Botswana and De Beers have signed a 10-year diamond sales agreement, allowing Botswana to sell 30% of mined diamonds, increasing to 50% by 2035. This comes after negotiations beginning in 2019 and aims to reverse the decline in diamond revenues. The deal has received positive responses from industry leaders and reinforces long-term commitments within the diamond market.
The government of Botswana and the South African diamond enterprise De Beers have successfully concluded a new 10-year sales agreement following extensive negotiations that commenced in 2019. This pivotal deal permits Botswana to initially sell 30% of the rough diamonds obtained from their joint mining operations, with this percentage increasing to 50% by the year 2035. The agreement is strategically essential for addressing the significant decline in diamond revenue, which has fallen from $7 billion annually in the past to an estimated $4.2 billion in 2023 due to waning demand.
The recent agreement between Botswana and De Beers represents a significant step toward revitalizing Botswana’s diamond industry. With a phased increase in diamond sales from 30% to 50% over the next decade, this partnership aims to bolster revenue amid global market fluctuations. The collaboration reflects a commitment to sustained growth and stability within the diamond sector.
Original Source: www.africa.com
