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The recent announcement of the Rough Diamond Sales Agreement between the Government of Botswana and De Beers Group has sparked intense debate, with political parties staking their claims on its success. While the current administration under the Umbrella for Democratic Change (UDC) presents the deal as a landmark achievement, the Botswana Democratic Party (BDP) argues that the foundation for this agreement was laid long before the change in government.
The BDP asserts that the agreement is a culmination of years of careful negotiation, strategy and foresight under its leadership. According to the party, the key commercial terms were secured on 30 September 2023, when the BDP led administration successfully negotiated and signed the Heads of Terms Agreement with De Beers. This framework ensured that Botswana would receive a greater share of its diamond wealth, setting the stage for the finalisation of the agreement. Further reinforcing this timeline on 1 June 2024, De Beers, alongside the then Minister of Minerals and Energy, Lefoko Moagi, publicly confirmed that negotiations had been concluded. The BDP therefore challenges the UDC’s claim of having swiftly secured the deal within its first 100 days in office, arguing that high value agreements of this magnitude demand years of intricate discussions, planning and expertise.
Beyond the political wrangling, pressing concerns remain about the financial details of the agreement, particularly regarding De Beers’ outstanding tax obligations to Botswana. The BDP questions whether the UDC government has waived the taxes owed by De Beers and if so, the exact amount involved, with estimates ranging from P4 billion to as high as P14 billion. It also calls for clarity on the terms under which any waiver may have been granted. Under the BDP led government, the only unresolved issue in negotiations was the payment of this significant tax amount. If the UDC has indeed waived it, the BDP argues that this would represent a reckless financial decision, potentially depriving Botswana of critical funds needed for national development, including healthcare, education, infrastructure and job creation.
While the political dispute over credit for the deal continues, the broader significance of the agreement cannot be overlooked. Botswana’s diamond industry remains a key driver of economic growth and ensuring maximised national benefits from such agreements is critical. The deal holds the potential to bolster beneficiation opportunities, expand revenue streams and secure the country’s economic future. However, transparency and accountability will be essential. Batswana deserve clear answers on how their national resources are being managed and whether this agreement truly serves their best interests. The government must address these outstanding tax concerns, providing full disclosure on the financial arrangements made with De Beers. As the dust settles on this agreement, the key question remains, will this deal be remembered as a transformative economic victory for Botswana or as a missed financial opportunity clouded by political contestation?
