Botswana & Diamonds: a political play?

Botswana, a landlocked country in Africa, is the world's second-largest Diamond producer, one of the continent's most stable countries, and the longest continuous multi-party democracy. A London-based international diamond conglomerate 'De Beers' reserved prosecution rights in Botswana when the country was under British Rule. The company then first realized that Botswana was a high-potential diamond reserve in 1966 when the country gained its independence. 

The Botswana government and De Beers signed a 100-year-long agreement which ended in 2021, now extended to 2023, negotiations are still pending. According to the current business agreement, Botswana receives only 25 % of the rough stones extracted, De Beers takes the other 75%. Officials of the Botswana agreement are not questioning why they receive a lesser share of their own natural minerals if they are equal partners with the international diamond conglomerate. 

It is said that they are even ready to walk away from a half-century-old partnership if they do not get better than this raw deal. The president proclaims that "we refuse to be enslaved." Public pressure now increasing, and a greater question is rising, 'Can African Countries keep a higher share of their natural wealth?"

Botswana happens to be one of the countries in the continent that have benefited more due to their natural resources, but still, the citizens think that they are being cheated, that the diamonds are theirs, and De Beers should take a back seat. Botswana now wants to polish the diamonds themselves and be allowed for retail, it is the saying of their citizens, "We are learned enough now. Like those diamonds, we are processed now.

{De Beers has been attracting some buyers to manufacture in Botswana, promising a preferential allocation of stones.

One of those buyers, Venus Jewel, opened a manufacturing facility in Gaborone last year. About half of the company’s manufacturing workforce in Botswana is from India, but the company hopes locals can eventually take on most of the work, said Lesego Matsheka, Venus’s managing director in Botswana. 

“Most of us grew up with a farm,” she said, referring to her fellow Batswana. “Diamond polishing is something very new.”} - From an article by The New York Times

The Botswana government plans to buy a 24% stake in Belgian company HB Antwerp, which purchases uncut stones from Lucara Diamond. HB pays a portion of the polished stone's value, despite only paying the rough stone price. The deal has alarmed business leaders in Botswana, who question the government's decision to collaborate with a young, young business. Former De Beers CEO Sheila Khama suggests Botswana focus on ensuring De Beers stays in the natural diamond business and maintains a profit-sharing agreement. She warns that if De Beers leaves, Botswana's diamond resources could become sterile.

Analyzing this, the citizens of Botswana argue whether this whole disparity is a political play by the president, in advance of the elections next year, or whether this would actually benefit the country. Let's wait with the rest of the world for the upcoming events between the African country and the International Diamon Conglomerate.

Information curated from VOA News, The New York Times, Reuters, & NPR Org.