While critics have had reason to slam the 50-50 partnership between De Beers and the Government of Botswana that is Desbwana, it has not been loot and gloom as we all know. Besides the much-touted goodies that have flowed from the Debswana arrangement, there is another positive aspect that gets little attention. Few people acknowledge that despite its flaws, Debswana is arguably the most successful and most enduring Public-Private Partnerships (PPP) in Africa, if not the world. In Africa, minerals have been associated with unending wars, massive looting, genocide and bloody dictatorships. This has led commentators to wax lyrical about the 'Mineral Curse' in Sub-Saharan Africa. Many African countries like Zambia, the DRC, Angola, Nigeria, Gabon, Equatorial Guinea, Ghana and Sierra Leone have suffered from economic ruin, war and massive corruption mainly because the abundant natural wealth under their soil became a curse instead of a blessing. One contributing factor to this blessing-turned-curse tragedy is the nationalisation that became so fashionable in Africa from independence till the advent of economic liberalisation in the 1980s. Driven by a desire to control and loot state assets, the post-independent Africa elite engaged in a frenzy of nationalisation that stifled private sector growth and put paid to efficiency. Either the state took 100 percent control of activities like mining or set up poorly managed parastatals to run them. The end result was perennial war, unabated looting and economic disaster. As the rest of Africa was plundering its mineral wealth through nationalisation and mismanaged parastatals, Botswana chose the PPP path and stuck to it. Moreover, the wealth from the Debswana partnership was used wisely and did not act as a catalyst for unnecessarily grandiose projects and an orgy of looting. Through Debswana, Botswana has topped the world diamond sales league by value. Critics may say that other countries in Africa (Ivory Coast is a good example) have achieved the same status with other natural wealth with or without a 50-50 PPP. But the difference is that the fruits from the Debswana PPP have been channelled to successfully develop a once dirt-poor country. Of course, the fact that the Debswana arrangement has worked for Botswana does not mean that we close our eyes to its unedifying aspects. Like all big corporates, Debswana has had its negative influence on the Botswana state, citizens and residents. It has been pointed out that Botswana is not getting its fair share from the diamond wealth created by Debswana. The negotiations between government and De Beers have been maligned for being a mismatch favouring the latter while the company's dabbling in local politics was exposed a few years ago.
Others have not been happy about Debswana's mining activities vis-‡-vis the relocation of the Central Kgalagadi Game Reserve (CKGR). But the broad picture indicates that in comparative terms, the Debswana arrangement has worked well for Botswana. Crucial in this success has been fairly good management and the fact that our leaders have not been corporate raiders and pirates voraciously feeding off state resources like famished hyenas.
