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The Botswana government refused to guarantee a renewal of a 10-year sales agreement with diamond firm De Beers within the year due to delayed negotiation brought about by the coronavirus pandemic.
According to Secretary Mmetla Masire of Botswana's Ministry of Mineral, the talks ideally should end by December but there are no guarantees that will happen due to travel restrictions.
The deal is vital for the Debswana Mining Company, jointly held by De Beers and the Botswana government, in providing the country with around two-thirds of its foreign exchange and a fifth of its GDP.
De Beers sources 70 percent of its diamonds in Botswana, generating 90 percent of its sales.
A new deal would give De Beers another 10 years of clarity on the terms of its revenue stream.
Diamond mining has transformed Botswana from being primarily an agri-based economy to one of Africa’s richest countries.
President Mokgweetsi Masisi is boosting its fledgling diamond polishing and cutting industry to create jobs.
