Is Botswana Getting a Raw Deal From De Beers? For decades, the partnership between
Background
But a shadow looms over Gaborone. As the current sales agreement expires and negotiations for a new deal heat up, a critical question is echoing across the Kalahari: Is Botswana getting a raw deal from De Beers? Is Botswana Getting a Raw Deal From De Beers
The diamond industry is in crisis. Lab-grown diamonds (LGDs) have collapsed the price of low-quality natural stones. A two-carat lab stone that cost $5,000 five years ago now sells for $500. While high-end natural diamonds remain resilient, the middle market is a bloodbath.
Is Botswana Getting a Raw Deal From De Beers Diamonds? The diamond industry is in crisis
For decades, the relationship between the government of Botswana and the diamond giant De Beers has been touted as the poster child for resource management in Africa. It is a narrative of partnership: Botswana provided the geology, De Beers provided the expertise, and together they transformed one of the world’s poorest nations into a stable, middle-income democracy.
But looking forward, the answer is a resounding yes. While high-end natural diamonds remain resilient, the middle
The conflict came to a head this spring. Botswana’s President Mokgweetsi Masisi demanded that state-owned Okavango Diamond Company be allowed to sell 50% of the local production independently, bypassing De Beers’ London sorting room. De Beers countered with an offer of 30%.