Is Botswana Getting A Raw Deal From De Beers Diamonds - The World News //free\\ Jun 2026

The core of the "raw deal" argument lies in a fundamental absurdity. Botswana's state-owned Okavango Diamond Company (ODC) now receives an allocation of rough stones, which it intends to sell directly to buyers. In November 2025, ODC began transitioning to a contract sales model to diversify away from De Beers' control. The ambition is to eventually sell 50% of its allocation through these direct channels. This is a crucial step toward economic sovereignty.

After years of contentious negotiations and public criticism from former President Mokgweetsi Masisi, a formal 10-year sales agreement was signed in February 2025. Is Botswana Getting a Raw Deal From De Beers Diamonds?

Is Botswana getting a raw deal? The answer is nuanced. Compared to other mineral-rich nations in Africa, Botswana has secured an exceptionally favorable arrangement. However, in the context of modern ESG standards and the rise of synthetic competitors, the "old" way of doing business is no longer enough. The core of the "raw deal" argument lies

However, this ambition is fraught with immense risk, and not everyone believes it is a wise move.

However, beneath the surface of fiscal stability lay an asymmetric reality: Botswana, De Beers renew diamond deal | LinkedIn The ambition is to eventually sell 50% of

Consider the numbers. In 2023, despite a slowdown, Debswana produced approximately 25 million carats. While Botswana’s treasury collected billions in taxes and dividends, the downstream revenue—the 200% markup that turns a rough stone into a polished engagement ring—almost entirely flowed to factories in India, China, and the diamond exchanges of New York and Tel Aviv.

The vast majority of cutting, polishing, and jewelry manufacturing historically took place overseas. Botswana missed out on the lucrative downstream stages of the supply chain that create the most jobs and economic value. Is Botswana Getting a Raw Deal From De Beers Diamonds

Botswana is getting a raw deal not because of malice, but because the 50-year partnership was built for an era of stable growth and rising demand. That era is over. The country now faces the impossible task of trying to secure prosperity from a resource that is no longer as valuable, through a company that is losing money, all while trying to buy that same company for a price it can barely afford. The partnership that built Botswana into a success story may now be the very thing holding it back from its next stage of development.