Botswana’s New Leadership Reconsiders Diamond Deal Amid Concerns Over Negotiations with De Beers

Botswana’s new government is reassessing a landmark diamond agreement forged last year between outgoing President Mokgweetsi Masisi and De Beers, the global diamond giant. Under the deal, Botswana’s share of diamonds from the Debswana joint venture was set to increase gradually, reaching a 50% stake over the next decade. However, despite the promised economic benefits, the agreement remains unsigned, casting uncertainty over Botswana’s partnership with De Beers, one of the country’s most critical economic pillars.

The recently elected President, Duma Boko, has openly voiced his concerns regarding the initial handling of the negotiations. Speaking in a televised statement, Boko warned that De Beers had considered a complete withdrawal from Botswana, a potential loss he described as “very dangerous” for the nation. “The relationship with De Beers could have been damaged by the way the negotiations were handled,” he stated. “The first thing that needs to be done is to engage the other party.”

Boko’s administration is placing a renewed emphasis on maintaining a stable relationship with De Beers, with the new leader advocating for a balanced approach in the negotiation process. “A proper negotiation involves compromise, where you get a bit of what you wanted, the other person gets a bit,” he said, stressing the need for a “durable, sustainable agreement.” Boko has suggested he is open to revisiting the terms to address any concerns raised by De Beers and ensure the partnership remains mutually beneficial.

For decades, Botswana has maintained a fruitful partnership with De Beers, with the joint venture Debswana being one of the world’s largest diamond producers. The sector contributes nearly a third of Botswana’s GDP, making De Beers’ involvement critical to the country’s economic stability. However, the longstanding arrangement now faces pressure amid significant shifts in the global diamond industry.

Anglo American, De Beers’ parent company, is currently exploring divestment options as part of a broader restructuring initiative, raising questions about the future ownership structure of De Beers. In line with these changes, the previous Botswana administration had expressed interest in increasing the country’s stake in De Beers from its current 15% holding, although the specifics remain undetermined.

In response to these developments, a spokesperson for De Beers assured Western media of the company’s commitment to collaborating with Botswana’s government. “De Beers reaffirms its dedication to working collaboratively towards shared objectives,” the spokesperson stated.

As Botswana’s new government steps in, industry analysts are closely watching how these negotiations unfold. The country’s reliance on diamond revenue makes this an especially sensitive juncture for Botswana’s economy, with many in the nation eager to see a continuation of the longstanding partnership.