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

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

2. The Sales Discrepancy Botswana receives 50% of the rough stones, but it doesn't control 50% of the global supply chain. De Beers’ marketing arm (the infamous "Single Channel") dictates pricing. When the diamond market softens (as it has due to lab-grown diamonds and post-pandemic demand dips), Botswana carries half the production risk but has limited control over pricing strategy. Is Botswana Getting a Raw Deal From De Beers Diamonds

For years, this seemed equitable. But critics argue that the world has changed, and the contract has not kept pace. The core of the dispute lies not in the mining of the diamonds, but in their journey after they leave the ground. Botswana is the world's second-largest producer of diamonds,

Yet, the risk is immense. Without De Beers’ sales network, could Botswana manage the "price integrity" of its gems? If Botswana takes 50% of its rough and supplies go up while De Beers reduces marketing support, the value of rough diamonds could plummet, hurting everyone. Key facts and timeline

De Beers, now majority-owned by Anglo American, is resisting. They argue that the global diamond market is fragile. They claim that flooding a landlocked country with rough stones that cannot be sold for top dollar would destroy value. Privately, industry insiders admit that De Beers is terrified of a precedent. If Botswana takes control of its own supply, what stops Canada, South Africa, or Namibia from doing the same?

  • Botswana is the world's second-largest producer of diamonds, accounting for around 20% of global production.
  • Diamonds make up around 80% of Botswana's total exports.
  • De Beers has been operating in Botswana for over 50 years and has mined over 800 million carats of diamonds.
  • The Orapa mine, which is one of De Beers' largest mines in Botswana, produces over 3 million carats of diamonds per year.
  • The government of Botswana receives a royalty of 10% on the value of diamonds extracted from the mines.

Key facts and timeline

  • Debswana is jointly owned by the government of Botswana and De Beers (50/50). Debswana historically provided most of Botswana’s export earnings and a large share of government revenue.
  • In 2024–2026 the parties renegotiated a 10‑year sales/marketing agreement that gradually increases the share of Debswana production sold directly by Botswana’s state marketing arm (Okavango Diamond Company, ODC). ODC’s share rose from 25% to 30%, later to 40% and planned increases thereafter.
  • Botswana has pushed to capture more of the marketing margin and to develop direct sales channels (contracts, auctions, traceability initiatives such as Tracr).
  • Market pressures—growth of lab‑grown diamonds, tariffs affecting polishing hubs, falling rough prices—have sharply reduced diamond revenues and prompted Debswana and ODC to change sales models (more contract sales, fewer volatile auctions).

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