Despite these gains, critics and local leaders argue the nation remains vulnerable:
The debate over revenue sharing has been ongoing for several years. The government of Botswana has argued that it should receive a higher share of the revenue generated by the diamond industry, while De Beers has argued that its investment in the industry justifies its share of the revenue.
As of April 2026, Botswana has shifted away from a "raw deal" in its diamond partnership with De Beers by securing a 10-year agreement that raises the state’s share of rough diamonds, transitioning toward a 50/50 equity split by 2035. While this February 2025 deal increases local control, Botswana currently faces economic challenges, including a global supply glut, market volatility, and a substantial diamond inventory. For more information, visit Reuters .
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 Despite these gains, critics and local leaders argue
Historical context and the genesis of the partnership At independence Botswana was economically fragile, with limited infrastructure, human capital, and administrative capacity. The discovery of diamonds presented both opportunity and risk. The government’s initial negotiating position was weak—lacking technical expertise and facing a global industry dominated by De Beers’ marketing and distribution systems. In that context, the government negotiated a 50/50 joint venture (Debswana) rather than attempting unilateral extraction or an immediate nationalized industry. The deal offered Botswana immediate access to De Beers’ technical know-how, marketing channels, and investment capacity, and it guaranteed steady royalties and dividends.
By taking these steps, Botswana can ensure that it gets a fair deal from De Beers diamonds and that the industry benefits both the company and the country.
The coming months are critical. If Botswana secures a deal that gives it control over independent sales and a higher percentage of rough stones, it will set a new precedent for global resource nationalism. If it caves, the "gold standard" might start to look a little tarnished. While this February 2025 deal increases local control,
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."
Ultimately, the debate is no longer just about the split of revenue, but about the viability of the diamond market itself. As Botswana continues to face the reality of market shifts and the eventual depletion of its mines, its primary challenge is no longer just negotiating with De Beers—it is successfully diversifying its economy away from diamonds entirely.
Technical details of the Share public link LGDs are chemically and optically identical to mined
The sentiment that Botswana was getting a raw deal intensified during the multi-year negotiations for a new sales contract. Former President Mokgweetsi Masisi—and later his successor, —publicly lamented that Botswana had originally signed agreements out of "ignorance" when it lacked legal and diamond-valuation expertise.
During the high-stakes contract renewals, Masisi shocked the mining world by threatening to walk away from De Beers entirely if the corporate giant did not concede to Botswana's demands for a bigger slice of the value chain.