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Botswana’s President Mokgweetsi Masisi stated that his country may sever ties with diamond giant De Beers if the renegotiated sales deal proves unfavourable to the country. Masisi called on the nation to rally behind his government as it tries to hammer out a better deal.
Botswana’s President Mokgweetsi Masisi stated that his country may sever ties with diamond giant De Beers if the renegotiated sales deal proves unfavourable to the country. Masisi called on the nation to rally behind his government as it tries to hammer out a better deal.
Botswana is the world’s top diamond producer in terms of value and second in terms of volume. De Beers’ headquarters and the source of the majority of the company’s current output are located here. The nation contains seven mines, the most notable of which are Orapa and Jwaneng. The De Beers Company uses both of these mines. Lucara and Kimberley Diamonds are two other participants in this African country. A vast variety of diamond shapes and colors are found in Botswana. Botswanan diamonds are mostly of good grade and feature a dodecahedron form.
A 2011 sales agreement governing terms for the marketing of diamonds produced by Debswana, a 50-50 joint venture between the government and De Beers, which auctions most of the gemstones, was set to end in 2021. It was extended by the parties citing the outbreak of coronavirus as the reason for the delay to conclude negotiations and it will run through June 30, 2023.
If the country doesn’t achieve a win-win situation each party will have to pack its bags and go, Masisi said at a rally of his ruling Botswana Democratic Party (BDP) in his home village, Moshupa, about 65 kilometers from the capital Gaborone. Masisi said he was kickstarting the campaign for the 2024 legislative election, adding that Botswana was facing a “Goliath” as far as the negotiations were concerned. He further stated that the diamond business has got good profit marking and Botswana is not much benefited from the current agreement.
Read Also;
https://trendsnafrica.com/botswana-to-host-the-permanent-secretariat-of-the-kimberley-process/
https://trendsnafrica.com/another-diamond-feat-in-botswana-1174-carat-gem/
Under the 2011 agreement, De Beers sold 90% of diamonds while Botswana auctioned 10% through its Okavango Diamond Company. In 2020, Botswana’s share was raised to 25%.
