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

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.

To help me tailor any further analysis on this economic partnership, tell me: Are you most interested in exploring the on this deal, the financial health of the Okavango Diamond Company (ODC) , or how Botswana plans to diversify its economy? Share public link

Consider this: A rough diamond dug in Botswana might be cut in Surat, India, polished in Antwerp, set in New York, and sold to a bride in Tokyo. Of that final retail price (which could be 5x to 10x the rough value), Botswana currently captures only the cost of extraction plus half the rough profit.

The core of the "raw deal" argument lies in a fundamental absurdity. Botswana's state-owned Okavango Diamond Company (ODC) now receives an allocation of rough stones, which it intends to sell directly to buyers. In November 2025, ODC began transitioning to a contract sales model to diversify away from De Beers' control. The ambition is to eventually sell 50% of its allocation through these direct channels. This is a crucial step toward economic sovereignty. While the argument for a better deal is

Under the previous long-term agreements, De Beers held the lion's share of the "marketing" power. While Botswana owned half the mines, the majority of the rough stones were sold through De Beers' global distribution network. The New Deal: Progress or Posturing?

While the 2025 agreement improved Botswana's diamond sales share to 50% by 2035, the government argues the 15% stake in De Beers remains unbalanced given its 70% supply share. President Duma Boko is now seeking a majority stake in De Beers to secure control over global pricing and branding, with a bid deadline set for April 16, 2026. For more details, visit mining.com Anglo American

Botswana is not asking for a tweak; it is asking for a revolution. President Masisi wants the state to leap from a passive mining partner to the apex predator of the value chain. He wants a dramatically increased share of rough stones—up to 50% of Debswana’s production—to be sold to the state directly. Furthermore, he wants those stones sold not to De Beers, but to a burgeoning local cutting, polishing, and jewelry manufacturing industry. To help me tailor any further analysis on

De Beers, now majority-owned by Anglo American, is resisting. They argue that the global diamond market is fragile. They claim that flooding a landlocked country with rough stones that cannot be sold for top dollar would destroy value. Privately, industry insiders admit that De Beers is terrified of a precedent. If Botswana takes control of its own supply, what stops Canada, South Africa, or Namibia from doing the same?

A persistent grievance in Gaborone is the lack of transparency regarding how De Beers prices diamonds. Because De Beers controls a vast portion of the global supply chain, it has historically set the "standard." Local activists and some politicians argue that:

To understand the current friction, one must look at the current sales agreement, set to expire soon. The prevailing myth is that Botswana (through its state-owned entity, Okavango Diamond Company) and De Beers are equal partners—a 50/50 joint venture known as Debswana. The core of the "raw deal" argument lies

By taking these steps, Botswana can ensure that it gets a fair deal from De Beers diamonds and that the industry benefits both the company and the country.

This dynamic changed under the administration of President Duma Boko. A finalized, comprehensive 10-year sales agreement and a 25-year extension of Debswana’s mining licences through 2054 fundamentally altered the profit split: Latest Group news - De Beers Group

: The state-owned Okavango Diamond Company (ODC) has begun increasing its share of rough diamonds from the Debswana joint venture. It started at 30% and is scheduled to reach 50% by the end of the contract.