The deal, which follows six years of negotiations, increases Botswana’s share of rough diamond sales from 25% to 30% over the first five years, with a potential rise to 40% in the subsequent years.

In return, De Beers has secured a 25-year extension on its mining licenses in Botswana, ensuring the company’s continued operations in one of the world’s most valuable diamond-producing nations.

The agreement is particularly significant given the economic importance of diamonds to Botswana, which account for roughly 80% of its export revenues and contribute a quarter of its Gross Domestic Product (GDP).

This development comes when the diamond industry faces challenges due to declining global sales and the impact of sanctions on Russian diamonds.

To address these concerns, De Beers has pledged an initial $75 million investment in a diamond development program to boost the marketing and value of Botswana’s diamonds.

Government officials and economists have welcomed the deal, recognizing its role in ensuring economic stability and maintaining Botswana’s global influence in the diamond trade.

However, some civil society groups have called for greater efforts to ensure that mining-affected communities directly benefit from the new arrangement.

As the world’s leading producer of diamonds by value and the second-largest by volume after Russia, Botswana is strategically positioning itself for long-term economic sustainability.

The agreement is also seen as a testament to the government’s commitment to securing a prosperous future for the nation’s diamond sector amid shifting global market conditions.