The claim that is getting a "raw deal" from De Beers has been a central theme in recent high-stakes negotiations, driven by the country's desire to capture more value from its natural resources
To understand the current friction, one must look at the current sales agreement, set to expire soon. The prevailing myth is that Botswana (through its state-owned entity, Okavango Diamond Company) and De Beers are equal partners—a 50/50 joint venture known as Debswana. The claim that is getting a "raw deal"
Consider this: A rough diamond dug in Botswana might be cut in Surat, India, polished in Antwerp, set in New York, and sold to a bride in Tokyo. Of that final retail price (which could be 5x to 10x the rough value), Botswana currently captures only the cost of extraction plus half the rough profit. Of that final retail price (which could be
The government of Botswana has taken steps to increase its share of the revenue, but more needs to be done to ensure that the country benefits from its rich diamond deposits. The government must also prioritize the needs of local communities and ensure that the industry is operated in a responsible and sustainable manner. polished in Antwerp
The claim that is getting a "raw deal" from De Beers has been a central theme in recent high-stakes negotiations, driven by the country's desire to capture more value from its natural resources
To understand the current friction, one must look at the current sales agreement, set to expire soon. The prevailing myth is that Botswana (through its state-owned entity, Okavango Diamond Company) and De Beers are equal partners—a 50/50 joint venture known as Debswana.
Consider this: A rough diamond dug in Botswana might be cut in Surat, India, polished in Antwerp, set in New York, and sold to a bride in Tokyo. Of that final retail price (which could be 5x to 10x the rough value), Botswana currently captures only the cost of extraction plus half the rough profit.
The government of Botswana has taken steps to increase its share of the revenue, but more needs to be done to ensure that the country benefits from its rich diamond deposits. The government must also prioritize the needs of local communities and ensure that the industry is operated in a responsible and sustainable manner.