Getting A Raw Deal From De Beers Diamonds - The World News - Is Botswana

The raw deal is not just about money. It is about control. For 60 years, a nation blessed with the world’s hardest gem has been treated like a soft touch. As President Masisi told Parliament last month: "We are not asking for a favor. We are taking what is ours."

LGDs are chemically identical to mined diamonds but cost a fraction of the price. As consumers—particularly Millennials and Gen Z—prioritize price and ethical transparency, the demand for natural stones has softened. Some analysts believe that by the time Botswana gains full control of 50% of its production, the global price for natural rough diamonds may have collapsed to a point where the increased volume cannot offset the lost value. Transparency and the "Middleman" Problem The raw deal is not just about money

The result is a lopsided dependency. Botswana’s economy is a diamond monolith—roughly 30% of its GDP, 50% of government revenue, and 80% of its exports are tied to these stones. When De Beers decides to flush the pipeline or lower prices, Botswana bleeds. As President Masisi told Parliament last month: "We

To gauge if Botswana is getting a raw deal, one must look at the historical trajectory. In 1967, when the Orapa pipe was found, Botswana had 12 kilometers of paved road. Sir Seretse Khama, the founding president, made a prescient deal with Harry Oppenheimer. He accepted a lower immediate royalty in exchange for the "reserved right" to buy into the asset later. Some analysts believe that by the time Botswana

Perhaps the most significant "raw deal" isn't about the diamonds themselves, but the dependency they created. Botswana’s economy is a "monoculture." When the diamond market sneezes, Botswana catches a cold.

The current deal is a relic of a pre-synthetic, pre-internet monopoly era. In a world where De Beers’ market share has shrunk from 90% to around 30%, Botswana no longer needs a guardian; it needs a logistics partner.