Botswana is at a defining moment in its history. The raw deal it may or may not be getting from De Beers is not just about a mining contract; it is about national sovereignty, economic survival, and the future of a country that has long been held up as a model for resource-rich nations.
The partnership reached a critical juncture in 2024. The global diamond market, pummeled by competition from cheap lab-grown gems and weak demand from China and the US, sent Botswana’s economy into a tailspin. Economic growth plummeted, government revenues shrank, and public finances were strained to a breaking point.
For decades, the 50/50 joint venture, Debswana, has been the cornerstone of this relationship, operating world-famous mines like Jwaneng and Orapa. Diamonds quickly became Botswana’s lifeblood, accounting for roughly 80% of its exports and a third of its GDP and government revenue. In return for mining rights, De Beers provided the global marketing and distribution network that turned Botswana’s stones into coveted luxury goods. Botswana is at a defining moment in its history
Today, the argument that Botswana is being shortchanged rests on three primary pillars:
[ Mining in Botswana ] ──> [ Aggregation/Rough Sale ] ──> [ Cutting & Polishing ] ──> [ Retail Jewelry ] (High Volume / Taxed) (De Beers Controlled) (Low Local Margin) (Massive Margins) The global diamond market, pummeled by competition from
However, the economic establishment, including the International Monetary Fund (IMF), has strongly advised against this move. Given Botswana's already strained fiscal position, its rising debt-to-GDP ratio, and the ongoing slump in the diamond market, critics argue that spending billions of dollars to acquire a distressed asset like De Beers would be financial suicide. The opposition Botswana Congress Party (BCP) has even called the potential acquisition "illegal," arguing it "could bankrupt the country".
only received 25% of the diamonds mined by their joint venture, , while De Beers took 75%. Missing Downstream Value a 10% royalty fee
When factoring in corporate taxes (which scale up with profitability), a 10% royalty fee, and the government’s 50% dividend share in Debswana, Botswana takes home roughly 80 to 85 cents of every dollar generated by Debswana’s mining operations.