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

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.

In February 2025, after seven years of tense negotiations, the two parties finally signed a transformational new 10-year sales agreement and a 25-year extension of mining licenses. While officials celebrate this "groundbreaking" deal, the underlying economic pressures and shifting power dynamics suggest a more complex reality. The Evolution of the Deal: From 25% to 50% However, critics argue that the economic benefits of

The coming months are critical. If Botswana secures a deal that gives it control over independent sales and a higher percentage of rough stones, it will set a new precedent for global resource nationalism. If it caves, the "gold standard" might start to look a little tarnished. In February 2025, after seven years of tense

For now, the diamonds keep coming out of the earth. But the shine has worn off the partnership. Whether Botswana leaves the bargaining table with a fairer share—or walks away into an uncertain future—will determine if this "perfect marriage" ends in a very expensive divorce. If Botswana secures a deal that gives it

Under the previous long-term agreements, De Beers held the lion's share of the "marketing" power. While Botswana owned half the mines, the majority of the rough stones were sold through De Beers' global distribution network. The New Deal: Progress or Posturing?

Botswana receives 50% of the rough stones, but it doesn't control 50% of the global supply chain. De Beers’ marketing arm (the infamous "Single Channel") dictates pricing. When the diamond market softens (as it has due to lab-grown diamonds and post-pandemic demand dips), Botswana carries half the production risk but has limited control over pricing strategy.