Botswana and De Beers have finalized a new 10-year diamond sales agreement, allowing Botswana to sell 30% of its diamonds initially, increasing to 50% by 2035. This deal seeks to halt the decline in diamond revenue, which has fallen significantly in recent years. The agreement is recognized as a step towards stable partnerships in the industry and is set to be officially signed by the end of February.

Botswana and the diamond industry leader, De Beers, have successfully concluded an agreement for the sale of rough diamonds over the next ten years. This agreement, which has its roots in negotiations that commenced in 2019, allows Botswana to sell 30% of the diamonds mined through their joint venture initially, with the percentage set to increase to 50% by the year 2035.

This new arrangement is pivotal, especially given the notable decline in diamond revenue from $7 billion in previous years to approximately $4.2 billion in 2023, primarily attributed to diminishing demand for diamonds. The deal has received positive feedback from key stakeholders within the diamond sector, highlighting its significance for economic recovery.

De Beers CEO, Al Cook, has endorsed the deal, viewing it as a reinforcement of long-term, stable partnerships within the industry. Furthermore, Botswana’s Minister of Minerals, Bogolo Kenewendo, announced that the official signing of the agreement will occur before the conclusion of February, with the possibility of a five-year extension following its initial term.

In summary, the newly established agreement between Botswana and De Beers signifies a strategic partnership aimed at revitalizing the diamond sector while enhancing Botswana’s sales capabilities. The increase in sellable diamonds is expected to restore revenue levels and strengthen economic foundations amidst challenges in the global diamond market. The accord has been well received by industry leaders, reflecting a commitment to sustainable practices and long-term growth.

Original Source: www.africa.com