A New Era for Botswana’s Diamond Wealth

Akinwumi Adesina, former President of the African Development Bank (AfDB), has been appointed Chairperson of the Diamonds for Development Fund. This initiative represents a landmark agreement between Botswana and De Beers to ensure greater economic benefits from diamond mining.

The fund was established during negotiations that extended Debswana’s mining licenses through 2054, securing a vital partnership for both nations. De Beers has committed an initial BWP 1 billion ($74.4 million) investment, along with annual contributions linked to Debswana’s performance.

Adesina praised the fund as “a bold and visionary initiative” that will create “enduring value for generations.” He emphasized that both diamonds and the lives of Botswana citizens should shine through this partnership.

The Diamonds for Development Fund aims to diversify Botswana’s economy beyond mining, supporting initiatives in education, healthcare, infrastructure, and entrepreneurship. The fund is currently finalizing its board appointments with independent directors.

Strategic Shift for Diamond Benefits

This development follows years of negotiations where Botswana sought greater economic returns from its diamond resources. Key outcomes include:

• The return of sightholder sales to Gaborone, creating local jobs and expertise
• Investments in training centers and manufacturing facilities
• A new 10-year sales agreement with a potential 5-year extension
• An increase from Botswana’s Okavango Diamond Company handling 30% of Debswana production to 50% by 2035-40

“We are proud and honored to have Dr Akinwumi Adesina join us,” said Bogolo Kenewendo, Botswana’s Minister of Minerals and Energy. “His appointment solidifies our commitment to maximizing the value of Botswana diamonds for economic transformation.”

The fund’s success could serve as a model for how natural resource wealth can create sustainable development outcomes in other African nations.