The claim that is getting a "raw deal" from De Beers has been a central theme in recent high-stakes negotiations, driven by the country's desire to capture more value from its natural resources
. Historically, the partnership transformed Botswana from one of the world's poorest nations in 1966 into an upper-middle-income country today Key Arguments for a "Raw Deal" Low Share of Sales : For years, Botswana's state-owned Okavango Diamond Company (ODC)
only received 25% of the diamonds mined by their joint venture, , while De Beers took 75%. Missing Downstream Value
: Most rough diamonds were historically shipped abroad for cutting and polishing in hubs like India, depriving Botswana of higher-value manufacturing and retail jobs. Alleged Profit Shifting
: Some investigations have suggested "revenue leakage" where diamond values "miraculously increase" once they cross Botswana's borders, potentially reducing the country's tax take. The Improved 2025 Deal
After years of contentious negotiations and public criticism from former President Mokgweetsi Masisi, a formal 10-year sales agreement was signed in February 2025. Is Botswana Getting a Raw Deal From De Beers Diamonds?
Is Botswana getting a raw deal? Not compared to most resource-rich nations in Africa, which often see zero benefit from their minerals. Compared to the theoretical ideal—where a nation owns 100% of its resources and the downstream value chain—yes, Botswana is leaving billions on the table.
The coming months are critical. If Botswana secures a deal that gives it control over independent sales and a higher percentage of rough stones, it will set a new precedent for global resource nationalism. If it caves, the "gold standard" might start to look a little tarnished.
For now, Gaborone holds the cards. The question is whether De Beers is willing to pay the price to keep them.
What do you think? Should resource-rich nations control their own diamond destiny? Join the conversation in the comments below.
Follow The World News for ongoing coverage of the Africa trade corridors and global commodity markets.
As of April 2026, Botswana has shifted away from a "raw deal" in its diamond partnership with De Beers by securing a 10-year agreement that raises the state’s share of rough diamonds, transitioning toward a 50/50 equity split by 2035. While this February 2025 deal increases local control, Botswana currently faces economic challenges, including a global supply glut, market volatility, and a substantial diamond inventory. For more information, visit Reuters.
Botswana Diamond Glut Crisis Hits 12M Carats in 2026 - Discovery Alert
Is Botswana Getting a Raw Deal From De Beers? For decades, the partnership between
and De Beers was hailed as the ultimate success story in African mining
. But as the global diamond market shifts, the question of whether Botswana is getting its fair share has moved from boardroom whispers to front-page news. The Changing Power Balance
Historically, De Beers controlled the lion's share of production, but the tide is turning. Under the new 10-year sales agreement signed in February 2025 , Botswana has secured a much larger "slice of the pie": Production Share: Okavango Diamond Company (ODC) —Botswana’s state-owned seller—now starts with Debswana’s production, a significant jump from the previous 25%. Future Growth: This share is scheduled to climb to by 2033, effectively giving Botswana equal selling power. Development Funding: De Beers has committed up to 10 billion Pula ($712 million)
to a "Diamonds for Development" fund to help diversify Botswana’s economy. Why "Raw Deal" Talk Persists
Despite these gains, critics and local leaders argue the nation remains vulnerable:
While the 2025 agreement improved Botswana's diamond sales share to 50% by 2035, the government argues the 15% stake in De Beers remains unbalanced given its 70% supply share. President Duma Boko is now seeking a majority stake in De Beers to secure control over global pricing and branding, with a bid deadline set for April 16, 2026. For more details, visit mining.com Anglo American
Is Botswana Getting a Raw Deal From De Beers Diamonds?
GABORONE, Botswana – For decades, the sparkling relationship between the arid nation of Botswana and the diamond giant De Beers has been hailed as the "perfect marriage." Diamonds built Botswana’s middle class, funded its free education, and transformed it from one of the poorest countries on Earth into Africa’s most stable, upper-middle-income economy.
But as the world turns away from mined gems toward lab-grown stones, whispers in the Kalahari are growing into a roar. The question on every citizen’s mind: Is Botswana getting a raw deal?
At the heart of the tension is Debswana—a 50/50 joint venture between the government and De Beers. For 50 years, the deal was simple: De Beers handled global marketing and sales; Botswana collected roughly 80% of the revenue from domestic production. But last year, a new mining code and a standoff over a new sales agreement exposed deep fractures.
"The balance has shifted," says Thabo Mokoena, an economist at the University of Botswana. "De Beers still controls the sightholder list—the exclusive buyers. Botswana provides the rocks, but London decides who buys them. In an era where diamond prices are crashing, that control means everything."
The conflict came to a head this spring. Botswana’s President Mokgweetsi Masisi demanded that state-owned Okavango Diamond Company be allowed to sell 50% of the local production independently, bypassing De Beers’ London sorting room. De Beers countered with an offer of 30%.
"We are not a quarry," President Masisi said in a fiery address last month. "We are not just diggers. We want the full value of our resources, including cutting, polishing, and selling. The current deal treats us like a junior partner in our own house."
De Beers argues the partnership remains "the most successful resource-based partnership in history." A spokesperson in London told The World News: "Botswana has received over $6 billion in dividends and royalties. We have built hospitals, roads, and a diamond hub in Gaborone. The idea of a raw deal is simply not factual." The claim that is getting a "raw deal"
But on the dusty streets of Jwaneng, home to the richest diamond mine in the world by value, the sentiment is different. Miners complain that while executives fly in private jets, local polishers earn less than $200 a month. Meanwhile, De Beers reported $6 billion in rough diamond sales last year—but Botswana’s share of downstream profits remains negligible.
The ticking clock is synthetic diamonds. Lab-grown stones now cost 80% less than mined ones, decimating prices. "De Beers is trying to lock Botswana into a long-term deal before the bottom falls out of the natural diamond market," warns diamond analyst Clara van der Merwe. "Botswana is right to ask for more now. In five years, De Beers may have nothing left to offer."
As negotiations drag on, President Masisi has played a high-stakes card: threatening to walk away. He has publicly stated that if De Beers won't yield, Botswana will launch its own state-owned diamond trading house.
For now, the diamonds keep coming out of the earth. But the shine has worn off the partnership. Whether Botswana leaves the bargaining table with a fairer share—or walks away into an uncertain future—will determine if this "perfect marriage" ends in a very expensive divorce.
Reporting from Gaborone, The World News.
Is Botswana Getting a Raw Deal From De Beers Diamonds?
Botswana, a small landlocked country in Southern Africa, has been hailed as a success story in the diamond industry. The country's rich diamond deposits have made it one of the world's leading producers of the precious gemstone. However, recent developments have raised questions about whether Botswana is getting a fair deal from De Beers, the mining giant that has dominated the country's diamond industry for decades.
A History of De Beers in Botswana
De Beers, founded by Cecil Rhodes in 1888, has been a major player in the diamond industry for over a century. The company's dominance in the industry has been well-documented, and its influence extends far beyond Botswana. In the 1960s, De Beers began exploring for diamonds in Botswana, and in 1971, the company discovered the Orapa diamond mine, which would become one of the largest diamond mines in the world.
Today, De Beers is the largest diamond mining company in Botswana, with a portfolio of mines that include Orapa, Jwaneng, and Venetia. The company's operations in Botswana account for a significant portion of the country's diamond production, and it is estimated that diamonds make up around 80% of Botswana's total exports.
The Mining Agreement
The mining agreement between De Beers and the government of Botswana has been the subject of much debate. The agreement, which was signed in 1971, gives De Beers the rights to extract diamonds from the Orapa mine for a period of 25 years. The agreement was later extended to cover the Jwaneng mine, and in 2004, the government of Botswana and De Beers signed a new agreement that extended the life of the Orapa mine until 2035.
Under the terms of the agreement, De Beers pays the government of Botswana a royalty of 10% on the value of diamonds extracted from the mines. However, critics argue that this royalty rate is too low, and that the government of Botswana is not getting a fair share of the revenue generated by the diamond industry.
The Debate Over Revenue Sharing
The debate over revenue sharing has been ongoing for several years. The government of Botswana has argued that it should receive a higher share of the revenue generated by the diamond industry, while De Beers has argued that its investment in the industry justifies its share of the revenue.
In 2019, the government of Botswana announced plans to increase its share of the revenue from diamond mining. The government proposed a new royalty rate of 15% on the value of diamonds extracted from the mines, and also announced plans to acquire a 24% stake in the Debswana Mining Company, which is the joint venture between De Beers and the government of Botswana.
The Impact on Botswana's Economy
The diamond industry has had a significant impact on Botswana's economy. The industry has created thousands of jobs, both directly and indirectly, and has generated significant revenue for the government. However, critics argue that the industry has also had a negative impact on the country's economy.
One of the main criticisms is that the diamond industry has made Botswana too dependent on a single commodity. This has made the country vulnerable to fluctuations in the global diamond market, and has limited the country's ability to diversify its economy.
The Human Cost
The diamond industry has also had a significant impact on the people of Botswana. The industry has created jobs and generated revenue, but it has also been criticized for its treatment of workers and its impact on local communities.
In 2018, a report by the human rights group, Global Witness, accused De Beers of failing to provide adequate compensation to communities affected by its mining operations. The report also accused the company of using security forces to intimidate and harass local communities.
Conclusion
The debate over whether Botswana is getting a raw deal from De Beers diamonds is complex and multifaceted. While the diamond industry has generated significant revenue for the government and created thousands of jobs, critics argue that the country is not getting a fair share of the revenue.
The government of Botswana has taken steps to increase its share of the revenue, but more needs to be done to ensure that the country benefits from its rich diamond deposits. The government must also prioritize the needs of local communities and ensure that the industry is operated in a responsible and sustainable manner.
As the world continues to demand more transparency and accountability from mining companies, De Beers and the government of Botswana must work together to ensure that the diamond industry benefits both the company and the country.
The Way Forward
So, what can be done to ensure that Botswana gets a fair deal from De Beers diamonds? Here are a few suggestions:
By taking these steps, Botswana can ensure that it gets a fair deal from De Beers diamonds and that the industry benefits both the company and the country.
Facts and Figures
Sources
This article aims to provide a comprehensive overview of the issues surrounding De Beers' operations in Botswana. The article highlights the complexities of the diamond industry and the challenges faced by governments and mining companies in ensuring that natural resources benefit both the company and the country.
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:
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
To understand the current tension, one must look at Debswana—the 50/50 joint venture between the Botswana government and De Beers. For half a century, this partnership has transformed Botswana from one of the world's poorest nations into a middle-income success story. Diamonds account for roughly 30% of the country’s GDP and the vast majority of its foreign exchange earnings.
Under the previous long-term agreements, De Beers held the lion's share of the "marketing" power. While Botswana owned half the mines, the majority of the rough stones were sold through De Beers' global distribution network. The New Deal: Progress or Posturing?
The 2023 negotiations between President Mokgweetsi Masisi and De Beers were uncommonly public and surprisingly aggressive. President Masisi threatened to walk away from the deal entirely unless Botswana received a larger slice of the pie.
The resulting 10-year sales agreement and 25-year mining licenses changed the math significantly:
Direct Sales: The state-owned Okavango Diamond Company (ODC) will see its share of rough diamond production rise from 25% to 50% over the next decade.
Value Chain Inclusion: De Beers committed to investing in local "downstream" activities like cutting, polishing, and jewelry manufacturing.
Development Fund: A multi-billion pula Diamonds for Development Fund was established to diversify Botswana's economy.
While this looks like a win on paper, critics argue that the deal focuses on a "sunset industry." The Lab-Grown Threat
The biggest argument for the "raw deal" theory isn't necessarily De Beers' greed, but the timing of the market. Botswana is fighting for a larger share of a natural diamond market that is facing an existential crisis from Lab-Grown Diamonds (LGDs).
LGDs are chemically identical to mined diamonds but cost a fraction of the price. As consumers—particularly Millennials and Gen Z—prioritize price and ethical transparency, the demand for natural stones has softened. Some analysts believe that by the time Botswana gains full control of 50% of its production, the global price for natural rough diamonds may have collapsed to a point where the increased volume cannot offset the lost value. Transparency and the "Middleman" Problem
A persistent grievance in Gaborone is the lack of transparency regarding how De Beers prices diamonds. Because De Beers controls a vast portion of the global supply chain, it has historically set the "standard." Local activists and some politicians argue that:
Botswana lacks the independent capacity to verify if it is getting true market value.
Transfer pricing—where goods are sold between entities of the same company—could be stripping the country of tax revenue.
The "aggregation" process, where Botswana’s high-quality stones are mixed with lower-quality stones from other De Beers mines (like those in Canada or South Africa), might dilute the premium price Botswana should receive. The Burden of Diversification
Perhaps the most significant "raw deal" isn't about the diamonds themselves, but the dependency they created. Botswana’s economy is a "monoculture." When the diamond market sneezes, Botswana catches a cold.
While De Beers has helped build roads and schools, critics argue the partnership failed to industrialize the country early enough. Now, with mines getting deeper and more expensive to operate (transitioning from open-pit to underground mining), the profit margins are thinning. The government is racing against time to use diamond revenue to build a knowledge-based economy before the pits run dry or the market disappears. Conclusion
Is Botswana getting a raw deal? The answer is nuanced. Compared to other mineral-rich nations in Africa, Botswana has secured an exceptionally favorable arrangement. However, in the context of modern ESG standards and the rise of synthetic competitors, the "old" way of doing business is no longer enough.
The new deal signed in 2023 represents a desperate and necessary grab for sovereignty. Whether it is enough to sustain Botswana's future depends less on De Beers and more on how quickly Gaborone can turn diamond wealth into a post-diamond economy. For now, the partnership remains a "marriage of convenience" where both parties are sleeping with one eye open.
Summary
The relationship between Botswana and De Beers, a multinational diamond mining company, has been a long-standing one. For over 50 years, De Beers has been mining diamonds in Botswana, generating significant revenue for both the company and the government. However, there have been concerns raised about whether Botswana is getting a fair share of the revenue generated from its diamond resources.
Background
Botswana is one of the world's largest producers of diamonds, with De Beers' Jwaneng mine being one of the richest diamond mines in the world. The country's diamond industry accounts for around 80% of its exports and has contributed significantly to its economic growth. However, the revenue generated from diamond mining has not always been evenly distributed, with some arguing that Botswana has been getting a raw deal.
Arguments for a Raw Deal
Several arguments suggest that Botswana may be getting a raw deal from De Beers:
Arguments Against a Raw Deal
On the other hand, some arguments suggest that Botswana is not getting a raw deal:
Recent Developments
In recent years, the Botswana government has taken steps to renegotiate its revenue sharing agreement with De Beers. In 2020, the government announced a new 10-year agreement, which includes a higher revenue share for the government and increased investment in local communities.
Conclusion
The question of whether Botswana is getting a raw deal from De Beers diamonds is complex and multifaceted. While there are valid concerns about revenue sharing and transparency, it is also important to acknowledge the economic benefits and job creation opportunities provided by the diamond industry. The new agreement between the government and De Beers is a step in the right direction, but ongoing monitoring and evaluation are necessary to ensure that Botswana's diamond resources are used to benefit its citizens.
Rating: 4/5
Recommendation: For those interested in learning more about the topic, I recommend reading articles from reputable sources, such as The World News, Africanews, and Bloomberg. Additionally, reports from organizations like the Kimberley Process and the World Bank may provide valuable insights into the diamond industry and its impact on Botswana's economy.
The discussion surrounding whether Botswana is getting a "raw deal" from De Beers Group has shifted significantly following the formal signing of a new partnership agreement in February 2025. While historical sentiments—including those from former President Masisi—suggested Botswana was previously undervalued, the current consensus under President Duma Boko leans toward a more balanced, "transformational" relationship. Recent Developments (as of April 2026)
Formal Agreement Reached: After years of contentious negotiations, a new 10-year sales agreement and a 25-year extension of mining licenses (through 2054) were finalized in early 2025.
Increased Share for Botswana: The state-owned Okavango Diamond Company (ODC) has begun increasing its share of rough diamonds from the Debswana joint venture. It started at 30% and is scheduled to reach 50% by the end of the contract.
Bid for Control: As of April 2026, Anglo American Plc is seeking to divest its 85% stake in De Beers. Botswana, which already owns 15%, is actively exploring a controlling stake (over 50%) to secure greater sovereignty over its resources. The "Raw Deal" Perspective vs. Current Reality Is Botswana Getting a Raw Deal From De Beers Diamonds?
The core argument: Botswana may not be capturing enough value from its diamonds, despite being the world's second-largest diamond producer by value (after Russia) and home to Debswana — a 50/50 joint venture with De Beers.
Sales agreement issues: De Beers has historically had the right to buy 100% of Debswana's production. Critics argue that De Beers then sells diamonds at higher prices through its global distribution network, leaving Botswana with only mining profits and taxes, not downstream margins.
New deal (2023): Botswana and De Beers recently renegotiated their agreement. Key wins for Botswana include:
Remaining concerns: Some analysts argue Botswana still lacks full pricing power, because De Beers controls the global "sight" system and marketing (e.g., "A Diamond Is Forever"). Botswana also struggles to build a competitive local cutting and polishing industry due to lower wages elsewhere (India, for instance).
Timing is everything. Botswana’s push for a new deal comes at the worst possible moment for De Beers—and perhaps the best for Botswana.
The diamond industry is in crisis. Lab-grown diamonds (LGDs) have collapsed the price of low-quality natural stones. A two-carat lab stone that cost $5,000 five years ago now sells for $500. While high-end natural diamonds remain resilient, the middle market is a bloodbath.
De Beers needs stability. Botswana, however, needs diversification. The government has launched a $6 billion initiative to become a diamond hub, including building a new diamond technology park and a forensic gemstone center.
Botswana’s bargaining chip is simple: Give us the rough stones, or we will simply refuse to renew your mining license.
De Beers’ counter is equally simple: We are the only ones with the global marketing machine (the "A Diamond Is Forever" legacy) and the banking relationships to keep prices stable.
Botswana and De Beers have a long-running, high-stakes partnership: Debswana, the 50:50 joint venture, has powered much of Botswana’s post‑independence prosperity by mining and marketing the country’s gem‑quality diamonds. Recently that relationship and the structure of diamond sales have come under scrutiny as market shocks (lab‑grown diamonds, tariffs, weaker demand) and renegotiated sales arrangements change who captures value. Follow The World News for ongoing coverage of
The current renegotiation is arguably the most significant in the partnership's 54-year history. Botswana’s President, Mokgweetsi Masisi, has taken a hardline stance, suggesting the government could walk away if terms do not improve.
Why the aggression now? Because Botswana finally has leverage. De Beers' supply from other major sources, like South Africa and Canada, has dwindled. Furthermore, sanctions on Russian diamonds (Alrosa) have tightened global supply. Botswana is currently the world’s largest producer of diamonds by value. Without Botswana’s output, De Beers would struggle to maintain its dominance in the market.