Botswana President Duma Boko is working to finalize a long-delayed diamond sales agreement with De Beers while focusing on diversifying the country’s economy beyond its reliance on diamonds.
Speaking at the World Economic Forum in Davos, Switzerland, Boko expressed hope that the deal with De Beers could be signed as soon as Friday. “I’m hoping it is tomorrow. I mean it literally,” he said. The agreement, which would increase Botswana’s share of diamonds from the Debswana joint venture to 50% over the next decade, had been stalled under the leadership of his predecessor, Mokgweetsi Masisi. Currently, De Beers purchases 75% of Debswana’s diamond output.
Boko also mentioned that discussions to increase Botswana’s 15% stake in De Beers were going well, as Anglo American, which owns De Beers, seeks to restructure its business and divest from the diamond giant.
Botswana, one of Africa’s wealthiest nations, has long relied on diamond exports, but the country has used its diamond revenue to invest in public services like health and education, which has helped raise its GDP per capita above the sub-Saharan African average. Despite these successes, analysts have pointed to rising economic dissatisfaction, particularly among the youth, as a factor in the defeat of the BDP in last year’s elections.
Boko, now leading a coalition government, has vowed to address these issues, pledging to raise the minimum wage, improve social services, and create a more independent judiciary. However, he faces an uphill battle. The country’s economy likely contracted in 2023 due to a downturn in global diamond prices, and unemployment has risen. The finance ministry expects a recovery in the diamond market, with GDP growth forecast at 3-4% for 2024.
“We are looking to power the economy of Botswana. We’re looking to diversify it,” Boko said, pointing to initiatives focused on renewable energy, climate-smart agriculture, and expanding beyond diamonds into other areas of mining.
