Is Botswana Getting A Raw Deal From De Beers Diamonds - The World News [upd] Direct

Botswana, a small landlocked country in Southern Africa, has been hailed as a success story in the diamond industry. The country's rich diamond deposits have made it one of the world's leading producers of the precious gemstone. However, recent developments have raised questions about whether Botswana is getting a fair deal from De Beers, the mining giant that has dominated the country's diamond industry for decades.

Despite decades of mining, Botswana’s unemployment rate remains stubbornly high, hovering around 25%. The government argues that by keeping cutting and polishing centers in places like Surat (India) or Antwerp (Belgium), De Beers has exported thousands of potential Motswana jobs.

While the argument for a better deal is strong, the "raw deal" narrative has a flip side. De Beers provides more than just a checkbook. They provide the global marketing machine—the famous "A Diamond is Forever" campaigns—that sustains the value of the stones. Botswana, a small landlocked country in Southern Africa,

Despite the improved terms, voices in Botswana, including politicians like Ndaba Gaolathe, argue that the country has historically missed opportunities to own its full value chain.

Measuring fairness: frameworks and metrics Determining whether Botswana is getting a raw deal depends on the metric: De Beers provides more than just a checkbook

The vast majority of cutting, polishing, and jewelry manufacturing historically took place overseas. Botswana missed out on the lucrative downstream stages of the supply chain that create the most jobs and economic value.

For most of the partnership, all diamonds were flown to De Beers’ headquarters in London for sorting and valuation. Botswana provided the raw material, but the intellectual capital—the science of knowing which stone goes to which jeweler—remained abroad. President Mokgweetsi Masisi has famously called this arrangement "unsustainable," demanding that sorting and valuation happen entirely within Botswana’s borders. this represents a significant roadblock. Ultimately

However, experts point out the inherent contradiction: Botswana is investing in its own sales infrastructure while simultaneously agreeing to continue funnelling the bulk of its stones through the De Beers system. Further complicating this ambition are reports suggesting that De Beers executives remain resistant to allowing the ODC to host its own independent "sights" for buyers, preferring to keep the supply chain under their supervision. For a country that aims to become a global diamond hub, this represents a significant roadblock.

Ultimately, the true measure of whether Botswana gets a "good deal" moving forward will depend on its ability to utilize its newly won diamond allocations to build a fully integrated, self-sustaining domestic economy before the country's finite underground treasures are depleted for good.