A new extensive diamond partnership between Botswana and De Beers Group sustains both mining activities and strategic sales agreements for improved economic development in the country.
Debswana’s mining licenses get extended for 25 years while the sales agreement stretches for 10 years with an optional five-year extension period.
The country ranks first worldwide in diamond production value and simultaneously stands out as an industry pioneer in moral diamond mining practices and financial stability.
Liberal Democrat Bogolo Joy Kenewendo highlighted how the agreement would elevate trust between markets and boost economic expansion while showing confidence about diamond beneficiation opportunities for Botswana.
The agreement stipulates that Debswana’s diamond sales system will transition through stages to increase local operational authority. During the first five years, the Botswana state-owned diamond trader Okavango Diamond Company (ODC) will sell 30 per cent of Debswana’s rough diamonds alongside Division De Beers managing the remaining 70 per cent.
The agreement stipulates that ODC’s diamond sales authority will grow from 30% to 40% within five years up to a level of 50% when the agreement fulfils a ten-year duration.
The signature feature of this agreement is the Diamonds for Development Fund that De Beers has launched with an initial BWP 1 billion ($75 million) funding stake.
Botswana’s Vision 2036 and National Development Plan guide the support that the fund provides for Botswana’s economic transformation and job market expansion as well as industrial sector development.
The investment from De Beers includes setting up local diamond beneficiation through establishing manufacturing, grading and educational facilities in Botswana. The organizations have declared their intention to conduct collaborative marketing plans to sustain ethical diamond demand from consumers.
Al Cook from De Beers Group declared the agreement preserves a globally renowned public-private partnership that firmly establishes Botswana as an international diamond centre.
Through this groundbreaking business arrangement, Botswana will simultaneously generate maximum profit from its natural resources while establishing financial sustainability.
