infrastructure, and funded robust healthcare and education systems.

In exchange for the improved sales terms, De Beers was granted a 25-year extension on its mining licenses in Botswana, securing operations through to 2054. : Some investigations have suggested "revenue leakage" where

The mining agreement between De Beers and the government of Botswana has been the subject of much debate. The agreement, which was signed in 1971, gives De Beers the rights to extract diamonds from the Orapa mine for a period of 25 years. The agreement was later extended to cover the Jwaneng mine, and in 2004, the government of Botswana and De Beers signed a new agreement that extended the life of the Orapa mine until 2035.

[ Mining in Botswana ] ──> [ Aggregation/Rough Sale ] ──> [ Cutting & Polishing ] ──> [ Retail Jewelry ] (High Volume / Taxed) (De Beers Controlled) (Low Local Margin) (Massive Margins)

The debate over revenue sharing has been ongoing for several years. The government of Botswana has argued that it should receive a higher share of the revenue generated by the diamond industry, while De Beers has argued that its investment in the industry justifies its share of the revenue. The final 2025 deal sets a more conservative target

The current renegotiation is arguably the most significant in the partnership's 54-year history. Botswana’s President, Mokgweetsi Masisi, has taken a hardline stance, suggesting the government could walk away if terms do not improve.

If you'd like to explore how this impacts the global diamond industry, tell me:

. But as the global diamond market shifts, the question of whether Botswana is getting its fair share has moved from boardroom whispers to front-page news. The Changing Power Balance In exchange for the improved sales terms, De

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

The central argument for Botswana getting a "raw deal" revolves around value addition.

The stress on the industry was laid bare when a major ad-hoc diamond auction in Botswana failed to secure buyers willing to pay the high reserve prices, underscoring the severe oversupply and depressed price environment. The Bottom Line: Did Botswana Get a Raw Deal?

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