Is Botswana Getting A Raw Deal From De Beers Diamonds - The World News Review

The central argument for Botswana getting a "raw deal" revolves around value addition.

Historically, De Beers mined the rough diamonds in Botswana and shipped them to London, where they were sorted, aggregated, and sold to manufacturers. The high-value activities—sorting, cutting, polishing, and retail—happened elsewhere, keeping the bulk of the economic profit outside Botswana’s borders.

While De Beers moved its "sights" (sales events) to Gaborone in 2013, a symbolic victory for the nation, critics argue this was a logistical shift rather than a structural economic transformation. Botswana still sells the rough stones. The lucrative downstream industries—where a rough stone becomes a polished jewel sold in a boutique in New York or Hong Kong—remain largely out of reach for the Batswana economy. The central argument for Botswana getting a "raw

The government is now demanding a larger share of the rough diamonds to be processed locally, aiming to turn Botswana into a global diamond hub, not just a supplier of raw materials.

While the argument for a better deal is strong, the "raw deal" narrative has a flip side. De Beers provides more than just a checkbook. They provide the global marketing machine—the famous "A Diamond is Forever" campaigns—that sustains the value of the stones. While De Beers moved its "sights" (sales events)

If Botswana seizes a larger share of production to sell independently on the open market, they inherit the risk of market downturns. Without De Beers’ ability to stockpile diamonds during market slumps to stabilize prices, Botswana’s economy—which relies on diamonds for over 80% of export earnings—could become dangerously volatile.

To gauge if Botswana is getting a raw deal, one must look at the historical trajectory. In 1967, when the Orapa pipe was found, Botswana had 12 kilometers of paved road. Sir Seretse Khama, the founding president, made a prescient deal with Harry Oppenheimer. He accepted a lower immediate royalty in exchange for the "reserved right" to buy into the asset later. The government is now demanding a larger share

That later is now. The new generation of Botswanan leadership believes the colonial-era training wheels must come off.

Yet, the risk is immense. Without De Beers’ sales network, could Botswana manage the "price integrity" of its gems? If Botswana takes 50% of its rough and supplies go up while De Beers reduces marketing support, the value of rough diamonds could plummet, hurting everyone.