Domestic critics and international institutions have urged extreme caution. The Botswana Congress Party (BCP), an opposition party, has called the potential acquisition "illegal," arguing that it has been subjected to no proper appraisal or due diligence and could potentially bankrupt the country.
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An initial BWP 1 billion (approx. $75 million) investment by De Beers to help diversify the economy, with potential for further contributions. $75 million) investment by De Beers to help
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Under the terms of the agreement, De Beers pays the government of Botswana a royalty of 10% on the value of diamonds extracted from the mines. However, critics argue that this royalty rate is too low, and that the government of Botswana is not getting a fair share of the revenue generated by the diamond industry. However, critics argue that this royalty rate is
Ultimately, the true measure of whether Botswana gets a "good deal" moving forward will depend on its ability to utilize its newly won diamond allocations to build a fully integrated, self-sustaining domestic economy before the country's finite underground treasures are depleted for good.
Following years of tense negotiations and a historic political transition, Botswana has rewritten the rules of its diamond ecosystem to ensure it no longer plays second fiddle to its corporate partner. The New Dawn: The 2025 Diamond Deal Macroeconomic Volatility and Anglo American's Restructuring
For a long time, this was considered the "best deal in Africa." De Beers provided the technical expertise, marketing muscle, and global distribution network, while Botswana provided the resource. It was a symbiotic relationship that stabilized the global diamond supply and built modern Botswana.
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."
For decades, Botswana has been hailed as one of the few African nations to successfully bypass the notorious "resource curse". Discovered in the 1960s, just as the country gained independence, diamonds quickly transformed Botswana from one of the world's poorest countries into an upper-middle-income economy.
The rapid rise of synthetic, lab-grown diamonds poses an existential threat to natural diamond producers. LGDs are chemically and optically identical to mined diamonds but retail at a fraction of the cost. As younger consumers embrace synthetics for their affordability and perceived eco-friendliness, the demand and prices for natural diamonds have faced severe downward pressure. Macroeconomic Volatility and Anglo American's Restructuring