GABORONE, Botswana  (BG) – Botswana and De Beers on Tuesday signed new agreements securing the future of their half-century partnership in the diamond industry, President Duma Gideon Boko announced.

The agreements include a 25-year extension of Debswana’s mining licenses until 2054 and a renewed 10-year Sales Agreement for Botswana’s rough diamond production.

Under the new Sales Agreement, Botswana’s share of Debswana’s diamond production will gradually increase to 50%, strengthening the country’s position in the global diamond market.

The Okavango Diamond Company (ODC) will sell 30% of Debswana’s production in the first five years, while De Beers will sell 70%.

De Beers will sell 60% in the subsequent five years, and both parties will share the remaining 50% for the five-year extension period.

A key component of the agreement is the launch of the Diamonds for Development Fund, an initiative designed to drive economic growth, job creation, and diversification in Botswana.

The fund will receive an initial investment of BWP 1 billion ($75 million), with additional contributions from Debswana’s dividends.

The agreement also prioritizes local beneficiation, including investment in a diamond jewelry manufacturing facility, a grading laboratory, and a vocational training institute in partnership with industry leaders.

Botswana and De Beers will co-invest in global marketing programs to promote ethical and responsibly mined Botswana diamonds.

Botswana President Duma Gideon Boko highlighted the agreement’s significance on Twitter, urging the world to “choose the brilliance of a Botswana natural diamond—ethically sourced, responsibly mined, and a symbol of progress.”

This landmark deal reinforces Botswana’s commitment to sustainable economic development, ensuring the nation thrives as a leading diamond producer.

Significant diamond wealth, robust institutions, prudent economic management, and a relatively small population of about 2.5 million (2022), have made it an upper-middle-income country with an aspiration of becoming a high-income country.

Botswana’s reliance on diamonds and a public sector-driven model have made the economy vulnerable to external shocks, as diamonds contribute over 90% of total exports and are a major source of fiscal revenues, according to the World Bank.