Al Cook, CEO of De Beers Group, hailed the agreement as "the greatest public-private partnership in the world."
The previous agreement, which expired in 2021, was initially set for renewal in 2018. However, discussions were delayed due to the Covid-19 pandemic and other setbacks, leading to temporary extensions. A provisional deal was reached in June 2023, followed by an outline agreement in October.
Finalizing the deal was left to newly elected President Duma Boko after his predecessor, Mokgweetsi Masisi, was unexpectedly unseated in the November 2024 general election.
The agreement is crucial for both parties: Botswana’s economy, where diamonds account for approximately 80% of exports, and De Beers, which sources 70% of its diamonds from the country.
As anticipated, the deal grants Debswana—a 50/50 joint venture between De Beers and the Botswana government—mining licenses valid until July 2054. It also increases the share of Debswana’s rough diamond production allocated to Okavango, the state-owned sales company. Okavango’s share will rise from the current 25% to 30% for the first five years, then to 40% in the following five years. If the agreement is extended beyond that, a 50/50 split is possible.
Additionally, De Beers has committed an initial $75 million investment into a Diamonds for Development Fund, with further contributions tied to Debswana’s financial performance.
Botswana’s minerals minister, Bogolo Joy Kenewendo, expressed optimism about the deal, stating: "We hope these agreements will bring stability and restore market confidence in the diamond industry. Our renewed partnership with De Beers will drive development through diamonds and create a brighter future for Batswana."
Al Cook echoed this sentiment, emphasizing: "These are groundbreaking agreements. The partnership between Botswana and De Beers has long been recognized as the world's greatest public-private collaboration, and we are now strengthening and enhancing it for the future."
