Botswana is recalibrating its diamond strategy at a critical moment for the global gemstone market. Under newly elected President Duma Gideon Boko, the government has reopened discussions around its long-standing arrangement with De Beers, a partnership that has shaped the country’s economy for decades.
At the same time, the government is confronting another challenge: the rapid growth of synthetic diamonds and their impact on global demand for natural stones.
Diamonds account for the bulk of Botswana’s export earnings and a significant share of GDP. For years, mining operations through Debswana, the 50/50 joint venture between the Botswana government and De Beers, have underpinned public revenue, infrastructure spending and social programmes. However, debates over value distribution, marketing control and long-term beneficiation have intensified.
President Boko’s administration has questioned whether previous agreements fully reflected Botswana’s strategic interests. While Debswana remains jointly owned, De Beers historically controlled global marketing channels and diamond aggregation through its international sales structures.
Recent negotiations have focused on increasing Botswana’s share of rough diamond sales allocated to the state-owned Okavango Diamond Company, expanding local cutting and polishing, and strengthening beneficiation commitments.
Officials close to the talks indicate that Botswana seeks greater influence over pricing transparency, local value addition and long-term revenue security. Although negotiations remain ongoing, the shift signals a more assertive posture from Gaborone.
Botswana Diamond Policy in action
President Boko has framed the discussions as part of economic sovereignty rather than confrontation. The aim, officials say, is to secure sustainable returns for future generations in a changing market.
Parallel to these negotiations is a broader global development. Laboratory-grown diamonds are increasingly entering international markets, often at lower prices. While they are chemically similar to natural diamonds, they are produced in controlled environments within weeks rather than formed over billions of years underground.
In Parliament, Botswana’s Minister of Minerals and Energy, Bogolo Joy Kenewendo, addressed the issue directly during her response to the National Budget.
“In my response to the National Budget in the Parliament of Botswana, I reaffirmed our clear and unwavering position: the word ‘diamonds’ is reserved for natural diamonds,” she said.
She stressed that clarity in classification protects both consumers and producer countries.
“Several jurisdictions are moving in the same direction. India has formally distinguished lab-grown stones from natural diamonds in its trade and export classifications. Other major markets have strengthened disclosure requirements to ensure synthetic products are clearly labelled and not marketed in ways that confuse consumers. This growing international alignment reinforces a simple principle: transparency protects value.”
Kenewendo’s intervention comes as Botswana seeks to safeguard the premium attached to natural stones. Synthetic alternatives have expanded, particularly in jewellery markets targeting younger consumers.
However, the minister argued that rarity remains central to value.
“Technology has created alternatives, but it has not replicated rarity. A natural diamond is formed over billions of years beneath the Earth’s surface. That geological journey, that scarcity, cannot be manufactured in a laboratory.”
For Botswana, the stakes are high. Diamond revenues finance education, healthcare and infrastructure. Any erosion of price premiums affects fiscal stability.
“Protecting the clear distinction between natural diamonds and synthetics safeguards national revenue, investor confidence, and long-term economic resilience,” Kenewendo told Parliament.
Her remarks signalled a firm policy direction. Botswana intends to defend the branding of natural diamonds while engaging international partners to strengthen disclosure standards.
The government has also emphasised responsible sourcing and traceability as competitive advantages. Botswana’s diamonds are often marketed as conflict-free and ethically produced, attributes that differentiate them in global markets.
President Boko’s recalibration of the De Beers relationship, combined with a strong defence of natural diamonds, reflects a broader shift. Botswana appears determined to maintain control over its most valuable resource amid evolving global commodity markets.
The outcome of ongoing negotiations with De Beers will likely shape the country’s fiscal outlook. Meanwhile, the firm stance in Parliament underscores Botswana’s intention to protect the identity and value of its natural diamonds.
As synthetic stones gain visibility, Botswana’s strategy centres on transparency, sovereignty and long-term resilience. Whether these measures will fully shield the country from market pressures remains to be seen. What is clear is that the debate over diamonds is no longer just about mining, it is about ownership, value and the future of one of Africa’s most resource-dependent economies.
