Botswana, De Beers sign diamond deal

Botswana and De Beers Group have renewed their long-standing diamond partnership, signing a transformative agreement that extends mining licences for another 25 years and secures a decade-long sales deal. The signing, which took place on Tuesday, 25th February, solidifies Botswana’s role in the global diamond industry and strengthens De Beers’ foothold in one of the world’s most valuable diamond reserves. The agreement, described as “groundbreaking” by De Beers CEO Al Cook, ensures that Debswana—the 50/50 joint venture between the Government of Botswana and De Beers—continues to operate and invest in the country’s diamond sector. “The half-century partnership between the Government of Botswana and De Beers is considered the greatest public-private partnership in the world. Now we are both extending and improving it,” said Cook at the celebratory dinner following the signing. 

The deal grants a 25-year extension to Debswana’s mining licences, now running until July 2054, allowing the company to extract long-term value from its existing operations and future mining expansion projects. Additionally, the agreement includes a renewed 10-year sales contract for Debswana’s rough diamond production, with a possible five-year extension upon meeting specific criteria. 

Local Beneficiation 

A key highlight of the agreement is the establishment of the Diamonds for Development Fund, aimed at accelerating economic diversification, job creation, and sustainable growth in Botswana. De Beers has pledged an initial investment of BWP 1 billion (approximately $75 million) into the fund, with further contributions tied to Debswana’s performance. 

To enhance Botswana’s participation in the diamond value chain, De Beers will invest in a diamond jewellery manufacturing facility, set up a grading laboratory under the De Beers Institute of Diamonds, and launch a diamond vocational training institute in partnership with industry players. These initiatives are expected to boost local skills development and create employment opportunities beyond mining.

Minister of Minerals and Energy Bogolo Joy Kenewendo, who played a key role in the negotiations, emphasised the importance of ensuring that Botswana maximises its natural resource wealth. “Now that we have settled the sales agreement, the hard work starts. We need to build confidence about our diamonds and make everyone realise it is only natural diamonds that matter and not the fake diamonds. The story and impact of natural diamonds in Botswana cannot be measured,” she said. 

Global Diamond Presence 

In a bid to maintain Botswana’s competitive edge in the diamond market, the agreement also includes a co-investment plan between De Beers and the Government of Botswana to fund marketing initiatives. These efforts will promote the ethical integrity of diamonds, drive demand for rough stones, and bolster consumer confidence in natural diamonds amid increasing competition from synthetic alternatives. 

The renewed partnership underscores De Beers’ commitment to Botswana, with Cook reaffirming the company’s confidence in investing further in the country. “Our confidence in investing in Botswana is far greater than it has ever been. We will invest in Botswana,” he said, signalling long-term optimism for the sector. With the agreement now signed, both parties acknowledge that the next phase will require sustained efforts to maximise the economic benefits of Botswana’s diamond wealth. While the negotiations may have taken time, Cook believes the outcome justifies the wait. “Let’s celebrate the world’s most favourable partnership… It was worth the wait,” he said. As Botswana and De Beers embark on this renewed chapter, the focus shifts to ensuring that the country’s diamonds continue to serve as a pillar of economic development, benefiting both the industry and the nation’s broader aspirations.