Botswana has officially signed a long-delayed diamond sales agreement with De Beers, an Anglo American AAL.L unit, aiming to boost job creation amid economic uncertainty.
Negotiations for the deal began in 2018, but despite a provisional agreement under Botswana’s former president in 2023, a formal signing never took place.
President Duma Boko, who took office last October, made finalizing the deal a key priority. The agreement is seen as crucial to Botswana’s economy, which heavily relies on diamond exports.
“We have secured a strong deal, one that will sustain us into the future. To the people of Botswana, this is about you—about the jobs and opportunities it will bring,” Boko said during the signing ceremony in Gaborone.
The terms remain largely in line with the 2023 agreement. Botswana will gradually increase its share of rough diamonds from the Debswana joint venture with De Beers, rising from 25% to 50% over the next decade. Additionally, Debswana’s mining license has been extended for another 25 years, running until 2054.
The country’s economy is believed to have shrunk last year, hit by a global downturn in diamond demand. Prices have dropped due to oversupply, the rise of lab-grown diamonds, and shifting consumer preferences, particularly among younger buyers.
However, the government is optimistic about an economic rebound this year, citing potential improvements in the global diamond market and growth in other sectors.
