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

Historically, and De Beers have shared a 50-year partnership described as the world's most successful public-private venture. However, recent years saw growing tension as Botswana’s leadership argued the country was getting a "raw deal" by being restricted primarily to mining rather than the more profitable cutting, polishing, and retailing sectors. 💎 The New "Fair" Deal (2025)

To address these concerns, a landmark agreement was formally signed in February 2025 and reaffirmed in early 2026. The new terms represent a significant shift in power and profit:

Botswana is aggressively pursuing a controlling stake in De Beers, aiming to shift from a historical partnership model to total ownership as part of a strategy to maximize control over its diamond resources and address economic pressures. While recent sales agreements increased the state-owned, Okavango Diamond Company's share, the government is currently seeking financing from Oman to bid for a majority stake amid a significant global diamond market downturn. Read the full details on the, Mining.com

Botswana's diamond stockpile swells as gem price slump persists - Reuters

Diamonds normally contribute around one-third of Botswana's national revenues and three-quarters of its foreign exchange receipts.

Botswana’s president courts Oman amid De Beers’ control battle

It looks like you're asking about the article "Is Botswana Getting a Raw Deal From De Beers Diamonds" published by The World News.

I can't reproduce the full copyrighted text of that article here, but I can summarize the key arguments typically made in such analyses, as well as the general debate around Botswana's diamond deal with De Beers. Historically, and De Beers have shared a 50-year

What Does a "Raw Deal" Look Like?

If Botswana were getting a truly raw deal, we would expect to see underfunded hospitals and crumbling roads. Instead, we see modern infrastructure and universal education. The revenue from diamonds funds 50% of Botswana’s budget.

But the "raw deal" isn't about poverty—it's about lost opportunity.

Consider this: A rough diamond dug in Botswana might be cut in Surat, India, polished in Antwerp, set in New York, and sold to a bride in Tokyo. Of that final retail price (which could be 5x to 10x the rough value), Botswana currently captures only the cost of extraction plus half the rough profit.

President Masisi has drawn a hard line in the sand. He isn't asking for a revolution; he is asking for evolution. He wants:

• A larger share of rough diamonds (up to 60-70%).
• The right to sell independently to international buyers.
• De Beers to relocate its global sorting and sales operations to Gaborone.

Arguments that Botswana is benefiting / not being exploited

1. Strong public revenues and social investment
   • Diamond income has enabled infrastructure, education, health services and a sovereign wealth approach that transformed Botswana’s economy compared with many resource‑rich peers.
2. Improved terms in recent renegotiations
   • The 2024–25 contract increased ODC’s allocation and gave Botswana a larger role in sales and a share of marketing costs, signaling greater bargaining power.
3. Strategic use of proceeds and diversification efforts
   • Botswana has built fiscal buffers and is investing in tourism, conservation, skills and attempts to diversify its economy and downstream diamond capabilities.
4. Active policy response to market change
   • ODC’s move to contract sales, traceability initiatives, and greater direct marketing aim to reduce dependence on De Beers’ sales model and capture more value.

A Rough Cut? Analyzing Whether Botswana Is Getting a Raw Deal from De Beers

For decades, the relationship between the Republic of Botswana and the diamond giant De Beers has been hailed as a quintessential model of cooperation between a developing nation and a multinational corporation. Often described as a "marriage," this partnership transformed Botswana from one of the poorest nations in the world at independence in 1966 into an upper-middle-income economy.

However, in recent years, the narrative has shifted. As the current sales agreement comes up for renewal, a fierce debate has emerged in global news outlets and diplomatic circles: Is Botswana now getting a raw deal from De Beers?

The Value Chain Disparity

The central argument for Botswana getting a "raw deal" revolves around value addition. A larger share of rough diamonds (up to 60-70%)

Historically, De Beers mined the rough diamonds in Botswana and shipped them to London, where they were sorted, aggregated, and sold to manufacturers. The high-value activities—sorting, cutting, polishing, and retail—happened elsewhere, keeping the bulk of the economic profit outside Botswana’s borders.

While De Beers moved its "sights" (sales events) to Gaborone in 2013, a symbolic victory for the nation, critics argue this was a logistical shift rather than a structural economic transformation. Botswana still sells the rough stones. The lucrative downstream industries—where a rough stone becomes a polished jewel sold in a boutique in New York or Hong Kong—remain largely out of reach for the Batswana economy.

The government is now demanding a larger share of the rough diamonds to be processed locally, aiming to turn Botswana into a global diamond hub, not just a supplier of raw materials.

The Shadow of 1967

To gauge if Botswana is getting a raw deal, one must look at the historical trajectory. In 1967, when the Orapa pipe was found, Botswana had 12 kilometers of paved road. Sir Seretse Khama, the founding president, made a prescient deal with Harry Oppenheimer. He accepted a lower immediate royalty in exchange for the "reserved right" to buy into the asset later.

That later is now. The new generation of Botswanan leadership believes the colonial-era training wheels must come off.

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.

The 50/50 Illusion

To understand the current friction, one must look at the current sales agreement, set to expire soon. The prevailing myth is that Botswana (through its state-owned entity, Okavango Diamond Company) and De Beers are equal partners—a 50/50 joint venture known as Debswana. Arguments that Botswana is benefiting / not being exploited

On paper, that is true. Debswana mines the diamonds. But here lies the rub: De Beers controls the sight. For decades, virtually all of Botswana’s rough diamonds were sold exclusively through De Beers’ London-based sales arm. Botswana got 50% of the mining profits, but De Beers captured the margin on sorting, valuing, and global distribution.

The result is a lopsided dependency. Botswana’s economy is a diamond monolith—roughly 30% of its GDP, 50% of government revenue, and 80% of its exports are tied to these stones. When De Beers decides to flush the pipeline or lower prices, Botswana bleeds.

The Verdict

Is Botswana getting a raw deal? In the strictest financial sense regarding value addition and downstream integration, the answer has historically been yes. The nation has been a passive supplier of raw wealth rather than an active participant in the luxury market.

However, the definition of a "raw deal" is changing. Botswana is no longer the fledgling nation of 1966; it is a sophisticated economic player demanding its rightful share of the value chain. The current negotiations are not just about royalty percentages; they are about the soul of the industry.

If De Beers accedes to Botswana’s demands for more local processing and greater supply control, the "partnership" will finally evolve into equality. If they resist, Botswana may well decide that the "raw deal" is no longer a deal at all.

Is Botswana Getting a Raw Deal From De Beers Diamonds? For over half a century, the partnership between Botswana and De Beers has been hailed as one of the most successful public-private collaborations in the world. However, as the global diamond market undergoes seismic shifts, a critical question has emerged: Is Botswana getting a raw deal?

In February 2025, after seven years of tense negotiations, the two parties finally signed a transformational new 10-year sales agreement and a 25-year extension of mining licenses. While officials celebrate this "groundbreaking" deal, the underlying economic pressures and shifting power dynamics suggest a more complex reality. The Evolution of the Deal: From 25% to 50%

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 Debswana, the 50/50 joint venture between the government and De Beers. The new agreement fundamentally alters this balance: