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Botswana and De Beers Finalize 10-Year Diamond Sales Agreement

Botswana and De Beers have finalized a new 10-year sales agreement, allowing Botswana to sell 30% of mined diamonds, increasing to 50% by 2035. This strategy aims to recover declining diamond revenue, which has dropped to $4.2 billion in 2023 from $7 billion. The deal is set to be finalized by the end of February, with an option for five-year renewal.

Botswana has secured a new 10-year diamond sales agreement with De Beers, following extensive negotiations that began in 2019. The agreement allows Botswana’s government to initially market 30% of the rough diamonds extracted from their joint venture, with plans to increase this share to 50% by 2035. This deal aims to counter a significant drop in diamond revenue, which fell from $7 billion to $4.2 billion in 2023 due to decreasing demand.

Historically, Botswana has relied heavily on diamond exports as a vital source of national income. The decline in revenue has raised concerns about the long-term sustainability of this dependence, prompting the government to negotiate a higher share of diamond sales from the De Beers partnership. This new agreement signifies a strategic shift aimed at stabilizing and increasing Botswana’s profitability in the competitive diamond market.

In conclusion, the recently finalized agreement between Botswana and De Beers marks a significant step towards revitalizing the diamond sector, ensuring the government’s share of diamond sales increases over the next decade. With supportive responses from industry leaders, this partnership reflects a commitment to fostering a stable and profitable diamond industry amid changing market dynamics.

Original Source: www.africa.com

Marcus Thompson

Marcus Thompson is an influential reporter with nearly 14 years of experience covering economic trends and business stories. Originally starting his career in financial analysis, Marcus transitioned into journalism where he has made a name for himself through insightful and well-researched articles. His work often explores the broader implications of business developments on society, making him a valuable contributor to any news publication.

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