In a significant development for Botswana’s gem-dependent economy, President Duma Boko has confirmed that his government has finalized a diamond extraction and sales agreement with global mining giant, De Beers. This agreement, which was concluded last week, aims to bring stability and predictability to the country’s vital diamond industry.
Speaking to the media in Tanzania, President Boko revealed that the terms of the deal were finalized recently and will be officially announced in the near future. This comes after the President hinted at the imminent agreement during his participation at the World Economic Forum in Davos, Switzerland, just days prior.
The agreement stems from a provisional deal that was initially outlined by Botswana’s previous administration in July. Under the terms of the 10-year accord, the state-owned diamond trading entity is set to receive 30% of the output from De Beers’ operations in Botswana, a major contributor to the country’s economy. Additionally, the agreement includes a substantial development funding package of 10 billion pula (approximately $720 million), which is expected to significantly contribute to the nation’s development goals.
This deal marks a pivotal moment for Botswana, as diamonds remain one of the country’s most valuable resources. The agreement between De Beers and the government is poised to ensure continued growth and prosperity in the sector, benefiting both the nation’s economy and its citizens.
With the finalized agreement set to be announced in the coming weeks, the deal promises to provide clarity and certainty to all stakeholders in the diamond industry, reinforcing Botswana’s position as a global leader in diamond production and trade.
