Botswana has finalized a landmark 10-year agreement with De Beers, increasing its share of diamond sales from 25% to 30%, with a potential rise to 40%. The deal includes a 25-year extension of De Beers’ mining licenses and a $75 million investment in a diamond development program. While celebrated by many, there are calls for greater community benefits amid economic uncertainties.
Botswana has reached a significant 10-year agreement with De Beers, enhancing its involvement in diamond sales and strengthening its vital diamond sector. Following six years of negotiations, Botswana will see its share of rough diamond sales increase from 25% to 30% in the initial five years, with the potential to rise to 40% thereafter. Furthermore, De Beers has attained a 25-year extension for its mining licenses in Botswana, reinforcing its long-standing operations within the country’s profitable diamond market.
Diamonds constitute a crucial component of Botswana’s economy, generating around 80% of its export earnings and contributing a quarter to its gross domestic product (GDP). Nonetheless, the diamond sector has been facing challenges due to a decline in global sales, compounded by sanctions on Russian diamonds. The landmark agreement, recognized as a pivotal measure for industry stabilization, also includes a commitment from De Beers to enhance the marketing of Botswana’s diamonds, initiating a $75 million diamond development program.
While the deal has been positively received by local economists and government representatives, various civil society organizations are advocating for the benefits to be felt by communities affected by mining activities. As Botswana contends with inconsistent diamond prices, this new arrangement signifies a decisive step toward economic stability, reinforcing the nation’s status in the global diamond market. Further, the agreement demonstrates President Duma Boko’s dedication to a prosperous future for Botswana’s diamond industry, as the country stands as the largest diamond producer by value, second only to Russia in terms of volume.
In summary, Botswana’s landmark agreement with De Beers marks a substantial enhancement of the nation’s diamond industry. The deal not only increases Botswana’s revenue share but also ensures a stable long-term partnership with De Beers. While challenges remain due to fluctuating market conditions, the agreement is a significant stride toward solidifying Botswana’s position in the global diamond trade and fulfilling its economic potential.
Original Source: northafricapost.com
