BOTSWANA’S government has officially signed a long-delayed diamond sales agreement with Anglo American’s De Beers, securing a deal that is expected to boost the economy and create jobs.
The agreement, which had been under negotiation since 2018, was provisionally agreed upon last year under Botswana’s previous leadership. However, it was only finalised on Tuesday, following new President Duma Boko’s push to prioritise the deal, according to Reuters.
Boosting Botswana’s diamond trade
Diamonds play a critical role in Botswana’s economy, making up a significant share of exports. The new deal increases Botswana’s share of rough diamonds from Debswana, its joint venture with De Beers, from 25 percent to 50 percent over the next decade.
Additionally, Debswana’s mining licence has been extended for 25 years until 2054, ensuring long-term collaboration between Botswana and the diamond giant.
At the signing ceremony in Gaborone, President Duma Boko emphasised the agreement’s economic and job creation potential, stating: ‘We have secured a good deal, and we trust it will carry us into the future. This agreement is about the people of Botswana and the jobs it will create.’
Navigating global diamond market challenges
Botswana’s economy contracted last year due to a prolonged downturn in the global diamond market, which has struggled with declining demand, an oversupply of rough diamonds, and the rise of lab-grown alternatives.
However, the government remains optimistic, expecting an economic rebound in 2025 as global diamond demand stabilises and other sectors improve.
The finalisation of this agreement marks a significant step for Botswana’s diamond industry, ensuring the country secures a larger share of its natural resources while strengthening its economic future.
