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

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.

A multi-billion pula Diamonds for Development Fund was established to diversify Botswana's economy.

The signing of the sales deal in early 2025 did not end the debate. Instead, it became a stepping stone for a bolder, more existential play. Historically, De Beers mined the rough diamonds in

De Beers committed to investing in local "downstream" activities like cutting, polishing, and jewelry manufacturing.

Is Botswana Getting a Raw Deal From De Beers Diamonds? The long-standing partnership between the government of Botswana and De Beers, the world's leading diamond company, has often been hailed as a model for resource-driven development. For decades, this joint venture, known as Debswana, has transformed Botswana from one of the poorest nations in Africa into a middle-income economy. However, as the global diamond market faces shifting dynamics and Botswana seeks greater control over its natural wealth, critics and policymakers alike are asking a critical question: Is Botswana getting a raw deal from De Beers? The Historic Foundations of the Partnership The signing of the sales deal in early

Historically, the joint venture between the government and De Beers, known as Debswana , allocated 75% of all rough diamonds directly to De Beers. This arrangement left Botswana's state-owned Okavango Diamond Company (ODC) with just a 25% share to sell independently. Critics argued that this system starved the local economy of job creation and technical expertise, effectively shortchanging the world’s largest producer of rough diamonds by value.

For decades, Botswana was heavily restricted in how much it could market and sell independently. The previous sales agreements gave De Beers immense control over how and where the diamonds were sold. Is Botswana Getting a Raw Deal From De Beers Diamonds

Yet, from the very beginning, the scales of benefit have been a source of latent tension. Profits were largely booked abroad, and for a long time, Botswana's leadership did not have full visibility of the true value of its own resources. Over the past 20 years, the government has learned to negotiate harder, clawing back a larger share of the proceeds. However, for many local economists and political leaders, the shift has been far too slow and insufficient.

While Botswana has successfully extracted major concessions from De Beers, the global landscape has shifted dramatically, meaning a higher percentage of diamond revenues may no longer guarantee economic stability. The Lab-Grown Diamond (LGD) Disruption

Comentarios

Búsquedas relacionadas

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.

A multi-billion pula Diamonds for Development Fund was established to diversify Botswana's economy.

The signing of the sales deal in early 2025 did not end the debate. Instead, it became a stepping stone for a bolder, more existential play.

De Beers committed to investing in local "downstream" activities like cutting, polishing, and jewelry manufacturing.

Is Botswana Getting a Raw Deal From De Beers Diamonds? The long-standing partnership between the government of Botswana and De Beers, the world's leading diamond company, has often been hailed as a model for resource-driven development. For decades, this joint venture, known as Debswana, has transformed Botswana from one of the poorest nations in Africa into a middle-income economy. However, as the global diamond market faces shifting dynamics and Botswana seeks greater control over its natural wealth, critics and policymakers alike are asking a critical question: Is Botswana getting a raw deal from De Beers? The Historic Foundations of the Partnership

Historically, the joint venture between the government and De Beers, known as Debswana , allocated 75% of all rough diamonds directly to De Beers. This arrangement left Botswana's state-owned Okavango Diamond Company (ODC) with just a 25% share to sell independently. Critics argued that this system starved the local economy of job creation and technical expertise, effectively shortchanging the world’s largest producer of rough diamonds by value.

For decades, Botswana was heavily restricted in how much it could market and sell independently. The previous sales agreements gave De Beers immense control over how and where the diamonds were sold.

Yet, from the very beginning, the scales of benefit have been a source of latent tension. Profits were largely booked abroad, and for a long time, Botswana's leadership did not have full visibility of the true value of its own resources. Over the past 20 years, the government has learned to negotiate harder, clawing back a larger share of the proceeds. However, for many local economists and political leaders, the shift has been far too slow and insufficient.

While Botswana has successfully extracted major concessions from De Beers, the global landscape has shifted dramatically, meaning a higher percentage of diamond revenues may no longer guarantee economic stability. The Lab-Grown Diamond (LGD) Disruption