President says Botswana’s diversification drive will not come at the expense of diamonds as the government presses ahead with a bigger De Beers role
BONGANI MALUNGA
President Duma Boko has rejected the argument that Botswana must retreat from diamonds in order to diversify its economy, doubling down on the country’s pursuit of greater influence in De Beers despite earlier warnings against increasing the state’s exposure to the diamond giant.
Speaking at the 13th Parliament Executive Leadership Programme in Kasane on Monday, Boko said Botswana’s economic transformation should be built around creating new productive sectors while preserving the diamond industry that has historically underpinned the country’s growth.
Boko believes that diamonds should be placed firmly inside, rather than outside, the government’s diversification strategy.
NO RETREAT FROM DIAMONDS
“We need productive diversification, diversification on the production side. This diversification cannot merely be a retreat from diamonds because as the evidence shows, diamonds continue to play a critical role, even as we want to diversify and create other engines,” Boko said.
The position pushes back against arguments that Botswana’s dependence on diamonds makes further investment in the sector too risky. The International Monetary Fund previously advised government against significantly increasing its stake in De Beers, citing Botswana’s weakened fiscal position and the risks associated with concentrating more public resources in an industry on which the economy is already heavily dependent.
Botswana currently owns 15 percent of De Beers, while Anglo American is in the process of disposing of its 85 percent interest. The government has repeatedly signalled that its shareholding will rise, although the final size of the stake has not been publicly confirmed. Recent reports have suggested discussions around a stake of about 25 percent.
Boko, however, argued that weakness in the natural diamond market should not be interpreted as proof that the industry has reached the end of its economic relevance. “So how do we engage with the debate on diamonds? That’s a debate at the heart of which sits De Beers. Some are saying the story is over. I maintained and maintained intransigently that the story has only just started. I maintain that position now and into the future,” he said.
SHAPING THE DIRECTION
Boko asserts that this stance is the motive behind the government’s push for a stronger position in De Beers. He said Botswana should use the changes taking place in the ownership of the diamond company to strengthen its ability to shape the future direction of the natural diamond industry rather than become a passive observer.
“That is why it became necessary to venture into the space and seek to take the industry by the scruff of its neck, assert Botswana’s role in that industry and therefore stake a claim to the leadership of the industry for the country,” Boko said.
The President also challenged the view that poor diamond sales necessarily reflected a dying product, arguing instead that shortcomings in marketing had contributed to depressed demand.
EXCLUDING A CRITICAL COMPONENT
“When the argument was that diamonds were not selling, I argued diamonds were just not being sold by those who were tasked to sell them. The marketing of diamonds had excluded a critical component of the very essence of the diamond, the story of the people behind this stone, flesh and blood, people of soul and intellect, whose lives have depended on this commodity,” he said.
Boko linked the industry’s recent signs of recovery to efforts to place producing communities and the human story behind natural diamonds more prominently in global marketing.
Diamond-market conditions have shown some improvement during 2026, although De Beers continues to face pressure from weak luxury demand, competition from laboratory-grown diamonds and the prolonged downturn that has battered the natural diamond industry.
“You can’t write them out of the story, marketing their commodity. That is why when the story of the diamonds and the people was now given pride of mention and prominence in diamond marketing, we are witnessing a rebound, a bounce back,” Boko said.