Politics may complicate Botswana diamond dispute

Significance

Protracted negotiations over a new deal have been complicated by political tensions between President Mokgweetsi Masisi and his predecessor Ian Khama. Botswana produces almost one-quarter of the world’s diamonds and its importance to the sector has been magnified as buyers shun diamonds from Russia, the world’s largest producer.

Impacts

• Efforts to prosecute Khama could damage Botswana’s reputation as a stable democracy.
• Difficulties with the negotiations may encourage De Beers to broaden its supply base beyond Botswana.
• Uncertainty over future diamond production will encourage Botswana to diversify its mining sector into coal and copper.