Botswana is set to finalise a long-awaited diamond sales agreement with De Beers, aiming to diversify the nation's economy.
President Duma Boko, who assumed office in November 2024, prioritised the deal with De Beers, a unit of Anglo American, as a key focus, according to a report by Reuters.
Boko also mentioned that discussions aimed at increasing Botswana's 15% ownership stake in De Beers were progressing well.
The agreement, expected to be signed soon, will see Botswana's share of diamonds from the Debswana joint venture (JV) gradually increase to 50% over the next ten years. Currently, the JV sells 75% of its diamond output to De Beers.
Anglo American is considering divesting De Beers as part of its broader restructuring efforts.
Boko expressed optimism about the deal's completion during a Reuters NEXT Newsmaker event at the World Economic Forum in Davos, Switzerland.
The agreement was previously stalled under former President Mokgweetsi Masisi.
Botswana, the world's leading diamond producer by value, relies heavily on diamond exports.
However, the country has wisely invested its diamond revenues in health, education and social welfare, resulting in a gross domestic product (GDP) per capita of $7,250 (P99,911) in 2023, surpassing the sub-Saharan Africa average of $4,800, according to data from the World Bank.
Despite a downturn in the global diamond market and rising unemployment, Botswana's Finance Ministry forecasts a diamond market rebound and GDP growth of 3–4% this year.
Boko emphasised the need for economic diversification focusing on the green economy, climate-smart agriculture, renewable energy and expanding the mining sector.
Boko also commented on the geopolitical landscape, noting that the US' foreign policy shift under President Donald Trump might not pose a threat.
He highlighted the potential influence of China in Africa, stating: "(The) West has every reason to play its part in Africa, because if it doesn't, there are others who will want to play some part. We have China in the wings, and it is seeking... to exert influence on Africa."
