Botswana's New President Reignites Hopes on De Beers Deal
November 10, 24
(IDEX Online) - Botswana's new president hopes to mend his government's fractured relationship with De Beers and finally ink the deal negotiated, but not signed, by his predecessor.
Duma Boko ousted Mokgweetsi Masisi in the 30 October general election, ending 58 years of uninterrupted rule by the Botswana Democratic Party.
In his first speech as president, Boko said: "We have to try to safeguard the goose that lays for us the golden egg."
Diamonds account for around 80 per cent of Botswana's export earnings and drive the economy of a south African nation that discovered diamonds (at Orapa) just six months after gaining independence from Britain in 1966.
A new 10-year agreement between Botswana and De Beers was finally reached in July 2023 after Masisi repeatedly threatened to walk out. Both sides went on to sign a preliminary "heads of terms" but the final contract remains on the table.
Boko says having a deal that is still unsigned is a "very dangerous position to be in as a country".
His government holds a 15 per cent share in De Beers. The remaining 85 per cent belongs to Anglo American, which is seeking to sell it off and focus on more profitable assets.
De Beers and Botswana have a 50/50 share in the miner Debswana. Botswana receives 25 per cent of the rough diamond output.
The unsigned agreement would see that percentage increase to 50 over the coming decade.
Screengrab shows Botswana's new president, Duma Boko.