Botswana's President Demands Better Diamonds Deal From De Beers
Botswana’s President, Mokgweetsi Masisi, recently demanded for a better deal from De Beers stating that the southern African country must improve the beneficiation of its diamonds.
De Beers is a diamond mining and trading company that operates primarily in Africa founded in 1888 by Cecil Rhodes. De Beers has since diversified its operations and is now a subsidiary of Anglo American, one of the world’s largest mining companies.
Masisi stated that Botswana is a significant global producer of diamonds in terms of both value and quantity but only receives a small portion of the potential revenue.
Masisi emphasized the importance of improving the deal with De Beers or walking away from it entirely, rather than settling for inadequate terms.
He compared the situation to a herdsman claiming ownership or greater benefit from someone else’s cattle and noted that Botswana’s differences with De Beers should be resolved under British law.
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Masisi said he is committed to fighting for a better deal that benefits the people of Botswana despite potential electoral consequences. He concluded by stating that even if the country loses the dispute, its diamonds will remain its own, and he refuses to allow Batswana to be robbed because of an agreement made out of ignorance. He said:
We’ve learnt a lot from our relationship with De Beers. including the fact that we lose $ I Sbillion every year for selling our diamonds raw without beneficiation. We are a major global diamond producer, both in terms of value and quantity. We should therefore benefit more. Our benefit from the potential $15bn is at most $8billion.
Further beneficiation of our diamonds into gems and jewellery is worth $ 1 00bn. Where is our benefit from there? Clearly, our agreement with De Beers is very limiting for us; and we must either get a better deal or walk away completely. We must refuse to be enslaved. Your herdman cannot claim ownership or greater benefit from your cattle.
According to the agreement, our differences should be resolved under British Laws. We signed out of ignorance because we were a new economy. But we will soldier on. We can decide to surrender and settle for breadcrumbs: or fight to the bitter end. Even if we lose the dispute under British legislation, our diamonds will remain ours and we will never back down.
I am not a coward and I refuse to allow Batswana to be robbed on the basis of an agreement that we entered into because we didn’t know any better. If this issue costs me electoral victory then so be it.
President Masisi’s recent comments about the need for a better deal with De Beers come as negotiations continue between Botswana and the diamond company over the renewal of their current agreement, which is due to expire in 2023.
Under the current agreement, De Beers has access to 90% of Botswana’s diamond production, and the government receives a 15% royalty payment.
While Botswana’s diamond industry is a significant contributor to its GDP, President Masisi believes that the country can benefit even more and is determined to secure a better deal with De Beers or consider other options.
Africa is home to vast mineral deposits, but the continent has little to show for it as most of its resources are exported in their raw form due to a lack of infrastructure, technology, and skills to add value to their resources. Analysts have long called for African countries to export finished or semi-finished products to capture greater value, create jobs, and promote growth.
