- President Boko chooses energy meeting in Dar to make long-awaited announcement
- Says deal is built on provisional terms announced last July under previous administration
LETLHOGILE MPUANG
The Botswana Government and De Beers have finally struck a new agreement whose terms will be revealed soon.
President Duma Boko made the announcement in Dar-es-Salaam, Tanzania yesterday where he is attending an energy conference.
The terms were finalised on 24 January.
As the world’s largest producer of diamonds by value, Botswana relies heavily on its diamond industry, which generates the bulk of national revenues.
P10bn over 10 years
Most of the country’s diamonds are mined through Debswana Mining Company, which is a 50-50 joint venture between the government and DeBeers.
“The issue with De Beers has been settled,” President Boko said, emphasising that the deal will restore stability and foster economic growth.
The agreement builds on provisional terms announced last July under the previous administration.
They allocated 30% of Debswana’s output to the state-owned diamond trader and secured P10 billion ($720 million) in development funding over 10 years.
No major changes
According to the President, the new deal has not resulted in “any major changes, just a little tweaking of things here and there,” he said.
He was referring to what was agreed in principle with the last government that was unseated by Boko’s Umbrella for Democratic Change in general elections at the end of October last year.
Boko had been critical of former president Mokgweetsi Masisi’s handling of the negotiations, suggesting it jeopardised Botswana’s partnership with De Beers.
Ethical provenance
The President acknowledged the growing threat of lab-grown diamonds but dismissed them as inferior to natural gems.
He highlighted plans to promote Botswana’s diamonds by emphasising their ethical provenance and role in national development.
“Diamonds are natural,” the President stated. “We will market them in terms of their provenance and the story behind them.”
Diamond market slump
Botswana has successfully leveraged its diamond wealth to become Africa’s richest country per capita, according to the World Bank. However, a global diamond market slump has posed challenges.
The finalised agreement with De Beers aims to reinvigorate the industry and ensure sustained economic benefits.