Is Botswana Getting A Raw Deal From De Beers Diamonds - The World News Jun 2026

Introduction Botswana’s transformation from one of the world’s poorest countries at independence in 1966 to a middle-income African state is widely credited to diamond revenues. Discovered in the late 1960s, diamonds became the engine of Botswana’s economy through a partnership with De Beers, the dominant global diamond company for much of the 20th century. That relationship—centered on the Debswana joint venture (50/50 ownership between the Botswana government and De Beers)—has produced sustained government revenues, infrastructure development, and macroeconomic stability. Yet critics argue Botswana has not captured the full value of its natural resource wealth and continues to receive an unfair share relative to global diamond profits. This essay assesses whether Botswana is “getting a raw deal” from De Beers by examining the historical arrangement, revenue flows, governance and policy choices, value capture beyond mining, market structure and bargaining power, recent contractual changes, and alternative measures of fairness.

De Beers argues the partnership remains "the most successful resource-based partnership in history." A spokesperson in London told The World News : "Botswana has received over $6 billion in dividends and royalties. We have built hospitals, roads, and a diamond hub in Gaborone. The idea of a raw deal is simply not factual."

The of the Okavango Diamond Company (ODC) The impact of lab-grown diamonds on Botswana's state budget Yet critics argue Botswana has not captured the

To understand the current friction, one must look at the current sales agreement, set to expire soon. The prevailing myth is that Botswana (through its state-owned entity, Okavango Diamond Company) and De Beers are equal partners—a 50/50 joint venture known as Debswana.

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. We have built hospitals, roads, and a diamond

If Botswana's finances are strained, De Beers itself is bleeding. The parent company posted an underlying EBITDA loss of $511 million in 2025, driven by weak Chinese demand, competition from lab-grown diamonds, and softening global prices. Even before that, in the first half of 2025 alone, De Beers saw its revenue drop 13% to $1.95 billion as a slump in the crucial Chinese market eroded demand. For a company that has historically dictated the market's terms, this financial distress is a humbling turn.

Is Botswana Getting a Raw Deal From De Beers Diamonds? A 2026 Perspective eliminate corruption within its state-owned entities

The ultimate success of this relationship no longer rests on De Beers' benevolence, but on Botswana's execution. If Gaborone can successfully manage its new market share, eliminate corruption within its state-owned entities, and genuinely diversify its economy away from minerals, this partnership will stand as history's greatest example of a developing nation successfully rewriting its destiny with a multinational corporate giant.