Is Botswana Getting A Raw Deal From De Beers Diamonds - The World News ~upd~ File
Following years of arguing they received a raw deal, Botswana is leveraging a landmark 2025 sales agreement to pursue majority control of De Beers amidst Anglo American's restructuring. As of April 2026, the government is seeking to acquire an 85% stake to transition from a junior partner to controlling owner of the diamond giant. For more details, visit Bloomberg.
3. The "Aggregation" Dispute Currently, diamonds from Botswana are often mixed with stones from South Africa, Canada, and Namibia before being sold. Botswana wants the right to sell its own stones independently—specifically through the state-owned Okavango Diamond Company (ODC) . De Beers is resisting, arguing that aggregation allows for better pricing consistency.
The Legacy vs. The Reality
On paper, the numbers are staggering. Botswana produces roughly 20% of the world’s diamonds by value, including those legendary, massive stones that fetch millions at auction. Through Debswana (the 50/50 joint venture), everything is split down the middle—production, profits, and debt. Following years of arguing they received a raw
: Most rough diamonds were historically shipped abroad for cutting and polishing in hubs like India, depriving Botswana of higher-value manufacturing and retail jobs. Alleged Profit Shifting
Arguments Against a Raw Deal
"The balance has shifted," says Thabo Mokoena, an economist at the University of Botswana. "De Beers still controls the sightholder list—the exclusive buyers. Botswana provides the rocks, but London decides who buys them. In an era where diamond prices are crashing, that control means everything."
The Value Chain Disparity
The central argument for Botswana getting a "raw deal" revolves around value addition. Confidential deals and value leakage The core argument:
The core argument: Botswana may not be capturing enough value from its diamonds, despite being the world's second-largest diamond producer by value (after Russia) and home to Debswana — a 50/50 joint venture with De Beers.
