De Beers needs stability. Botswana, however, needs diversification. The government has launched a $6 billion initiative to become a diamond hub, including building a new diamond technology park and a forensic gemstone center.
The vast majority of cutting, polishing, and jewelry manufacturing historically took place overseas. Botswana missed out on the lucrative downstream stages of the supply chain that create the most jobs and economic value. De Beers needs stability
However, as the mines grow deeper and more expensive to operate—such as the massive underground expansion project at Jwaneng—the old model of simply taxing raw extraction is no longer sustainable. The vast majority of cutting, polishing, and jewelry
To understand whether Botswana is getting a raw deal, one must look at the mechanics of the current arrangement. The relationship operates primarily through , a 50/50 joint venture between the government of Botswana and De Beers. To understand whether Botswana is getting a raw
As Anglo American, which owns 85% of De Beers, moves to divest the business as part of a broader restructuring, a golden opportunity has presented itself. Despite the diamond market being in one of its worst crises in history, Boko is pushing for a deal that would see Botswana take its destiny into its own hands, seeking a majority stake of more than 50%. The government has even hired financial advisors to study the potential acquisition.