Botswana’s government will withhold certain details of its new diamond sales agreement with De Beers, citing market pricing strategies
BONGANI MALUNGA
Certain aspects of the recently finalized sales agreement between the Botswana government and De Beers will remain undisclosed. Minister of Minerals and Energy Bogolo Kenewendo confirmed the decision, explaining that withholding some details is a strategic move to control the country’s diamond pricing.
Limited disclosure
Last Monday, the government announced the successful conclusion of negotiations over a contract extension with De Beers. While the statement did not include full details, Kenewendo revealed that more information would be shared at the signing stage.
Market pricing strategy
Speaking to the BBC last Friday, Kenewendo stated, “Some details will be available to the public right after signing.” However, she emphasized that certain aspects of the deal would remain confidential to protect Botswana’s market position. “Some of the details impact our pricing. When you sell something, you don’t necessarily want everybody to know how you are pricing your goods,” she said.
Strengthening Botswana’s diamond industry
Vice President and Minister of Finance Ndaba Gaolathe praised the agreement as an “enhanced” deal while delivering the Budget Speech on Monday. He highlighted that finalizing negotiations within 100 days of the new administration would boost market confidence. “This agreement ensures greater value retention for Botswana and strengthens our position as a global leader in the diamond industry,” Gaolathe stated.
Political backlash
The Botswana Democratic Party (BDP) has criticized the agreement, calling for full disclosure. The party accused the new government of potentially waiving unpaid taxes from De Beers, arguing that this could deprive Batswana of much-needed funds for healthcare, education, infrastructure, and job creation.