De Beers vs Government of Botswana: What happens next?

Unlike in the past, these negotiations have generated interest both locally and internationally due to several potentially damaging public disclosures on specific aspects of the commercial terms of the agreement, which in the past would ordinarily be subject to non-disclosure clauses.

Underpinning these negotiations, is the government’s demand for more, meaning increase by another 25% of its current share of the Debswana mined rough diamonds and its coincidental partnership and investment in HB Antwerp. The latter move by government has been viewed by many analysts internationally as economic suicide for the country given the choice of partnership with a novice diamond trader over a long and trusted partner in De Beers. This was further exacerbated by remarks by His Excellency the President on government’s potential to resile from the agreement.