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

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.

However, the definition of a "raw deal" is changing. Botswana is no longer the fledgling nation of 1966; it is a sophisticated economic player demanding its rightful share of the value chain. The current negotiations are not just about royalty percentages; they are about the soul of the industry.

Botswana has finalized a 10-year sales agreement and 25-year mining license extension with De Beers, boosting its production share to 30%—set to rise to 50%—and securing over $750 million in development funding . The landmark deal strengthens local beneficiation and positions Botswana to potentially take a controlling stake in De Beers as owner Anglo American divests . Read the full details of the agreement on Reuters . Is Botswana Getting a Raw Deal From De Beers Diamonds?

But beneath the polish of that narrative, a seismic shift is occurring. As the global diamond market fragments, synthetic stones flood the market, and De Beers’ grip on the industry loosens, a burning question is echoing from the Kalahari Desert to the corridors of the London Stock Exchange:

This public link is valid for 7 days and shares a thread, including any personal information you added. This link or copies made by others cannot be deleted. If you share with third parties, their policies apply. Can’t copy the link right now. Try again later.

Related search suggestions (terms you can try next):

The raw deal is not just about money. It is about control. For 60 years, a nation blessed with the world’s hardest gem has been treated like a soft touch. As President Masisi told Parliament last month: "We are not asking for a favor. We are taking what is ours."

Historically, Debswana sold 75% of its output to De Beers, with 25% allocated to the state-owned Okavango Diamond Company (ODC). While this created massive revenue, Botswana’s government has long felt that De Beers maintained a dominant stake in sorting, valuation, and marketing, limiting Botswana’s control over its own resources. The 2025/2026 Turning Point: A Better Deal?

While Botswana eventually negotiated a carve-out for its state-owned company, , ODC was initially only allocated 10% of Debswana’s production, which later crept up to 25%. Critics argue this system effectively starved Botswana’s domestic cutting and polishing industries, as local factories struggled to secure direct, consistent access to the exact types of rough diamonds they needed to remain profitable. 2. The Transfer Pricing and Value Gap

However, as the nation grew in political maturity and economic capability, questions began to arise regarding the equity of the arrangement. Was Botswana getting a raw deal? The Argument for a "Raw Deal"

Technical details of the Share public link