Diamond sovereignty: Botswana’s bold play with India and De Beers

Botswana continues to strengthen its influence on the global diamond industry, with a strong declaration of intent to increase shareholding in De Beers and the announcement of a direct market agreement with India.

During a recent four-day state visit to Botswana by Indian President Droupadi Murmu, the two countries formalised an agreement that will establish a direct and efficient diamond trade pathway between India and Botswana, thereby removing intermediaries.

Apart from increasing diamond revenue, the deal will strengthen Indo – Botswana relations and increase Botswana’s control on the global diamond supply chain. According to India’s Department of Commerce, trade between the two countries reached $436 million in 2024, driven by diamonds.

A direct sales channel will therefore be a significant advantage for both countries. The agreement highlights efforts by Botswana to reposition itself as a leading voice in the industry and shift from being a passive participant to an active controller of its natural diamonds.

In his State of the Nation Address (SONA), President Duma Boko lauded the trade agreement between Botswana and De Beers as a demonstration of “a shared commitment to long-term national prosperity, youth empowerment and sustainable economic diversification.”

Boko explained that the push to acquire a majority stake in De Beers was part of efforts to diversify the mining sector.

“Government will leverage its majority stake to align the industry with Botswana’s national development goal of economic diversification through beneficiation,” he said.

A majority stake in De Beers will give Botswana influence on how diamonds are mined, marketed and processed. Botswana will also be able to champion its Africa-first value addition model and keep more cutting, polishing, sales and midstream work in-country, thus creating more jobs. The De Beers bid was recently buoyed by Anglo American Chief Executive Officer (CEO) Duncan Wanblad’s

announcement that Botswana will sit at the top table during sale negotiations.

“Potential selected buyers will have to work with the government of Botswana in finalising an agreement that works not only for the potential buyers, but also for Botswana,” Wanblad said.

Botswana and De Beers reaffirmed their partnership earlier this year by signing a new agreement in which Botswana, through Okavango Diamond Company (ODC), will have access to a progressively increasing portion of Debswana diamonds, starting at 30 per cent, increasing to 40 per cent and ultimately to 50 per cent over the contractual period.

ODC is a rough diamond marketing company that is mandated to provide Botswana with a direct route to market for its rough diamonds and to support the country’s efforts to become a leading rough sourcing destination.

Botswana is also a founding signatory of the Luanda Accord, a landmark pledge by diamond-producing nations and industry leaders to collaborate to boost global consumer demand for natural diamonds.

Through the accord, leading diamond-producing countries have committed one per cent of annual diamond revenue to support the promotion of natural diamonds.

DESERT DIAMONDS CAMPAIGN

President Boko announced during the SONA that Botswana and De Beers have partnered to plan, fund and execute strategic marketing initiatives globally to enhance natural diamond desirability and demand.

“The campaign was recently launched in the United States through a partnership with key retailers ahead of the crucial end of year selling season,” Boko.

Unveiled at the JCK Las Vegas Show, the Desert Diamonds campaign is De Beers’ first ‘beacon’ in over a decade, supported by the mining giant’s largest category marketing investment, reportedly $100million.

The campaign is meant to promote the provenance of natural diamonds and their differentiation by emphasising their rarity, uniqueness, and connection to nature.

In a press statement, De Beers explained that the campaign will remind consumers why natural diamonds stand apart, with qualities no lab can reproduce.

LGDs LOSE THEIR LUSTRE

To President Boko, the Desert diamonds campaign and the acquisition of De Beers is a matter of economic sovereignty, a strategic move that will enable Botswana to better promote natural diamonds against lab grown diamonds (LGDs).

Together with Minister of Minerals and Energy Bogolo Kenewendo, President Boko has been on a global charm offensive to promote natural diamonds as symbols of ethical luxury, sustainable development and shared prosperity.

“Botswana’s natural diamonds carry stories of love, heritage, livelihoods, and authenticity. They represent a status symbol that is rooted in ethical sourcing and national development, unlike lab grown diamonds, which lack meaningful origin or emotional depth,” Boko said at the unveiling of House of Botswana at JCK Las Vegas.

At the same event, De Beers announced the closure of its LGD jewellery brand, a move that was hailed as a reinforcement of De Beers’ commitment to natural diamonds.