Botswana President Mokgweetsi Masisi warned on Sunday (February 12th) that his country might sever ties with diamond giant De Beers if talks to renegotiate a sale deal prove unfavorable for his country.
The 2011 sales agreement governing the marketing terms of diamonds produced by Debswana, an equal joint venture between the government and the South African company, expired in 2021. It was extended by the parties, who invoked the Covid-19 epidemic to explain the delay in concluding negotiations, and will end on June 30, 2023.
Speaking at a Botswana Democratic Party (BDP) rally in his home village of Moshupa, Mr Masisi warned: “If we don’t achieve a win-win situation, each party will have to pack up and go home. » Under the 2011 deal, mining company De Beers received 90% of the rough diamonds produced, while Botswana, Africa’s top diamond producer, received 10%. In 2020, Botswana’s share was increased to 25%.
Today, “we got a glimpse of how the diamond market worked and discovered that we had received less than what we were supposed to receive”said Mr. Masisi, who spoke in both English and Tswana. “We also discovered that our diamonds bring in a lot of profit and that the agreement [de 2011] was not favorable to us”he added, before warning: “We want a bigger share of our diamonds. Business cannot continue as before. »