04 Jul 2023

 The new agreement entered into in principle by the government of Botswana and diamond mining giant, De Beers Group will help elevate the country’s status in diamond mining and the industry’s value chain.

The extension of the partnership will assist in  revenue generation, creation of jobs while supporting the creation of a knowledge based economy.

 “We came up with the Diamonds For Development fund, which would help in accelerating the pursuing of different sectors for economic diversification. The agreement is that De Beers will contribute P1 billion upfront at the beginning of the 10 year duration, and ultimately up to P10 billion, a signification contribution,” the Executive Head of Human Resource for the De Beers Group Ms Malebogo Mpugwa, said during a press briefing held in Gaborone yesterday. 

While stressing that the details of how the fund would be managed were still to be finalised, she said the funds could be used to invest in areas such as agriculture, tourism and other sectors that have the potential to be commercially viable as modes of diversifying Botswana’s economy and creating jobs.

“Also, we have committed to entering into a partnership with government to participate in international diamond exploration in countries of mutual interest that we agree on, as well as in Botswana itself. This would ensure that the country continues to benefit from diamonds even after diamond mining is exhausted domestically,” Ms Mpugwa said.

She added that the agreement further looked at elevating Botswana’s position in the diamond industry, with De Beers due to provide 30 percent of Debswana diamond production at the start of the contract, progressively increasing up to 50 percent, to the state-owned Okavango Diamond Company.

“We looked at making Botswana more of a leader in the industry. This gives government opportunity to increase its footprint in the diamond industry as well as beneficiation. We have also agreed to the establishment of a diamond jewellery facility alongside a sight holder,” Ms Mpugwa revealed.

She added that De Beers would further contribute through a Botswana Entrepreneurship Programme to help develop skills particularly within the diamond industry, and contributing to various areas of vocational training.

Mr Paul Rowley, De Beers Group Executive Vice President- Diamond Trading, revealed that securing a 25-year expansion of diamond mining licenses for Debswana, for the period 2029 to 2054 would ensure greater certainty for their market.

“Securing natural diamond production in the 25 years beyond 2029 is important for De Beers, its majority shareholder Anglo American, as well as the global diamond market. De Beers has been in the diamond industry for 135 years, and important to its existence is stability, so maintaining a strong confidence is vital. The De Beers partnership with Botswana has spanned 54 years, mutually beneficial and the envy of many, and has been a model some would like to follow, as does Namibia for example,” Mr Rowley said.  ENDS