Botswana and De Beers have a long-running, high-stakes partnership: Debswana, the 50:50 joint venture, has powered much of Botswana’s post‑independence prosperity by mining and marketing the country’s gem‑quality diamonds. Recently that relationship and the structure of diamond sales have come under scrutiny as market shocks (lab‑grown diamonds, tariffs, weaker demand) and renegotiated sales arrangements change who captures value.
Direct Sales: The state-owned Okavango Diamond Company (ODC) will see its share of rough diamond production rise from 25% to 50% over the next decade. Exposition: “Is Botswana Getting a Raw Deal From De Beers
Formal Agreement Reached: After years of contentious negotiations, a new 10-year sales agreement and a 25-year extension of mining licenses (through 2054) were finalized in early 2025. Okavango Diamond Company's share
2. The Sales Discrepancy Botswana receives 50% of the rough stones, but it doesn't control 50% of the global supply chain. De Beers’ marketing arm (the infamous "Single Channel") dictates pricing. When the diamond market softens (as it has due to lab-grown diamonds and post-pandemic demand dips), Botswana carries half the production risk but has limited control over pricing strategy. high-stakes partnership: Debswana
Botswana’s bargaining chip is simple: Give us the rough stones, or we will simply refuse to renew your mining license.
Botswana is aggressively pursuing a controlling stake in De Beers, aiming to shift from a historical partnership model to total ownership as part of a strategy to maximize control over its diamond resources and address economic pressures. While recent sales agreements increased the state-owned, Okavango Diamond Company's share, the government is currently seeking financing from Oman to bid for a majority stake amid a significant global diamond market downturn. Read the full details on the, Mining.com