26 Feb 2025

The conclusion of the Rough Diamonds Sales Agreement between the Botswana government and De Beers Group after protracted negotiations that took place over several years cements a model public private partnership that has stood the test of time.

These sentiments were echoed by Vice President who is Minister of Finance, Mr Ndaba Gaolathe as well as De Beers Group CEO, Mr Al Cook during a glittering ceremony to toast the new deal in Gaborone on Tuesday.

Mr Gaolathe said the two sides entering the agreement had separately and collectively contributed to the global diamond industry landscape.

He acknowledged that more than any other private company, De Beers had shaped the diamond industry in over a century and half since 1870, being an industry leader in mining, diamond cutting and polishing as well as sales.

Mr Gaolathe said after De Beers discovered diamond deposits in Botswana post independence, the country’s government was proactive in ensuring a mutually beneficial deal between the company and state, and in investing mineral revenue in transforming the nation’s socio-economic trajectory.

“To those who have come before us, we give thanks. Our enduring union is more than a transactional, it is a partnership in excellence, a global model for a public-private partnership that transforms society.”

Mr Gaolathe said the signing of the latest agreement would allow Botswana to continue growing its participation in the global diamond space and investing in improving the livelihood of Batswana.

“More than ink on paper, it’s a declaration of faith and confidence as we ensure every Motswana has access to development. Under President Duma Boko Botswana wil taking its rightful place in the global diamond space and in citizen empowerment,” Mr Gaolathe remarked.

He thanked the permanent secretary to the president, Ms Emma Peloetletse and the government negotiating team for their hard work during the negotiations, and the Minister of Minerals and Energy Ms Bogolo Kenewendo for working to ensure completion of contract.

Mr Gaolathe further thanked sight holders and others in the diamond ecosystem and urged them to continue supporting the industry, which he said touched the lives and livelihoods of ordinary people in the country.

“People of Botswana this belongs to you, diamonds are not just commodities but a catalyst for development, for education, healthcare, prosperity for all,” said Mr Gaolathe.

For his part, Mr Cook said the relationship between Botswana and De Beers had been “the world’s finest public private partnership”

He said soon after geologists discovered the diamond pipe at Orapa in the 1960s, the then De Beers CEO Sir Harry Oppenheimer wrote to colleagues “this could transform the fortunes of Botswana.”

He said such prophetic words had since came to a practical realisation through the wise leadership and prudent management of resources by successive Botswana governments who created thousands of jobs in the diamond value chain.

Mr Cook said diamond revenue built schools, clinics, roads and other critical infrastructure, helped the country fight HIV/AIDS and later the COVID-19 pandemic and protected the Okavango waterways that were a world heritage site.

“In August 1982, Sir Harry Oppenheimer once more stood shoulder to shoulder with former President Sir Ketumile Masire during a diamond recession, as a new mine, Jwaneng was beginning operations. He said then, we have the confidence in the future, not just in ourselves as De Beers, but in the government of Botswana,” Mr Cook said.

Mr Cook said in the four decades since 1982 De Beers’ confidence in investing in Botswana “remains greater than ever.”

He said through the P1 billion that would be provided upfront by the De Beers towards Botswana’s Diamonds for Development Fund, and the P1 billion annually accruing to P10 billion over ten years, a new diamond dream would be created.

The government would be able to create further value and support President Boko’s vision for the nation through the development fund, Mr Cook said.

Minister Kenewendo on the other hand said in the aftermath of the negotiations being completed, diamond industry stakeholders now needed to vigorously market natural diamonds in the face of competition from lab grown diamonds.

“Our Vice President in the recent Budget Speech said we have a collective responsibility to chart a new course towards the new Botswana as a paragon of unity prosperity in Africa. Now we have concluded the negotiations, the hard work start, to market the natural diamonds as the only diamonds that belong on jewelry pieces,” Ms Kenewendo said.

She said natural diamonds were authentic and created impact in the lives of ordinary people. “Our clarion call is for a partnership that ensures natural diamonds get back to their rightful place in the world.” ENDS