How Botswana is trying to get a large share of its diamond wealth Botswana's diamonds bring in 80% of the country's income from out...
How Botswana is trying to get a large share of its diamond wealth
Botswana's diamonds bring in 80% of the country's income from outside the country and 50% of the country's total income.
Calistus Bosaletswe: Diamonds can last forever and do nothing, but there is no strong link between the country in Africa that makes the most diamonds and the business that mines the most diamonds. global.
Botswana is trying to sign a long-term deal with the De Beers pearl mining company to keep the trade agreement from 2011 in place. However, there are worries that the company is running out of money because of the project allocation.
Debswana is a deal between the government and De Beers to share the diamonds equally (50/50). This agreement will end in 2021.
Both sides said that the corona virus made it impossible for them to come to an understanding, so the agreements were extended until June 30 of this year.
Botswana's President Mokgweetsi Masisi has asked for a big share of the diamond mining. Experts say this is unlikely, but some hope that the discussion will be good for Botswana.
Botswana's President Masisi has said that if Botswana doesn't make money from its deal with De Beers, it will end the deal.
Roman Grynberg, who used to work at the Centre for Research and Development in Botswana, thinks that she has no say in how the deal will turn out.
Grynberg, a former economist at BIDPA, a diamond research firm that he and two of his colleagues ran, warned in a paper called "Gem Quality Diamonds and Their Potential Impact on the Botswana Economy" that you don't need to do a long study to see that Botswana is going to get out of the problem of making precious stones that are made in a lab.
He said that he is afraid that the fact that the scientific study lab makes a lot of diamonds is killing the market that Botswana mines for diamonds, which has hurt Botswana's economy over the last 10 years.
How do you split a diamond?
Botswana gets 80 per cent of its foreign exchange and 50 per cent of its total income from diamonds. In 2020, the country sent out diamonds worth $4 billion.
The Debswana deal was made between the government of the country and the De Beers company, which has more than 5,000 workers and many contractors.
The deal from 2011 says that De Beers will get 90% of the rough diamonds that are mined in Botswana. Botswana's income will have gone up by 25% by 2020.
There are rumours that Botswana needs more than 25% of the gems that the Debswana company brought in and sold through the Okavango Diamond Company.
Botswana's president, Mokgweetsi Masisi, said that the agreement from 2011 was not fair to his country. He said that Botswana needs a big part of the diamond resources.
Moagi Lefoko, the Minister of Minerals and Natural Resources, was left out of talks between the government and the De Beers company after they said in a joint statement that no one would talk about the problem.
A former economist at the United Nations Development Programme named Obuseng Sennye said that Botswana could "demand" a bigger part of the resources.
Some people say that young people don't like lab-made diamonds and that this will be a problem for Botswana diamonds. He said that he didn't agree with this.
"Change is not a big deal for Pearls, even if it does happen. "Income, especially among young people, and the desire to use expensive things and pearls are some of the main things that are being treated," he said.
Sennye thinks that young people are not only smarter than older people but also make more money. "People are spending more on luxury, so I think the diamond market will grow," he said.
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