But the "raw deal" isn't about poverty—it's about .
Several arguments suggest that Botswana may be getting a raw deal from De Beers:
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So, is Botswana getting a raw deal?
De Beers committed to investing in local "downstream" activities like cutting, polishing, and jewelry manufacturing.
Following years of tense negotiations, culminating in a final agreement in February 2025 and ongoing implementations in 2026, the question of whether Botswana is truly maximizing its natural wealth remains central to its economic sovereignty, according to reports from. The Historical Context: A Partnership Built on Dependence
The vast majority of cutting, polishing, and jewelry manufacturing historically took place overseas. Botswana missed out on the lucrative downstream stages of the supply chain that create the most jobs and economic value. But the "raw deal" isn't about poverty—it's about
But beneath the surface of this success story, long-standing grievances have festered. Critics have always pointed to a fundamental imbalance: Botswana supplies an astonishing 70% of De Beers' rough diamonds, yet until recently, it only owned 15% of the diamond giant itself. For many in Botswana, it was a partnership of unequals, where the country took the geological risk while the majority of the value flowed back to London and the Anglo-American shareholders.
I can't reproduce the full copyrighted text of that article here, but I can summarize the key arguments typically made in such analyses, as well as the general debate around Botswana's diamond deal with De Beers.
Botswana, De Beers sign long-delayed diamonds deal - Reuters De Beers committed to investing in local "downstream"
However, experts point out the inherent contradiction: Botswana is investing in its own sales infrastructure while simultaneously agreeing to continue funnelling the bulk of its stones through the De Beers system. Further complicating this ambition are reports suggesting that De Beers executives remain resistant to allowing the ODC to host its own independent "sights" for buyers, preferring to keep the supply chain under their supervision. For a country that aims to become a global diamond hub, this represents a significant roadblock.
Looking back at the trajectory of the last half-century, it is difficult to classify Botswana's relationship with De Beers as a purely "raw deal." De Beers and Botswana built a partnership that modernized an entire nation, built infrastructure, and funded robust healthcare and education systems.
For decades, Botswana functioned primarily as an extraction site. The rough diamonds were dug out of massive pits like Jwaneng (the world’s richest diamond mine by value) and Orapa, only to be exported directly to London. The high-value secondary processes—sorting, valuing, cutting, polishing, and retailing—happened overseas. Botswana exported its wealth and imported the finished luxury goods, leaving local communities with minimal skills transfer outside of basic mining labor. 2. The Monopoly on Selling Power Botswana missed out on the lucrative downstream stages