Is Botswana Getting A Raw Deal From De Beers Diamonds - The World | News

For decades, the sparkling relationship between the arid nation of Botswana and the diamond giant De Beers has been hailed as the "perfect marriage." Diamonds built Botswana’s middle class, funded its free education, and transformed it from one of the poorest countries on Earth into Africa’s most stable, upper-middle-income economy.

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.

When factoring in taxes, royalties, dividends, and joint-venture profits, the government of Botswana retains an estimated 80% to 85% of the value generated by Debswana’s operations. Few mining nations achieve such a high percentage of resource rent retention.

Critics who argue that Botswana is getting a raw deal point to the broader value chain of the diamond industry.

But the "raw deal" isn't about poverty—it's about . For decades, the sparkling relationship between the arid

The evidence suggests that the historical partnership, while providing immense benefits, has consistently favored De Beers and its parent company. Botswana has supplied the vast majority of the stones while retaining only a minority of the ultimate value. The new sales agreement, though improved, falls short of what many believe the country deserves, particularly given its economic hardship.

De Beers committed to investing in a jewelry manufacturing facility, a grading laboratory, and a vocational training institute in Botswana.

Historically, the vast majority of profits in the diamond pipeline are generated in the "downstream" sectors—cutting, polishing, marketing, and retail. For decades, Botswana exported raw materials (rough diamonds) and imported finished luxury goods, missing out on billions in added value.

Yet, from the very beginning, the scales of benefit have been a source of latent tension. Profits were largely booked abroad, and for a long time, Botswana's leadership did not have full visibility of the true value of its own resources. Over the past 20 years, the government has learned to negotiate harder, clawing back a larger share of the proceeds. However, for many local economists and political leaders, the shift has been far too slow and insufficient. They provide the global marketing machine—the famous "A

Historically, Debswana sold 75% of its output to De Beers, with 25% allocated to the state-owned Okavango Diamond Company (ODC). While this created massive revenue, Botswana’s government has long felt that De Beers maintained a dominant stake in sorting, valuation, and marketing, limiting Botswana’s control over its own resources. The 2025/2026 Turning Point: A Better Deal?

The debate over whether Botswana is getting a raw deal ultimately forces the nation to look toward a future where it is less dependent on a single corporate partner—and a single commodity.

What do you think? Should resource-rich nations control their own diamond destiny? Join the conversation in the comments below.

With Anglo American owning the lion's share of De Beers, profits were flowing out to international shareholders rather than being fully reinvested in the local economy. The Ultimatum and the Landmark Deal Critics who argue that Botswana is getting a

However, in the context of modern resource nationalism, the historic division of wealth undeniably favored the corporate entity over the host nation. The new sales agreement represents a massive course correction, giving Botswana a much larger piece of the pie and vastly increased leverage over how its natural wealth is monetized.

For decades, the partnership between the Government of Botswana and De Beers Group was hailed as the world’s most successful public-private partnership. Founded via the 50-50 joint venture , the arrangement successfully lifted Botswana into an upper-middle-income nation.

However, analysts point out that De Beers pays royalties and taxes that are competitive, but perhaps not maximized for the producer's benefit. As the global diamond market fluctuates and synthetic (lab-grown) diamonds threaten natural prices, Botswana is seeking to secure a higher "floor" price or a larger volume allocation to sell independently. By relying heavily on De Beers' marketing machinery, Botswana arguably remains a tenant in its own house, renting out its soil rather than truly owning the product.