GABORONE – Botswana’s government and mining giant De Beers signed a long-awaited 10-year diamond sales agreement on Tuesday (Feb. 25), ending years of uncertainty. The deal, which includes a possible five-year extension, ensures that state-owned Okavango Diamond Company (ODC) will gradually increase its share in the production of Debswana – a 50-50 joint venture between Botswana and De Beers. Initially, ODC will market 30% of Debswana’s output, up from the previous 25%, with its share rising to 40% by the end of the decade-long agreement.
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Should the extension be implemented, ODC’s stake could reach 50%, according to a joint statement from the government and the mining company.
The agreement marks a significant shift from the provisional deal negotiated by Botswana’s previous administration, which had set ODC’s allocation at 50% by the end of the 10-year term. Talks to renew the contract began in 2018 but faced repeated delays, with a preliminary agreement announced in 2023 never formally signed.
President Duma Boko, who took office in October last year, made finalizing the deal a key priority, signaling a more assertive stance by the government to secure greater control over the country’s diamond industry—Botswana’s main economic pillar.
The economic impact of the agreement is expected to be crucial for Botswana’s recovery after a downturn in global diamond demand led to economic contraction last year. The market has been hit by a supply glut, the rising popularity of lab-grown diamonds, and shifting consumer preferences among younger buyers, all of which have pressured rough diamond prices.
However, the government remains optimistic about a market rebound this year, driven by improving global conditions and growth in other economic sectors. The new deal is expected to provide greater stability for Botswana’s diamond industry and reinforce the country’s position as one of the world’s top diamond exporters.
