Botswana President Mokgweetsi Masisi warned on Sunday (February 12th) that his country could sever ties with diamond giant De Beers if talks to renegotiate a sale deal prove unfavorable for his country.
The 2011 sales agreement governing the marketing terms of diamonds produced by Debswana, an equal joint venture between the government and the South African company, expired in 2021. It was extended by the parties, who invoked the Covid-19 epidemic to explain the delay in concluding negotiations, and will end on June 30, 2023.
Speaking at a Botswana Democratic Party (BDP) rally in his home village of Moshupa, Mr Masisi warned: “If we don’t achieve a win-win situation, each side will have to pack their bags. and go home. Under the 2011 deal, mining company De Beers received 90% of the rough diamonds produced, while Botswana, Africa’s top diamond producer, received 10%. In 2020, Botswana’s share was increased to 25%.
Today, “we got a glimpse of how the diamond market works and found that we received less than what we were supposed to receive,” said Mr. Masisi, who spoke in both English and in Tsuna. “We also found out that our diamonds bring in a lot of profit and the [2011] deal didn’t work for us,” he added, before warning, “We want a bigger share of our diamonds. . Business cannot continue as before. »
