Botswana has signed a 10-year deal with De Beers to increase its stake in diamond sales from 25% to 30%, potentially reaching 40%. The agreement bolsters Botswana’s economy, which relies heavily on diamonds, while De Beers invests $75 million in development. Local civil groups stress the need for benefits to reach affected communities as the industry stabilizes during challenging times.
Botswana and the South African mining company De Beers have signed a significant 10-year agreement that increases the country’s involvement in diamond sales. This deal, which was the result of six years of negotiations, raises Botswana’s share of rough diamond sales from 25% to 30% initially, with the possibility of expanding to 40% in the next phase. Additionally, De Beers has received a 25-year extension for its mining licenses in Botswana, reinforcing its established role in the country’s diamond sector.
Diamonds constitute around 80% of Botswana’s export earnings and a quarter of its GDP, making this agreement critical for the economy, especially as the diamond sector faces challenges from declining global demand and sanctions on Russian diamonds. The new deal aims to stabilize the industry and includes a commitment from De Beers to invest $75 million in a diamond development program to enhance the marketing of Botswana’s diamonds.
While the agreement has been positively received by local economists and government officials, civil society groups emphasize the need for the benefits of diamond mining to reach affected communities. The deal represents a strategic move for Botswana to address the fluctuations in diamond prices while ensuring its continued significance in the global market. Furthermore, it underscores President Duma Boko’s vision for Botswana’s diamond sector, which is already the largest by value globally and second in volume, following Russia.
The landmark deal between Botswana and De Beers marks a pivotal step towards reinforcing Botswana’s economic stability through enhanced participation in the diamond market. While the potential for increased revenue is substantial and investment in development projects is encouraging, it remains crucial that the benefits extend to local communities. This agreement also reflects ongoing efforts to secure a long-term, prosperous future for Botswana’s diamond industry amid external challenges.
Original Source: northafricapost.com
