BOTSWANA’S newly elected President, Duma Boko, expressed confidence that a long-awaited diamond sales agreement with mining giant De Beers could be finalised as early as Friday. Speaking at a Reuters NEXT Newsmaker event during the World Economic Forum in Davos, Switzerland, Boko said his government and De Beers had agreed on most aspects of the pact, with only minor details remaining.
‘I’m hoping it is tomorrow. I mean it literally,’ Boko told Reuters, signalling optimism about concluding negotiations that began under his predecessor.
The agreement, first announced in 2023, would gradually increase Botswana’s share of diamonds from the Debswana joint venture with De Beers to 50 percent over the next decade. Currently, De Beers purchases 75 percent of Debswana’s output. Boko also confirmed ongoing discussions to raise Botswana’s 15 percent ownership stake in De Beers, stating that talks were progressing well.
A new era for Botswana
Boko, a 55-year-old lawyer, took office in November after a historic election victory that ended nearly six decades of rule by the Botswana Democratic Party (BDP). His coalition campaigned on promises to address mounting economic challenges, including youth unemployment and reliance on diamond exports.
Botswana, the world’s leading diamond producer by value, has long used its mineral wealth to invest in health, education, and social welfare, resulting in a GDP per capita of $7,250 in 2023, far above the sub-Saharan African average of $4,800, according to the World Bank. However, economic grievances contributed to the BDP’s election loss, as citizens demanded broader economic opportunities and reforms.
‘The so-called liberation parties did the best they could,’ Boko said. ‘It seems to me that many of them have now outlived their welcome and their usefulness.’
Economic diversification takes centre stage
Despite Botswana’s success in leveraging its diamond wealth, Boko stressed the need to reduce dependence on a single commodity. He outlined plans to diversify the economy through green initiatives, renewable energy, climate-smart agriculture, and expanded mining activities.
‘We are looking to power the economy of Botswana. We’re looking to diversify it,’ Boko said, highlighting the government’s focus on sustainable development and resilience against market downturns.
Botswana’s economy faced significant challenges in 2023, with a global diamond market slowdown causing a likely contraction. However, the finance ministry predicts a rebound, forecasting GDP growth of 3 percent to 4 percent in 2024, driven by improved diamond demand.
Navigating global challenges
Boko’s leadership comes at a time of shifting global dynamics. He acknowledged the potential influence of major powers like China and the United States in Africa’s affairs. Commenting on the return of Donald Trump to the US presidency, Boko suggested that a policy shift towards American self-interest could create opportunities for Africa to strengthen ties with various global partners.
‘[The] West has every reason to play its part in Africa, because if it doesn’t, there are others who will want to play some part. We have China in the wings, and it’s seeking… to exert influence on Africa,’ he noted.
A pivotal year ahead
As Botswana enters a new chapter under Boko’s leadership, finalising the De Beers deal will be a critical first step in securing the country’s economic future. With ambitious plans to diversify and modernise, Botswana’s government aims to balance its diamond-driven success with a more sustainable and inclusive growth model.
