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

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. Negotiations for a new deal have been ongoing for over a year, and they have turned ugly.

De Beers needs stability. Botswana, however, needs diversification. The government has launched a $6 billion initiative to become a diamond hub, including building a new diamond technology park and a forensic gemstone center. The result is a lopsided dependency

But looking forward,

But beneath the polish of that narrative, a seismic shift is occurring. As the global diamond market fragments, synthetic stones flood the market, and De Beers’ grip on the industry loosens, a burning question is echoing from the Kalahari Desert to the corridors of the London Stock Exchange: Negotiations for a new deal have been ongoing

In short, Gaborone wants to become Antwerp or Mumbai. It wants to process the diamonds where they are dug. The government has launched a $6 billion initiative