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First with the News

Botswana Raises Stakes In Diamond Renegotiation Talks With De Beers

February 14, 2023
in Economy, Top Stories
0
Botswana Raises Stakes In Diamond Renegotiation Talks With De Beers

President Mokgweetsi Masisi of Botswana.

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By John Ikani

Botswana’s President Mokgweetsi Masisi has issued a warning that his country may cut ties with De Beers, South Africa’s diamond giant, if talks to renegotiate a sales agreement do not favour his country.

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The 2011 sales agreement that governed the marketing terms for diamonds produced by Debswana, a joint venture between the Botswana government and De Beers, expired in 2021.

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While negotiations were extended due to the COVID-19 outbreak, they are set to conclude on June 30, 2023.

Speaking at a rally in his home village of Moshupa, Masisi emphasized that “If we don’t reach a win-win situation, each side will have to pack up and go home.”

The 2011 agreement saw De Beers receive 90% of rough diamonds produced, with Botswana receiving the remaining 10%. However, in 2020, Botswana’s share was increased to 25%, and they hope to further renegotiate in their favor.

What you should know

Botswana is one of the world’s richest countries in terms of diamond production.
The country is a major player in the global diamond industry, and its mines have produced some of the largest and most valuable diamonds in history.

In fact, diamonds account for around 70% of Botswana’s export earnings, making it a crucial contributor to the country’s economy.

In addition, Botswana has been successful in ensuring that diamond revenues are used for the benefit of its citizens, with policies in place to support healthcare, education, and infrastructure development.

Tags: breakingDe BeersHeritageheritage timesheritagetimesmedialatestnewsPresident Mokgweetsi Masisithe heritage timesthtthtafricatop stories
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