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

Under the previous long-term arrangement, Botswana’s state-owned Okavango Diamond Company (ODC) was entitled to just 25% of the rough diamonds produced by , the 50/50 joint venture between the government and De Beers. The new agreement fundamentally alters this balance:

De Beers moved its global rough diamond sorting and sales operations from London to Gaborone in 2013, anchoring Botswana as a global gemstone capital.

Today, the argument that Botswana is being shortchanged rests on three primary pillars: The Foundation of a Diamond Giant The deal

Is Botswana Getting a Raw Deal From De Beers Diamonds? The decades-long partnership between the Republic of Botswana and De Beers is often cited as the gold standard for public-private cooperation. However, as the global diamond market undergoes a seismic shift, many are asking if the "miracle of African development" is being short-changed. From Gaborone to the boardroom in London, the debate over whether Botswana is getting a raw deal has reached a fever pitch. The Foundation of a Diamond Giant

The deal negotiated over several years fundamentally changes the distribution of wealth between the two entities: upper-middle-income economy. However

Historically, the deal was highly lucrative in terms of cash generation but restrictive in terms of economic evolution. It kept Botswana dependent, structurally vulnerable, and confined to the bottom rung of the diamond value chain.

When diamonds were discovered in Botswana in 1967, just a year after independence from Britain, the nation was one of the poorest in the world. The subsequent formation of —a 50:50 joint venture between the government of Botswana and De Beers Group —transformed the country into an upper-middle-income economy. as global market dynamics shift

The diamond industry is in crisis. Lab-grown diamonds (LGDs) have collapsed the price of low-quality natural stones. A two-carat lab stone that cost $5,000 five years ago now sells for $500. While high-end natural diamonds remain resilient, the middle market is a bloodbath.

For decades, Botswana has been hailed as one of the few African nations to successfully bypass the notorious "resource curse". Discovered in the 1960s, just as the country gained independence, diamonds quickly transformed Botswana from one of the world's poorest countries into an upper-middle-income economy.

However, experts point out the inherent contradiction: Botswana is investing in its own sales infrastructure while simultaneously agreeing to continue funnelling the bulk of its stones through the De Beers system. Further complicating this ambition are reports suggesting that De Beers executives remain resistant to allowing the ODC to host its own independent "sights" for buyers, preferring to keep the supply chain under their supervision. For a country that aims to become a global diamond hub, this represents a significant roadblock.

Historically celebrated as the world's most successful public-private partnership, the alliance between the Republic of Botswana and De Beers Group has transformed Botswana from one of the poorest nations in 1966 into a stable, upper-middle-income economy. However, as global market dynamics shift, many are asking whether the nation is extracting maximum value from its natural wealth or bearing an unfair share of the industry's rising risks.