Botswana has finalized a 10-year diamond sales agreement with De Beers, allowing the nation to sell 30% of rough diamonds initially, increasing to 50% by 2035. This deal addresses the decline in diamond revenues over recent years, from $7 billion to $4.2 billion in 2023. The agreement received positive feedback and will be formally signed by February 2024, with a five-year renewal option.
Botswana has successfully concluded a significant 10-year diamond sales agreement with the South African diamond powerhouse, De Beers, following extensive negotiations that initiated in 2019. This new accord allows the Botswana government to initially market 30% of the rough diamonds produced from their joint venture, with the percentage expected to rise to 50% by 2035. This strategic move is designed to counteract the downturn in diamond revenues, which have decreased from $7 billion annually to $4.2 billion as of 2023, attributed to diminishing consumer demand.
This agreement has received commendations from prominent figures in the industry, including De Beers CEO Al Cook, and has been well-received by the World Diamond Council. The deal illustrates a renewed dedication to foster enduring and stable partnerships within the diamond sector. Botswana’s Minister of Minerals, Ms. Bogolo Kenewendo, has announced that the formal signing of the contract will occur before the end of February 2024, with the potential for a five-year extension upon reaching its conclusion.
In summary, the newly established agreement between Botswana and De Beers signifies a proactive step towards revitalizing Botswana’s diamond revenue while enhancing its control over diamond sales. This accord not only aims to stabilize the country’s economic outlook but also reinforces the importance of sustained collaboration within the diamond industry.
Original Source: www.africa.com
