For decades, the relationship between the Republic of Botswana and the diamond giant De Beers has been hailed as a quintessential model of cooperation between a developing nation and a multinational corporation. Often described as a "marriage," this partnership transformed Botswana from one of the poorest nations in the world at independence in 1966 into an upper-middle-income economy.
: Most rough diamonds were historically shipped abroad for cutting and polishing in hubs like India, depriving Botswana of higher-value manufacturing and retail jobs. Alleged Profit Shifting A Rough Cut
3. The "Aggregation" Dispute Currently, diamonds from Botswana are often mixed with stones from South Africa, Canada, and Namibia before being sold. Botswana wants the right to sell its own stones independently—specifically through the state-owned Okavango Diamond Company (ODC) . De Beers is resisting, arguing that aggregation allows for better pricing consistency. : Most rough diamonds were historically shipped abroad
In a landmark 2011 deal, Botswana successfully pressured De Beers to move its sorting and aggregation operations from London to Gaborone. This was a massive victory for the concept of "beneficiation"—the process of adding value to raw materials within the country of origin rather than exporting them raw. This led to the establishment of the Diamond Trading Centre (DTC) in Botswana. Botswana wants the right to sell its own
