By Daniel Itai
The Government of Botswana and De Beers have signed another diamond deal, allowing the Anglo-American diamond company to continue its mining operations in the country. Both entities jointly own a diamond mining company called Debswana, with De Beers holding the majority stake.
The newly signed sales agreement secures the rights for Debswana Diamond Company’s rough-diamond production until 2033. Additionally, the new 25-year Debswana mining licenses will remain valid until 2054.
However, prior to this agreement, Botswana’s President Mokgweetsi Masisi had stated that the government would not renew the 54-year partnership with De Beers if they did not receive a larger share.
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Previously, the Botswana Government held a 25 percent stake in the rough diamonds mined through its partnership with De Beers, while the remainder was controlled by De Beers.
“The transformational new agreements between Botswana and De Beers reflect the aspirations of the people of Botswana and propel both Botswana and De Beers forward, underpinning the future of their Debswana joint venture through long-term investments,” stated Debswana.
Masisi aims to enhance Botswana’s position in the diamond value chain by shifting focus from mining to hosting more cutting and polishing of diamonds within the country. Diamond mining contributes to one-third of Botswana’s Gross Domestic Product, playing a significant role in the nation’s rise as the sixth wealthiest country in Africa per capita.
In recent months, African leaders have emphasized the importance of having larger stakes in foreign investment partnerships, particularly those involving mineral resources.
