Botswana cemented a historic 10-year diamond agreement with mining giant De Beers this week, concluding seven years of high-stakes negotiations. The revised revenue-sharing model grants Africa’s top diamond producer escalating control over its mineral wealth amid global market instability.
Under the new terms, Botswana’s government gains:
- 30% of Debswana sales (2024-2028), up from 25%
- 40% share from 2029-2033
- Option for 50-50 split through 2039
In exchange, De Beers secured 25-year license extensions through 2054, ensuring continued operations in the world’s richest diamond fields. President Duma Boko emphasized the partnership’s significance at the signing:
We are people of durable relationships. This agreement builds sustainable value for Botswana.
The timing proves critical as diamond exports - comprising 80% of national trade - fell 52% year-over-year to $1.53B through September 2024. This economic vulnerability contributed to last October’s unprecedented election upset, unseating the ruling party after 58 years.
While Botswana dominates premium diamond production (including the 2,492-carat 2023 discovery), synthetic gem competition and shifting consumer preferences challenge traditional mining. The World Bank repeatedly warns that over-reliance on diamonds - accounting for 25% of GDP - requires urgent economic diversification.
Analysts suggest this renegotiated framework provides Botswana with:
- Short-term revenue stabilization
- Long-term capacity to develop secondary industries
- Enhanced bargaining power in future cycles
With Debswana sales projected to rebound post-2025, all eyes remain on whether this strategic partnership can transform Botswana’s resource wealth into lasting economic resilience.
