Botswana’s newly elected president, Duma Boko, announced his intention to swiftly conclude negotiations with De Beers over a new diamond sales agreement. This pact, originally outlined last year, would gradually increase Botswana’s share of diamonds from the Debswana joint venture to 50% over the next decade. Currently, Debswana, which is co-owned by Botswana and De Beers, sells 75% of its diamonds to De Beers.
Despite the outgoing president, Mokgweetsi Masisi, promoting the benefits of the deal, it has not yet been finalised. Boko, addressing concerns about the stalled negotiations, emphasised the importance of re-engaging with De Beers to resolve any issues. He stressed the need for a balanced negotiation that would result in a sustainable and durable agreement for both parties.
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De Beers responded, stating its commitment to continuing discussions with Botswana’s government to achieve mutually beneficial objectives. Meanwhile, Anglo American, which owns De Beers, is exploring divestment as part of a wider restructuring of its business. Analysts believe the conclusion of Botswana’s election will help move the negotiation process forward.
The negotiations come at a challenging time for the diamond industry, with global demand for luxury goods, including diamonds, declining sharply. Debswana’s rough diamond sales have dropped by 52% in the first nine months of 2024, adding pressure on both parties to reach a timely agreement.
