A stable, committed partnership between Botswana and De Beers is critical to the long-term health of the natural diamond market, Botswana Vice President Ndaba Gaolathe said, arguing that uncertainty surrounding the relationship in recent years helped create an opening for lab-grown diamonds and weakened confidence in the sector.

Speaking Sept. 17 at Chatham House in London, Gaolathe described the Botswana–De Beers alliance as one of the most successful public-private partnerships of the modern era, crediting it with transforming Botswana from one of the world’s poorest countries at independence into a stable middle-income nation through investments in education, healthcare, infrastructure, and public institutions.

“The market understood there was this relationship which was prepared to do anything under the sun to ensure that the diamond continues to be resilient,” Gaolathe said, noting that De Beers and Botswana historically stockpiled rough diamonds during downturns and invested heavily in category marketing to support consumer demand.

According to Gaolathe, who also serves as Botswana’s minister of finance, questions that emerged several years ago about the future of the partnership contributed to uncertainty in the natural diamond market.

While he acknowledged that geopolitics, tariffs, and other factors also have affected the industry, he said that uncertainty over whether Botswana and De Beers would continue to act together in support of the category gave lab-grown diamonds an opportunity to gain market share.

Gaolathe’s remarks come as Anglo American seeks to sell its 85% ownership stake in De Beers. Botswana currently owns the remaining 15%, and President Duma Boko has previously indicated that the government wants a larger role in the company. Bloomberg reported Sept. 17 that Botswana may be willing to settle for increasing its stake rather than pursuing outright control.

Responding to questions about a possible investment, Gaolathe said Botswana’s ambitions extend beyond simple ownership. After decades in the industry, he said, the country has developed expertise across the diamond value chain, from mining and engineering to marketing and decision-making.

“Botwana has been in the diamond sector for decades now. It has learned the art at every level,” he said. “In life you graduate, you go to the next level. So the idea here is Botswana also needs to go to the next level.”

Gaolathe dismissed concerns that Botswana could overextend itself financially in pursuit of a larger De Beers stake, saying the government would approach any investment with discipline and caution.

“The issue is not whether Botswana has the funding,” he said. “The issue is whatever partnership that Botswana conjures, is it the type of partnership that has the strategic superiority to take the diamond sector to the next level.”

While reaffirming his confidence in the future of natural diamonds, Gaolathe stressed that Botswana can no longer rely exclusively on the industry for economic growth. Diamonds remain the country’s dominant source of export earnings and government revenue, but the recent downturn has exposed the risks of dependence on a single commodity.

“We have no choice to diversify or we perish,” he said.

Gaolathe outlined a broader economic transformation strategy aimed at building new sources of growth in areas including mineral beneficiation, manufacturing, energy, financial services, agriculture and tourism. At the same time, he emphasized that diamonds will continue to play an essential role in Botswana’s future, particularly as the country seeks to capture more value from its natural resources before export.

“Diamonds can remain part of Botswana’s future without remaining the sole architect” of that future, he said.

The JCK News Desk uses AI to help research and produce the first draft of articles. This story was then reviewed by staff writer David Blomquist.

(Photo: Ndaba Gaolathe in Creative Commons image from the government of Japan, via Wikipedia)

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