Botswana President Duma Boko announced that the country was close to finalizing a new agreement with De Beers, with only a few minor issues left to resolve.
Speaking to Reuters at the World Economic Forum in Davos, Switzerland, last week, Boko expressed optimism about signing the deal imminently, stating, “I’m hoping it [will be signed] tomorrow. I mean it literally.” At press time, the parties had not yet signed the new contract. Discussions about increasing Botswana’s current 15% stake in De Beers are progressing well, the president, who assumed office in November, also noted.
Botswana’s economy, which is heavily reliant on diamond revenues, faced challenges last year due to a downturn in the global diamond market. Boko underscored the need to pursue other financial avenues to reach market stability, including climate-smart agriculture, eco-tourism and renewable energy, as well as the digital economy.
He also touched on the importance of the West’s role in counterbalancing China’s influence in the region.
“The West has every reason to play its part in Africa,” said Boko. “Because if it doesn’t, there are others who will want to play some part.”
De Beers’ and Botswana have extended the original contract several times since it expired in 2021. They signed an agreement in principle in June 2023 and a “head of terms” in October but have yet to finalize the deal.
Concerns about the stability of the partnership have loomed over the discussions. Shortly after taking office, Boko warned that De Beers was considering withdrawing from the negotiations.
The finalization of this agreement is expected to strengthen Botswana’s position in the diamond industry and to provide a significant boost to its economic prospects.
Image: Botswana president Duma Boko speaking at the Facets Conference in Belgium. (AWDC)
