After four years of tense negotiations, the world’s biggest diamond miner and the largest producing country by value struck a landmark deal last month aimed at guaranteeing supply of the precious stones to the world’s jewellers and retailers for years to come.
The 10-year sales agreement and 25-year licence awarded to De Beers to mine in Botswana keeps alive a 54-year-old partnership. But critics say the new terms, which are much less favourable for the company, will ultimately backfire on the African nation.
President Mokgweetsi Masisi waged a populist campaign against De Beers with an eye to next year’s elections, pushing it into handing the country a bigger share of output in a further blow to the company’s one-time monopoly and continuing stewardship role in the $16.5bn industry.