Botswana is currently the world’s second largest producer of diamonds. Many of the world’s largest diamonds are mined here. The diamond industry helps Botswana build infrastructure, promote women’s careers, and fight AIDS. Learn about other ways diamonds help Botswana.
Diamonds at the dawn of independence
The British Empire ruled Botswana from 1885 to 1966. They viewed Botswana as backward and without natural resources, and therefore paid no attention to the region. In 1966, Botswana was one of the poorest countries in the world, with an average annual income of about $80 per person. But the discovery of diamonds changed that. In 1967, just one year after Botswana’s independence, De Beers discovered a massive diamond kimberlite pipe in Orapa, a remote area about 250 miles from Botswana’s capital, Gaborone. This kimberlite pipe is the second largest diamond kimberlite pipe in the world. Four years later, the Orapa diamond mine began production, becoming the largest diamond mine in the world by area. The timing of this discovery meant that this new resource could be used by the people of Botswana.
Debswana – A groundbreaking partnership
De Beers and Botswana soon formed a 50/50 joint venture, diamond giant Debswana . Debswana owns four mines (Orapa, Letlhakane, Jawaneng and Damtshaa) and produced 24% of the world’s diamonds by value in 2018, making it one of the world’s largest diamond producers. Debswana is also Botswana’s second-largest employer after the government. Its Jwaneng mine (also known as the “Prince of Mines”) is the richest diamond mine in the world, producing the most diamonds in the world by value, and is a famous mining area in diamond history . The Botswana government owns about 15% of De Beers and therefore has a big say in how diamond revenues are collected and spent. After negotiations with the Botswana government, a large portion of Debswana’s revenues are at the government’s disposal to build schools and roads, and to provide water to homes and farms.
Diamonds change Botswana – becoming a middle-income country
Festus Mogae, the third president of Botswana (1998-2008), once said: “Every diamond purchased by consumers becomes food on the table of the people of Botswana, bringing them better living conditions, better medical facilities, safe and sanitary drinking water, and more roads to remote areas.” With the help of diamonds, Botswana has rapidly developed from a low-income country to a middle-income country. In 2019, diamond revenue accounted for about 60-85% of Botswana’s export revenue, 25% of GDP and one-third of government fiscal revenue. This has created jobs and helped build roads, hospitals and schools. Diamonds are so important to Botswana that the reverse side of the Botswana 20 Pula banknote (BWP 20) features the first diamond processing factory built in Orapa in the late 1960s.
Under the sales agreement between De Beers and the Botswana government, De Beers agreed to move all sales and operations of its Diamond Trading Company International (DTCI) from London to Gaborone, Botswana’s capital, by the end of 2013. In 2012, De Beers established the Diamond Trading Company Botswana (DTCB) sorting center in Gaborone. In 2013, DTCI moved its rough sales activities (“sights”) to Botswana, generating billions of dollars in rough sales each year. The Gaborone factory is one of the largest and most technologically advanced diamond factories in the world, a joint venture between De Beers and the Botswana government.
Diamonds help fight AIDS
In the mid-1980s, AIDS struck Botswana, infecting teachers, accountants and many other professionals, and undoing many of the progress Botswana had made over the years. Then-President Festus Mogae agreed to an unprecedented anti-AIDS strategy, using government funds to provide HIV/AIDS drugs to all infected citizens. This was the first of its kind in Africa.
Debswana has also joined the fight against AIDS. It has worked with the Botswana Ministry of Health to open hospitals at the Orapa and Jwangeng mines. These hospitals serve not only the miners but also the local community. In 2001, Debswana became the first company in the world to offer free testing and free antiretroviral treatment to its employees and their spouses. In 2008, free treatment was extended to children. Thanks to Debswana’s efforts, the HIV mortality rate among its employees has dropped from 31% in 1996 to less than 1% in 2016.
Ethical Diamonds
Debswana opened hospitals, schools and other facilities in mining areas that were open to the public, not just its employees. In addition, the diamond industry provided more jobs and leadership positions to the people of Botswana and black Africans. Most of Debswana’s executives were Africans trained by De Beers. When DTCI moved its operations from London to Gaborone and established DTC Botswana, its state-of-the-art sorting and cutting facilities employed hundreds of people.
De Beers is also working with UN Women to promote gender equality in science, technology, engineering and mathematics (STEM) in diamond-producing countries. This means, in part, having a large number of women in senior leadership positions. In Botswana, the program also actively supports women-owned micro-enterprises, helping female entrepreneurs grow their businesses and provide employment opportunities for their communities.
To protect the environment, De Beers has pledged to create 6 hectares (14.8 acres) of wildlife sanctuary for every hectare of land mined. To fulfill this commitment, De Beers has established the 22,000-hectare Orapa Wildlife Sanctuary and the 19,085-hectare Jwana Wildlife Sanctuary, which is home to more than 1,700 animals, as well as a cheetah sanctuary. The De Beers Group is also actively involved in rhino conservation, including breeding and migration. Debswana in particular often raises rhinos in captivity and then releases them back into the wild in order to increase the number of white rhinos.
How to Get Botswana Diamonds
Botswana is one of the world’s largest producers of ethical diamonds, and its diamonds are highly sought after by consumers who are concerned about how diamonds are produced. To help consumers understand the origins of their diamonds, GIA works with diamond mining companies in Botswana, Canada, Russia, South Africa, and other countries to confirm the origin of diamonds from these locations. A GIA Diamond Origin Report can help consumers feel confident that their diamond purchase supports the people of the country where the diamonds were mined. Ask your local retailer for a GIA Diamond Origin Report for your diamond.
Overall, Debswana is proof that a country and a diamond company can achieve win-win results by working together in a socially and environmentally responsible way. Diamonds have provided tremendous support for Botswana’s infrastructure since its independence. They have also helped the country reinvest in new industries, so that even if Botswana’s diamond resources are depleted one day, the country’s economy can still develop sustainably. All of this can ensure that Botswana has a bright and beautiful future.
