Botswana's president, Duma Boko, has announced a new diamond extraction and sales agreement with De Beers, aiming to stabilize the country's economy. The agreement follows concerns raised during Boko's election campaign about his predecessor's handling of negotiations with the diamond giant.
Botswana 's president, Duma Boko, who came to power in the October elections, has announced that his government has reached a diamond extraction and sales agreement with De Beers . This agreement aims to bring stability to Botswana 's economy, which heavily relies on the diamond industry. Terms were finalized by midnight on January 24th and will be publicly announced soon, Boko stated during an interview on Tuesday.
Botswana, the world's leading producer of diamonds by value, derives the majority of its income from this sector. Most of Botswana's diamonds are mined by Debswana, a joint venture between Anglo American Plc's De Beers unit and the government. \Boko, speaking from Dar es Salaam, Tanzania, where he was attending an energy conference, confirmed that the issue with De Beers had been resolved. He had previously hinted at an imminent agreement at the World Economic Forum in Davos, Switzerland, reiterating his campaign promise to finalize the deal. During his election campaign, Boko criticized his predecessor, Mokgweetsi Masisi, for his handling of negotiations with De Beers to renew the alliance that has spanned over half a century between Botswana and the world's largest diamond firm. He alleged that Masisi's approach had led De Beers to consider withdrawing from the agreement, prompting Boko to re-engage in talks. \Boko's Umbrella for Democratic Change coalition successfully unseated Masisi's Botswana Democratic Party, which had been in power since Botswana's independence from the UK in 1966. The new agreement, according to Boko, does not involve any significant changes, only minor adjustments. Under the provisional terms of a 10-year agreement announced by Botswana's previous administration in July, the state-owned diamond trader was to receive 30% of Debswana's output, while the government would secure 10 billion pula ($720 million) in development funding. Botswana, once a dry and underdeveloped nation, has transformed itself into Africa's richest country per capita thanks to the discovery of diamonds in 1967. However, a prolonged slump in the global diamond market and the challenge posed by lab-grown diamonds have negatively impacted its economy. Boko believes the agreement will restore confidence and pave the way for economic growth. The country plans to emphasize the natural origin of its diamonds and command a premium for their provenance. Diamonds will be marked to indicate their origin and the role their sale plays in national development. Boko also addressed the threat posed by lab-grown diamonds, stating, 'We appreciate the threat posed by lab-grown diamonds. I don't want to give them the privilege of calling them diamonds. Diamonds are natural.' He added, 'We will then market our diamonds in terms of their provenance and of the story behind the diamond.'
DIAMONDS BOTSWANA DE BEERS ECONOMY AGREEMENT PRESIDENT DUMA BOKO
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