Botswana: New deal between state and De Beers far from complete
De Beers and the Botswana state have yet to renew their successful diamond partnership.
The Covid-19 pandemic and the government's desire to increase its earnings would delay negotiations. A new agreement must be quickly found, however, as the previous one expires in December.
Initially scheduled for April, the renewal of the partnership agreement between diamond giant De Beers and the Botswana state is far from being finalized.
According to information relayed by Reuters, the Covid-19 pandemic and the resulting travel restrictions have delayed negotiations. "The ideal situation would be to conclude the negotiations by December, but there is no guarantee that this will happen," said Mmetla Masire, a senior official at the Ministry of Mineral Resources, Green Technology and Security. energetic.
Indeed, in addition to the accumulated delay, points of dissension still keep the partners away. The government, which currently receives 15% of revenue from diamonds mined in the country, would like a bigger slice of the pie. Either way, both sides need to speed up talks to find common ground, as a stalemate would be bad for both sides.
De Beers produces around 70% of its diamonds in Botswana and the government, through regular sales sessions around the country, generates thousands of jobs for citizens. The diamond sector also accounts for a fifth of the country's GDP and more than half of the country's foreign exchange.
As a reminder, the partnership between De Beers and Botswana is materialized by Debswana, a 50/50 joint venture, responsible for the company's operations in the country.
Cassien Tribunal Aungane, Editor
The Covid-19 pandemic and the government's desire to increase its earnings would delay negotiations. A new agreement must be quickly found, however, as the previous one expires in December.
Initially scheduled for April, the renewal of the partnership agreement between diamond giant De Beers and the Botswana state is far from being finalized.
According to information relayed by Reuters, the Covid-19 pandemic and the resulting travel restrictions have delayed negotiations. "The ideal situation would be to conclude the negotiations by December, but there is no guarantee that this will happen," said Mmetla Masire, a senior official at the Ministry of Mineral Resources, Green Technology and Security. energetic.
Indeed, in addition to the accumulated delay, points of dissension still keep the partners away. The government, which currently receives 15% of revenue from diamonds mined in the country, would like a bigger slice of the pie. Either way, both sides need to speed up talks to find common ground, as a stalemate would be bad for both sides.
De Beers produces around 70% of its diamonds in Botswana and the government, through regular sales sessions around the country, generates thousands of jobs for citizens. The diamond sector also accounts for a fifth of the country's GDP and more than half of the country's foreign exchange.
As a reminder, the partnership between De Beers and Botswana is materialized by Debswana, a 50/50 joint venture, responsible for the company's operations in the country.
Cassien Tribunal Aungane, Editor
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